The art and science of conceiving, carrying out, and assessing cross-functional decisions that will help a company accomplish its goals is known as strategic management. It is the process of identifying the goals of the organization, creating plans and policies to attain these goals, and allocating funds to put these plans and policies into action. Therefore, strategic management combines the efforts of a company’s numerous functional divisions to accomplish organizational goals. It is the highest degree of managerial action, often developed by the BOD and carried out by the CEO and executive team of the firm. The enterprise is given overarching direction by strategic management.
“Strategic management is an ongoing process that evaluates the business and the industries in which the company is involved; evaluates its competitors and sets goals and strategies to meet all current and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs to be replaced by a new strategy to meet changed circumstances, new technology, new competitors, or a combination of these factors. (Lamb, 1984) strategic-management
Processes
The three basic processes that make up strategic management are as follows:
- creation of a strategy analyzing the current circumstances, oneself, and competitors from both an internal and external, micro-environmental and macro-environmental perspective.
- Goals are established in conjunction with this assessment. Creating vision statements, mission statements, overall company objectives (financial and strategic), strategic business unit objectives (financial and strategic), and tactical objectives entails looking at the long term and imagining a potential future.
- These goals ought to recommend a strategic plan in light of the circumstance analysis. The strategy outlines how to accomplish these goals in detail.
This three-step plan formulation procedure is also known as the “where you are now, where you want to go, and how to get there” approach. The core of strategic planning can be found in these three questions.
putting a plan into action
- for the allocation of enough resources (financial, personnel, time, technology support)
- establishing a command structure or some other type of organization (such as cross-functional teams)
- entrusting certain people or groups with the execution of specific duties or processes
- It also entails process management. As part of this, results are monitored, benchmarks and best practices are compared, the process’ effectiveness and efficiency are assessed, deviations are controlled for, and any necessary improvements are made to the process.
- When putting into practice a particular program, this entails gathering the necessary resources, creating the process, training, testing the process, documenting, and integrating with (or converting from) legacy processes.
strategy assessment
Determining the organizational strategy’s efficacy.
