Nowadays strategic management has become one of the primary topics in management of organizations because of the dynamic business environment. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. Strategic management process that defining the widespread action plans which identifies the direction that helps to take a longterm plan for a business organization and that guides resource utilization to accomplish the organizational goals of the management with a creative sustainable competitive advantage. In their quest for economic success, managers have always noticed that for some reason, some companies seem to flourish apparently effortless, while others.
Strategic evaluation occurs as the final step in the final step in a strategic management cycle. It has got a theory that describes how and what to do to solve problems or situations. The importance of corporate strategic processes in managing efficiency of enterprise 69 priority rules help managers rank the accepted opportunities mostly for resource allocation, timing rules set the rhythm of key strategic processes and help synchronize an enterprise with emerging opportunities and coordinate the enterprise various parts. The importance of strategic management to business organizations. By defining objective of organization clearly there would be no wastage of time, money and effort. It is about the management of the total organisation, in order to create the future. It defines organizations goals and fixes realistic objectives, which are in alignment with. What is the importance of strategic management in todays business the importance of management to business today 1. In the corporate sector, its emergence started after. Strategic planning is a continuous process that enables organisations to adapt to the changing, dynamic environment. Strategic management, business performance, smes, competitive advantage, nigeria. Importance of strategic management in business expert.
Importance of strategic management in an organization keka. A good strategic framework provides focus by limiting the number of directions the organization runs. Scan the macroenvironment for actual or potential changes in the pest factors. 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 alert about. 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 corelated to other organizational members. Strategic management of business performance based on. In the current economic climate, whatever the size of your business or organisation, the importance of strategic management is particularly great. Jun, 2012 the importance of strategic management in business strategic management provides the framework for all the major business decisions of an enterprise such as decisions on businesses, products and markets, manufacturing facilities, investments and organizational structure. Importance of strategic management in businesswhat is strategic. This paper entails the concepts of strategy, strategic planning, strategic thinking, strategic management and the importance of strategic management. Strategic management is more a philosophy or ideology of business and management. Strategic management in multinational companies case of. The importance of strategic implementation bizfluent.
In concluding, good strategic management is important to corporations because it allows managers to choose a strategic position, put a strategy into action and make strategic choices. Strategic management includes the internal elements of organisation, such as style, structure and climate, it includes implementation and control, and consideration of the soft elements of the environment. Strategic management and planning are key to a companys success, right. In the corporate sector, its emergence started after the culmination of second world war. Despite the fact that researchers have paid much attention to strategic management tools and techniques, there is no clear definition of these tools and techniques. Strategic management is all about specifying organizations vision, mission and objectives, environment scanning, crafting strategies, evaluation and control. It is one of the most important strategic management tools which is used to assess the effectiveness of a company along with analyzing its loopholes as well. Here are some reasons why strategic management is a crucial business practice. For many business owners and leaders, creating a vision, company values, and a strategic plan can. Without strategic planning, businesses simply drift, and are always reacting to the pressure of the day.
When youre running a small business, its wise to have a strategy to ensure that you meet the needs of your customers and reach your objectives. This paper presents strategic management as an important business management concept. Keywords culture of organization productivity strategic management strategist strategy jel classification m10, m19 full article 1. Explain the importance and limitations of strategic management.
When used in tandem, strategic management and planning create a comprehensive set of procedures that will govern the future decisions of the business. Importance of business ethics in strategic management. It defines strategy and explains the key concepts in strategic management. The importance of strategic evaluation your business. Jun 06, 2016 importance of strategic management planning or designing a strategy involves a great deal of risk and resource assessment, ways to counter the risks, and effective utilization of resources all while trying to achieve a significant purpose. 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. Without a strong strategy, many companies will falter. Importance of strategic management in business expert journal of. It is usually considered that strategic management has five critical components. Nov 12, 2017 a good strategic framework provides focus by limiting the number of directions the organization runs.
Assess the importance of the changes for the market, industry and business. Importance of business ethics in strategic management qs. In order to understand the essence of strategic management tools and techniques, a precise definition of it should be presented. The main importance of strategic business management is to assist the business profit and decision making, yet its functions can also be broken down. Mba strategic management lecture notes pdf download mba. Importance of strategic management alertness in employees. And every manager understands it and largely makes it in their own way. The art of strategic management remained primarily associated with the military history. Setting business goals and tying them to a companys vision are critical when developing a roadmap to growth. Companies that dont plan have exponentially higher rates of failure than those that plan and implement well. Strategic management practices have been observed to significantly relate to the sustainability and growth of firms in the wake of modern corporate governance systems globally muriuki et al.
Strategic management involves setting objectives, analyzing the. Discuss the importance of management to business today. The importance of achieving strategic fit business essay. The importance of strategic planning practical decisions. Strategic management is the management of an organizations resources to achieve its goals and objectives.
The process of strategic management is a comprehensive collection of different types of continuous activities and also the processes which are used in the organization. To avoid drifting into an iceberg flow, or if already there, to plan a way out and minimise the risk of actually hitting one, you need the visibility good strategic planning gives you. Pdf strategies and strategic management in small business. What is the importance of strategic management in todays business. Defining the organizations business and developing a strategic mission as a basis for establishing what the organization does or doesnt do and where its headed. What is the importance of strategic business management. The impact of strategic human resource management on organizational performance 104 profitable company or a healthy economy is the productivity of the workforce. In a business environment, ethics are a key factor in responsible decision making. Strategic management advantages and disadvantages wisestep. Pdf the importance of strategic management to business. It directs group efforts towards achievement of predetermined goals. Strategic also means of great significance or import and so strategic plans, at all levels, are intended to address matters of great importance.
For most, the concept remains abstract and theoretical. The strategic role of finance 4 the strategic advantage of finance leaders are the most valuable asset of an organization. The main task in the strategic planning process is. Strategic management helps business to be proactive rather being reactive it helps a business to asses and understand business environment and potential problems it would face and devise strategies and counter strategies to handle the issues smes need to adopt strategic management and learn to be proactive and device a strategies to. The importance of human resource management in strategic. Strategic management meaning and important concepts.
Sep 24, 2015 importance of strategic management alertness in employees. How to implement it to take the advantage to the fullest. Therefore, given to these questions, the importance of strategic management should be further investigated. Strategic management provides the framework for all the major business decisions of an enterprise such as decisions on businesses, products and markets, manufacturing facilities, investments and organizational structure. The importance of strategic management applied corporate. Leaders who have a strong vision and grasp of what a company needs will always have a leg up on the competition. The history is filled with the examples where the strategic management of offensives and counter offensives paved the path for decisive victories. Their input, advice, and lessons learned, both successes and failures, have been incorporated into this document so that we may all apply better strategic management processes in our organizations.
It guides the company to move in a specific direction. Follow the strategic implementation steps to ensure your strategy gets put. The importance of the strategic management process in the. However, having a strategy on its own is not enough. The impact of strategic management on business outcomes econstor. The alertness among the employees increases the success of objectives and targets due to strategic management. Strategic management and strategic planning are both incredibly important aspects of organizational management.
It therefore will determine higher organizational performance especially when strategic goals are achieved. A strategic management tool which is used to analyze the strengths, weaknesses, opportunities and threats of an organization is known as swot analysis roney, 2004. Why strategic management is important to a business essay. In recent years, all around the world fierce competition has emerged because of some concepts such as globalization, fast technological changes, new consisted markets and changing customer expectancies and the competition has become more and more. Strategic management is a way to transform the existing static plan in a proper systematic process. What is the importance of strategic management in todays. Importance of strategic management in businesswhat is. Implementing your strategy is a vital element that leads to success.
Importance of business ethics in strategic management qs study. Nov 21, 2018 strategic management can make or break a company. Ethics are a set of moral standards that are relied upon to reach conclusions and make decisions. It coordinates organisations internal environment with the external environment, financial resources with nonfinancial resources and shortterm plans with long term plans. Strategic sustainability is associated with significant business benefits as well as positive environmental impacts, yet many organizations fail to recognize the potential of this approach, and neglect the factors necessary for its successful implementation. Secondly, strategic management can not be limited to a set of routine rules, procedures and schedules. Without it, a business has no way to gauge whether or not strategic management strategies and plans are fulfilling business objectives. Mba strategic management lecture notes pdf download mba 3rd.
Special thanks is extended to those who participated in the case studies by sharing the details of their strategies. In a successful corporation, strategic planning works as the pathfinder to various business opportunities. The author is also proving that the small business managers are actually very preoccupied by the issues of strategies and strategic management and that smes are displaying a pronounced strategic. This is because strategy is a source of sustainable. By creating this type of structured operation, businesses are able to improve their efficiency, reduce their expenses, and consolidate. Importance of management to business strategic business management business policy and strategic management pdf icaew strategic business management pdf. To avoid drifting into an iceberg flow, or if already there, to plan a way out and minimise the risk of actually hitting one, you. Strategic management can have some immediate changes in the organization. Why strategic management is important to a business. Strategic also means of great significance or import and so strategic plans, at all levels, are intended to address matters of. Strategic management originates from strategic planning and as a technique for managing all important aspects of a companys environment it scientifically. Strategic management, is it essential to be used in current business. Pdf this paper presents strategic management as an important business management concept.
1529 46 1449 131 1278 248 1149 304 156 775 551 560 1457 549 1274 465 1214 315 177 269 1414 1089 705 1196 844 558 632 514 826 1283 650 714 1195 500 777 961 1266 26 637 45 795 1472 678 366 803 1451