Strategic management is the continuous planning, monitoring, analysis, and evaluation of everything an organization needs to achieve its goals and objectives. Changes in the business environment will require organizations to continually evaluate their strategies for success. The strategic management process helps organizations to assess their current situation, draw strategies, implement them and analyze the effectiveness of the management strategies implemented. Strategic management strategies consist of five main strategies and may differ in implementation depending on the environment. Strategic management applies to both local and mobile platforms.
Benefits of strategic management
Strategic management is generally considered to bring financial and non-financial benefits. The strategic management process helps the organization and its management to contemplate and plan its future existence, fulfilling the main responsibility of the board of directors. Strategic management sets the direction for the organization and its people. Unlike one-off strategic plans, effective strategic management continually plans, monitors, and tests the organization’s activities, resulting in improved operational efficiency, market share, and profitability.
Strategic management concepts
Strategic management is based on a clear understanding of the organization’s mission; your vision of where you want to be in the future; and the values that will determine your actions. This process requires a commitment to strategic planning, a part of business management that includes the organization’s ability to set both short-term and long-term goals. Strategic planning also includes planning the strategic decisions, activities, and allocation of resources necessary to achieve these goals.
Having a defined process for managing an organization’s strategies will help organizations make logical decisions and quickly develop new goals to keep up with the evolving technology, market, and business environment. Therefore, strategic management can help an organization gain a competitive advantage, increase market share, and plan for its future.