The Meaning of Strategic Management
Strategic management is a unique way of achieving desired goals and objectives. so strategic management is simply defined as the art and science of formulating, applying and assessing cross-functional decisions that allow an entity to accomplish its goals and objectives. this management process mainly involves three functional areas including understanding the strategic position of the entity, strategic choice, and strategic employment.
The business environment is changing day by day, and because of the environment changing, every business organization will face various challenges. In this case, SM plays a vital role in the organization through its enduring planning, regulating, analysis, and assessment of all requirements an organization needs to meet its goals and objectives.
Dimensions of strategic management model
When considering the strategic management model, is concerned with three dimensions such as strategic analysis, strategic choice, and strategic implementation. All of these dimensions are interrelated with each other and none has priority over another.
The simple meaning of strategic analysis is understanding the strategic position of the organization. This process involves identifying the impact of the changing environment in which it operates. Therefore, strategic analysis is important for setting up strategic plans for decision-making and achieving better organizational performance. the strategic analysis is mainly concerned with the followings,
Identifying the impact of the environment
Strategic capabilities of the organization
Organizational goals, stakeholders, and CSR
Considering the strategic choice can be defined as the decision of choosing a future strategy of an entity. This addresses the question “Where shall we go “. In this process, entities involve with various strategic options and select the best strategy among alternatives.
Some common strategic choices of organizations can be represented as follows,
- Corporate strategy
- Business Strategy
- International strategy
- Innovation and Entrepreneurship
- Acquisitions and alliances
the process of managing strategies in action can be referred to as strategic implementation. It means the execution of plans and strategies to achieve desired goals and objectives of an organization.
Strategy implementation consists of strategy performance and evaluation, strategy development processes, organizing, leadership & strategic change, and strategy practice
Role of strategic management
Strategic management plays a vital role in every organization. It is a collection of ongoing processes and actions that organizations used to utilize their limited resources efficiently and effectively to reach the organization’s goals and objectives.
SM is helpful for organizations to gain a competitive advantage over their rivals by providing overall direction with plans and strategies. And also strategic management enables superior organizational performance by articulating, collaborating, and monitoring the strategy implementation.