What is strategic management, and why is it important. According to tapera 2016 19, a strategic plan is a tool. By strategy we mean futureoriented plan for interacting with the competitive environment to achieve organizational goals. This definition is quite succinct but still includes nature and direction. The result of strategic planning process is a strategic plan which is a blue print for the organization as it moves into the future. Strategic evaluation occurs as the final step in the final step in a strategic management cycle. It directs group efforts towards achievement of predetermined goals. The importance of strategic evaluation your business. Nature and significance of management management is an art of getting things done with and through others. The alertness among the employees increases the success of objectives and targets due to strategic management. Mba strategic management lecture notes pdf download mba. Its characteristics, formulation, types and other details.
The nature of strategic management international journal of. Before describing the nature of strategic human resource management shrm, it is useful to understand the meaning of strategic management itself. Management coordinates all activities and resources. Pdf the nature of strategic management researchgate. Strategic management meaning and important concepts. It involves creating organizations which generate value even in turbulent environment over a sustained period of time. Nature of financial management basically involves decision where risk and return are linked with investment.
Nature of strategic management the strategicmanagement process does not end when the firm decides what strategy or strategies to pursue. It is a process of combining the decisionmaking structure with the cost information, in order to reinforce the business strategy as a whole. Strategic intent is very important concept of management that is explained as a high level statement of the. Generally high risk investment yield high returns on investments. Strategy is developed by significant bold decisions being made. Nature of strategic management linkedin slideshare. For strategic management to be successful, the organizations leaders must have a thorough understanding and analysis of their company.
The nature of strategic management saint leo university. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Pdf strategy at the leading edge features short reports on. Abstract to define strategic management is very easy. Explain the nature and scope of strategic cost management. Chelte western slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
It introduces a practical, integrative model of the strategicmanagement process and defines basic activities and terms in strategic management and discusses the importance of business ethics. There must be a translation of strategic thought into strategic action. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. They have some specific mission towards which all efforts are directed. Nature and scope of strategic management, nature of. Strategy is very important for an organization due to the limitation of resources. Discuss the nature of strategy formulation, implementation, and evaluation activities. Planning provides the frame work within which coordinating,motivating and. Strategic management mgt603 vu importance of strategic management why do we need to lay so. Kmart, have developed a codeofconduct manual outlining ethical. The purpose of strategic management is to use and create new and different opportunities for future.
By defining objective of organization clearly there would be no wastage of time, money and effort. Nature and scope of strategic management authorstream. The strategicmanagement process provides a basis for identifying and rationalizing the need for change to all managers and employees of a firm. Define and give examples of key terms in strategic management. Strategic management meaning and important concepts 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. To manage for the present and continue to change so that the firm continues to prosper, in a. He is the transouth professor of strategic management at francis marion university in florence, south carolina. The nature and value of strategic management strategic management is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a companys objectives.
Nature, significance and scope of financial management 2. Strategic cost management or otherwise called as scm is the cost management technique that aims at reducing costs while strengthening the position of the business. Describe the benefits of good strategic management. Nature and scope of s trategic management presented by.
My objective in this essay is to explain the concepts strategy, strategic planning, strategic thinking, strategic management and the importance of strategic management to provide a useful departure point for the. Now, most of the organisations recognised the emerging. Nature and scope of strategic management, nature of strategic. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. In fact, effective strategy implementation depends on the strategic human resource management. Planning unit iii introduction planning is the most fundamental function of management. This paper aims to provide an understanding of the nature and dimensions of strategic leadership. Importance of strategic management in businesswhat is. In 1994, henry mintzberg, an iconoclastic professor of management at mcgill university, took the entire strategic planning establishment to task in his book, the rise and fall of strategic planning. So, role of financial manager is to effectively calculate the level of risk company is involve and take the appropriate decision which can satisfy shareholders. Meaning nature, scope, and importance of strategic management.
Session 1 nature and value of strategic management. The strategicmanagement process can be described as an objective, logical, systematic approach for making major decisions in an organization. This lecture provides an overview of strategic management. Therefore, this research aims to assess the acquired knowledge of university management students relating to strategy and strategic management concepts with the purpose of answering the following question. Importance of strategic management alertness in employees. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic management is both an art and science of formulating, implementing, and evaluating, crossfunctional decisions that facilitate an organization to accomplish its objectives. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently. Without setting the goals to be reached and the course of action to be followed, organizing, staffing, directing and controlling cannot be effective. The term strategic management is used to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing corrective measures for the deviations if any to reach the organizations strategic intent. Formulate the companys mission, including broad statements about its purpose, philosophy, and. His strategic management textbook, is used in more than 400 colleges and universities to teach strategic planning. Mergers are a form of complex organization often defensive in nature.
A swot analysis should be conducted strengths, weaknesses, opportunities and threats to. It helps in achieving group goals it arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It is an essential management process to strategize and prepare for different odds. The nature of strategic decision making exploiting the. The nature of strategic management is dissimilar form other facets of management as it demands. Figures taken from london business schools masters in management 2010 employment report. Thus, appropriate human resource management assumes greater significance after globalisation and consequent economic boom and recession. While framing the strategy management studies the capability and weakness of employees and resources and taking the steps to improve them, the employees become more. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firms performance.
Strategy in the simple sense of the word is a plan designed to achieve an objective and planning as we all know is the primary function of management that lays down the base for the entire business. What is strategic management definition and features. Sources of raising long term finance and cost of capital 5. Adapting to change in external trends, internal capabilities and resources what. Pdf the importance of strategic management to business. The nature of strategic management linkedin slideshare. Strategic management mgt603 vu lesson 1 nature of strategic management objectives. It considers the nature of strategy in its broadest sense and puts forward a model of a sustainable strategically focused school. The nature of international financial management is in having a relationship with accounting and economics. Chapter 1 the nature of strategic management strategic management. The use of the systems approach requires managers to define the organization in broad terms and attempt to identify the important variables and interrelationships.
242 1286 379 1270 843 1358 1351 338 748 892 303 908 949 11 852 1486 1153 131 612 1362 666 378 685 15 1322 859 1253 481 248 688 1003 575 771 1108 197 514 981