Definition of Strategic Management
Strategic
Management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive
advantage for their organization. An organization is said to have competitive
advantage if its profitability is higher than the average profitability for all
companies in its industry.
Strategic management can also be defined as a bundle of
decisions and acts which a manager undertakes and which decides the result of
the firm’s performance. The manager must have a thorough knowledge and analysis
of the general and competitive organizational environment so as to take right
decisions.
Strategic Management refers to the managerial process
of forming a strategic vision, setting objectives, crafting a strategy,
implementing the strategy, and then initiating corrective adjustments in the
vision, objectives and strategy when needed.
Strategic Management is a way in which strategists set
the objectives and proceed about attaining them. It deals with making and
implementing decisions about future direction of an organization. It helps us
to identify the direction in which an organization is moving.
One
of the major role of strategic management is to incorporate various functional
areas of the organization completely, as well as, to ensure these functional
areas harmonize and get together well. Another role of strategic management is
to keep a continuous eye on the goals and objectives of the organization.
No comments:
Post a Comment