The definition of Strategic management in a pedantic manner suggests that strategic management is the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.
In a more layman’s language strategic management is deciding what is to be done, who would do it, how it is to be done and whether the internal and external environment supports the above decisions.
To understand the importance of Strategic Management we first need to understand what ‘Strategy’ is and why do we need this term. A strategy is a plan of action designed to achieve a long-term or overall aim, this definition makes it clear why strategy is so important in not just professional or corporate sphere but all spheres of life.
Strategy constitutes an organization means and decisions to achieve the goals hence, it is very important that every management member, be it an executive manager or a CEO should be able to understand and execute Strategic Management.
There are several financial and non-financial benefits of strategic management. When firms engage in forward-looking planning and careful evaluation of their priorities, they have control over the future, which is necessary for the fast-changing business landscape of the 21st century. In contrast, firms that do not engage themselves in meaningful strategic planning are often bogged down by internal problems and lack of focus that leads to failure.
In recent years, virtually all firms have realized the importance of strategic management. However, the key difference between those who succeed and those who fail is that the way in which strategic management is done and strategic planning is carried out makes the difference between success and failure.
Our upcoming course on Strategic management, starting from 5th Oct’17 will offer you a holistic picture on pitfalls in strategic management and how to avoid it. Enroll