Strategic Management is termed as an art and science of developing, implementing and evaluating cross-functional decisions that grant an organization to achieve its various goals and objectives.
In a simpler language, Strategic Management analyzes the extensive initiatives, associated resources, and performance in external environments. It brings about the mission, vision, and objectives as well as developing policies that help in driving growth and profitability of an organization. Strategy Management, in short, is an underlying methodology behind the business operations.
• Strategic Management involves five steps:
• It is a vast, intricate and ever-emerging venture helpful in dividing series of concrete steps to depict the process of strategic management.
• Identifies the five general steps that allow businesses to develop a strategic process.
• Strategic management is a significant thing for an organizational development as it coordinates the mission and vision of the operations.
• It is analytical to the development and inflation of all organizations.
• The introductory task in the strategic management is to organize and distribute the organization's vision and mission statement.
• Strategic Management is term as an art and science of developing, implementing and evaluating cross-functional decisions that grant an organization to carry out its various goals and objectives.
• Strategic Management explores to coordinate and combine the activities of a company’s different functional areas to attain long-term organizational targets.
As the whole strategic management process is large, complex and ever-emerging, it is divided into a series of exact steps. Let’s have a brief look at the steps of most general frameworks:
Strategic analysis is a complicated process which takes a lot of time that involves far-reaching market research on the external as well as internal evaluation.
2. Strategy Formation
After the analysis phase, there needs to be a strategy to be formed. The organization chooses a strategy for the core expertise and potential competitive advantage. The risk evaluation and contingency plans are also flourished based on the external forecasting. Brand positioning and image should also be strengthened.
3. Goal setting
With the determined strategy in mind, the management analyzes and communicates goals that correspond to the anticipated outcomes, strength and opportunities. These aims include quantitative ways to calculate the success or failure of the goals along with the connected organizational policy. The goal setting is the final phase before the start of implementation begins.
The implementation phase starts with the strategy in place, and the business strengthens its organizational structure to assign resources to special projects.
During the final phase of the plan, all the budgetary figures are submitted for calculations. Financial ratios should be evaluated, and performance reviews should be delivered to the recognized personnel as well as in departments. The produced information will be used to restart the planning process or to boost the overall success.
The above step highlights the key aspects of the Strategic Management and thus, it is significant for any organization to perform strategic management task for the betterment and success of the organization.