Strategic Management

Definition: Strategic management is the comprehensive process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its long-term objectives.

This discipline integrates various aspects of business, including finance, marketing, operations, and human resources, to align organizational resources with opportunities and threats in the ever-changing marketplace.

Key Components of Strategic Management:

  1. Environmental Analysis: This phase entails assessing the internal strengths and weaknesses of the organization and external opportunities and threats in the industry and market. Tools such as SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis are commonly used to evaluate these factors.
  2. Strategy Formulation: Once the environmental analysis is complete, strategic objectives are set based on the organization's mission and vision. Strategies are then developed to achieve these objectives, considering factors such as competitive positioning, differentiation, cost leadership, and innovation. This stage requires creative thinking and decision-making to design the most effective course of action.
  3. Implementation and Evaluation: The formulated strategies are put into action through resource allocation, organizational restructuring, and operational changes. Continuous monitoring and evaluation are crucial to ensure that the strategies remain relevant and effective in achieving the desired outcomes. Adjustments may be made as necessary to adapt to evolving circumstances and maintain alignment with organizational goals.

Benefits of Strategic Management:

  1. Competitive Advantage: By systematically analyzing the competitive landscape and leveraging its strengths, an organization can gain a competitive edge over rivals.
  2. Improved Decision-Making: Strategic management provides a structured framework for decision-making, enabling managers to make informed choices aligned with the organization's long-term goals.
  3. Enhanced Adaptability: Organizations that engage in strategic management are better equipped to adapt to changes in the business environment, fostering resilience and sustainability over time.

Other Terms:

Succession Planning  |  Shared Services  |  Staffing Variance  |  Service Level Agreement  |  Shinkage  |  Strategic Workforce Planning  |  Screen Monitoring  |  Staff Occupancy  |  Skills Development  |  Short Day  |  Skill Set  |  Shared Services Centers  |  Screen Recording  |  Statistical Models  |  Skills Matching  |  Skill Mapping  |  Service Level Management  |  Suggested Time Break  |  Shift Work  |  

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