Strategic Management - An Introduction
Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They ...view middle of the document...
Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task. They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management. Thus the employees can judge the impact of such changes on their own job and can effectively face the changes. The managers and employees must do appropriate things in appropriate manner. They need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well. Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization.
|The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving). |
|Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction |
|set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning |
|A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational |
|environment so as to meet the present objectives. While planning a strategy it is essential to consider that decisions are not taken in a vaccum |
|and that any act taken by a firm is likely to be met by a reaction from those affected, competitors, customers, employees or suppliers. |
|Strategy can also be defined as knowledge of the goals, the uncertainty of events |
|and the need to take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that |
|shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the business the company is to carry on,|
|the type of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers and society at |