Strategic management is specifying a firm’s objectives, developing plans and policies to accomplish these objectives, and allocating resources to implement these plans.
Strategic Management includes formulation and implementation and provides a platform that helps an organization to achieve its organizational goal. It is a powerful tool that is used by organizational executives & managers to achieve their goals. It assimilates Marketing, Finance/Account, HRM, Production & Operation research to achieve organizational goal. It is an overall planning that how an organization compete with their competitor’s. However, it is depend upon executive and manager’s skills and ability to implement the strategy correctly & appropriately.
Development of Strategic Management
For the development of strategy formulation, an organization has to involve in actions such as inspecting of the internal and external environment, laying down the objective and developing a strategic plan. Implementation of strategy depends upon effective organization practices – HRM, marketing, research & development, finance, operation and production and so on. Hence, it is a key planning tool for the smooth running of an organization.
No organization in the world has tasted success or accomplished its objectives without setting a proper strategic plan; strategic management is needed to grab opportunities from the market. Organizational effectiveness depends as the strategy set by the organization. An organization needs to set its strategy for many reasons: to survive in the market, defeat new entrants, accomplish organisational goals, and so on.
Strategic management has a different impact on the organization and the organizational members – Provide a course of action to the entire organization, Make managers and organizational members more responsible to achieving their organizational objectives, Allow managers & executive to contribute their knowledge in decision-making for the development of an organization.
Eventually, no organization can run or survive \without strategic plan/management. Strategy management is a plan and road map prepared by the organization to accomplish the long-term objectives of the organization.
