Strategic Management
Strategic management may be understood as
the process of formulating, implementing and evaluating business strategies to achieve organizational objectives.
Strategic Management Process
Environmental scanning Strategy formulation Strategy implementation Evaluation and control
Environmental scanning
Internal environment: internal
environment factors include functional areas, organizational resources, organizational structure and stakeholders.
External environmental: external
environmental factors include social, technical, economic, political, international and natural factor.
Strategy formulation
Corporate strategy formulation Business unit strategy formulation Functional strategy formulation
Strategic implementation
Put the strategy in action. The strategy is to be implemented in an
integrated way.
Evaluation and control
Establishment or determination of standard
performance. Measurement of actual performance. Analyze deviations from acceptable tolerance limits. Execute modifications where necessary and or feasible.
Importance of Strategic Management
Minimizes the effects of adverse conditions
and changes. Provide an objective view of management problem. Give encouragement forward thinking. Encourages a favorable attitude towards change. Allows major decisions to better support established objectives.