What is Strategic Management?
Strategic Management is the continuous process of creating, implementing and evaluating decisions that enable an organization to achieve its objectives.
It is a set of managerial decisions that determine the long term performance of a business enterprise.
Strategic Management Definitions:
James M. Higgins defines as
“Strategic management is the process of managing the pursuit of organizational mission while managing the relationship of the organization to its environment”.
John A. Pearce II and Richard B. Robinson defines as
“The set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of the organization”.
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The term is used to refer to the entire scope of strategic-decision making activity in an organization. Strategic management as a concept has evolved over time and will continue to evolve. As result there are a variety of meanings and interpretations depending on the author and sources.
For example, some scholars and practitioners the term strategic planning connote the total strategic management activities. Moreover, sometimes managers use the terms strategic management, strategic planning, and long-range planning interchangeable. Finally, some of the phrases are used interchangeably with strategic management are strategy and policy formulation, and business policy.
Strategic Management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives.
The strategic management process involves analyzing cross-functional business decisions prior to implementing them. Strategic management typically involves:
- Analyzing internal and external strengths and weaknesses.
- Formulating action plans.
- Performing action plans.
- Evaluating to what degree action plans have been successful and making changes when desired results are not being produced.
Strategic management necessitates a commitment to strategic, which represents an organization’s ability to set goals to determine the decisions and actions that need to be taken to produce those results.
