CHINMAY JADHAV

ROLL NO. 45

TYBBI

WHAT IS STRATEGIC MANAGEMENT?

Strategic management refers to the art of planning your business at the highest possible

level. It is the process of specifying the organization’s mission, vision and objectives,

developing policies and plans, often in terms of projects which are designed to achieve

these objectives.

It is a conduct of drafting, implementing and evaluating decisions that will enable an

organization to achieve its long term objectives. It is also a process of allocating

resources to implement policies and plans as well as projects and programs.

Strategic management is an on going process. It evaluates and controls the business and

the industries in which the company is involved. It assesses its competitors, it sets goals

and strategies to meet all existing and potential competitors and then reassess each

strategy regularly.

It is the duty of the company’s leader. Developing strategies for a corporate is a

management responsibility. Decision making is the most important activity carried out by

all the managers. Strategic decisions are highly complex and significant because they

deal with long term health of the organization.

Strategic management focuses on building a solid structure to one’s business. It later

becomes a combined effort of every individual one employs.

Strategic management concentrates on three major aspects. They are the objectives, best

ways too achieve those objectives and lastly resources required to achieve them.

WHAT IS THE IMPORTANCE OF STRATEGIC MANAGEMNT?

Strategic management has gained importance in recent years. During last century organizations

focused on long-term planning. Long-term planning supposed that external and internal

environment will remain stable for long period of time and thus they made plans for long

duration. Today it is clear to the managers and entrepreneur’s that environment can change at

any point of time and their plans should follow a strategy that includes contingency planning too.

A well-formulated strategy can bring various benefits to the organization in present as well as in

future.

1. Strategic management takes into account the future and anticipates for it.

2. Strategic management reduces frustration because it plans in such a way that it follows a

procedure.

3. With strategic management organizations can avoid helter & skelter and they can work

directionally.

4. Strategic management also adds to the reputation of the organization because of consistency

that results from organizations success.

5. Often companies draw to a close because of lack of proper strategy to run it. With strategic

management companies can foresee the events in future and that’s why they can remain

stable in the market.

6. Strategic management looks at the threats present in the external environment and thus

companies can either work to get rid of them or else neutralizes the threats in such a way

that they become an opportunity for their success.

7. Strategic management focuses on proactive approach which enables organization to grasp

every opportunity that is available in the market.

8. Lastly, all these business operations involve huge amount of funds and all these activities

have to be well planned for effective working of this system. This is possible only with

Strategic management.