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. Strategic management in essence is a fancy name given to. All most all the modern organizations engage in strategic management to ensure that they achieve the desired level of performance. Pdf strategic management and strategic planning process. What is strategic management process steps, stages and phases.
They intend to describe what are the most important points, activities and questions the company should follow throughout the whole managerial process. 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 process strategic management process dr i. Once this is complete, the strategic management process begins. A great resource to get started with is our free strategic plan template which you can download as a pdf. In this essay, we examine our own experiences of strategic planning for a new educational development centre situated in a faculty of a research intensive university. The concepts in strategic management have been developed by a. The major benefits of strategic management for businesses include identification, prioritization and exploration of the opportunities. The result of strategic planning process is a strategic plan which is a blue print for the organization as it moves into the future. They have some specific mission towards which all efforts are directed. This article discusses some of these benefits and cautions against the lack of strategic planning as that would lead to failure over the longer term. Strategic management, linking the rigor of formal planning to vigorous operational execution, may prove to be the answer.
These benefits of strategic management are as follow. Organization acts proactively rather than reactive to any situation. The key of the planning session is that it forces all the participants to focus on what will have a real strategic impact on the movement. In the practical part, an exhaustive analysis on the companys strengths, weakness, opportunities and threats was made by using the detailed figures. The opportunities are better identified, prioritize and exploit by the application of strategic management in the organization. Hiring strategic management consultants for your business will endow you several benefits. In order to achieve my goalthe importance of strategic management, it. A version of this article appeared in the july 1980 issue of harvard.
This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. The relationship between strategic management and competitive. Strategic planning is a process to produce innovative and creative ideas which serve as the core framework for the company and designing its future. In this section we will illustrate and comment on 3 more wellknown frameworks presented by recognized scholars in the strategic management field. The strategic management process defines the organizations strategy. In the practical part, an exhaustive analysis on the companys strengths, weakness, opportunities and threats was made by using the. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. Here, the organization will need to determine both shortterm and longterm methods to leverage its resources in order to meet its goals. Nonfinancial benefits of strategic management bizfluent. To achieve all this, strategic management is essential. Jul 15, 2019 the relationship between strategic management and competitive advantage, when applied appropriately, can help produce exceptional business success. Strategy the word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who. The whole management process requires advancements and recovery, continuous adjustments.
Jun 22, 2017 benefits of strategic management to organization. Pdf this paper presents strategic management as an important. Benefits of strategic management assign2 free download as word doc. The process immensely helps a business to launch new products or to penetrate new group of target markets. Setting direction an organization needs direction so that it has a plan for arranging its core activities. A strategic plan provides management the roadmap to align the. It is usually considered that strategic management has five critical components. Strategic management processes are designed to provide an organization with longterm benefits. Benefits of strategic management reasons to avoid strategic. 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. The one, which was described in this article, is just one more version of so many models that are established by other authors.
It attempts to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. There is an objective view about the problems of the management with the application of strategic management. I have deliberately used the words strategic management and not strategic planning. It always makes sense to address the immediate crises prior to allocating resources time, money, people, opportunity, cost. The strategic management process means defining the organizations strategy.
Jul 01, 2019 each organization has a particular goal in their mind and this requires the implementation of brilliant strategies to achieve their goals and missions. What is strategic management definition and features. Strategic management advantages and disadvantages wisestep. The chief benefits of strategic management and planning. Believe that these benefits of strategic management are enough to encourage people to hire a special team of strategist for the planning of their business. Benefits of strategic planning process an important advantage of the strategic planning process is that it involves all stakeholders, is highly visual and it can be done quickly. Oct 18, 2016 broadly, the benefits of business strategic management can be divided into two distinctive sections.
Wheelen and hunger 2002 say that strategic management is a set of managerial decisions. The 7 benefits of strategic planning strategic management. 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. Benefits of strategic management to organization your. The importance of the strategic management process in the.
Following are the benefits of strategic management process which allows the organizations to adopt it for the long term success. Besides, the challenge of strategic management also should be aware of so that it can be operated well in the competitive market. Strategic management process and its different stages. All books are in clear copy here, and all files are secure so dont worry about it. The first step of every strategic planning process is identifying the. To reap the benefits of strategic management, it is essential to hire professional and trustworthy business consulting services. It allows organizations to be proactive rather than reactive. It is also the process which helps managers make a choice of a set of strategies for the organization that will enable it. In this process, the strategists determine objectives and make strategic decisions.
As mentioned, the whole concept of strategic management encompasses potential benefits and limitations. Strategic management is the process of formulating, implementing and evaluating strategies to achieve its organization objectives. 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. Using a handbook for strategic planning, the senior leadership team can complete most of the.
In the theoretical part, it described the definition, process, benefit and challenge of strategic management. To get an understanding of what goes on in strategic management, it is useful to begin with definitions of strategic management. Strategic management process meaning, its steps and components. According to tapera 2016 19, a strategic plan is a tool. The term strategy is widely used in and presupposes importance. Nicolescu sees in strategic management a process that will stimulate the creative side of people, skilled and knowledgeable in the organization 4.
Benefits of strategic management assign2 strategic planning. There are many benefits of strategic management and they include tangible financial results and intangible cultural and behavioral aspects. In the theoretical part, it described the definition, process, benefit and. Is it worth embarking on a strategic planning process. Pdf the importance of strategic management to business. In this chapter, we introduce the elements and the process of strategic management and the importance, benefits and limitations of strategic management. Potential benefits and limitations of strategic management. If you are looking at the strategic management process to address an immediate crisis within your organization, it wont. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Allows identification, prioritisation and exploitation of opportunities. It results into financial benefits to the organizations in the.
Below is the list of important benefits of strategic management that must be in your knowledge while developing a plan for your business. One is financial benefit and the other one is nonfinancial benefit. Strategic management is a way to transform the existing static plan in a proper systematic process. Historically, the principal benefit of strategic management has been to help organisation formulate better strategies through the uses of a more systematic, logical and rational approach to strategic choice. There are many benefits that an organization can obtain by engaging in strategic management and they can be described as follows. Benefits of business strategic management solution cunix. Management develops strategies to guide how an organization conducts its business and. Learn the benefits of strategic planning and the key to successful strategic planning. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically adapting to change lorganizations should continually monitor internal and external events and trends so that timely changes. Nov 21, 2005 this article is designed to provide you with a realistic understanding of some of the advantages and disadvantages of implementing a strategic management system. Advantages of strategic management management guru.
A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other. Before talking about the stages of strategic management process, it is important to know what is strategic management process. Appreciate the benefits of the strategic management process so that you can make the right operational decisions to facilitate success. There is no universal model of the strategic management process. What is strategic management, and why is it important. There are many benefits of strategic management and they include tangible. Strategic management process definition, importance, steps. The theme of creating sustainable competitive advantage is. David has listed the following benefits that strategic management brings for an organisation. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that. Strategic management process meaning, its steps and. Benefits of strategic management management study guide.
Each organization has a particular goal in their mind and this requires the implementation of brilliant strategies to achieve their goals and missions. Strategic management involves formulation and implementation of the major goals and plans taken by a companys top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Mar 09, 2012 following are the benefits of strategic management process which allows the organizations to adopt it for the long term success. What is strategic management process steps, stages and.
Benefits management a strategic perspective on why. The advantages and disadvantages of strategic management. Strategic management can be defined as a decisionmaking process that leads to the development of the strategic position i. Drawing from the literature, we provide a brief history of strategic planning in university contexts and consider criticisms and benefits. The environmental research has direct impact on the formulation of strategies. Dec 15, 2010 all most all the modern organizations engage in strategic management to ensure that they achieve the desired level of performance. Strategic management and strategic planning give an organization a direction to move in. Strategic management process academic and business research. Jan 09, 2015 a great resource to get started with is our free strategic plan template which you can download as a pdf. Strategic management is the formalization of management processes in order to achieve strategic goals. What is strategic management process top 5 steps in strategic management process with 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 organisation.
Before we try to explain the meaning of strategic hrm, let us first define the terms strategy and strategic management. Defining strategic management, planning outline l why strategic management. The strategic management process can be described as an objective, logical, systematic approach for making major decision in an organization. It is an essential management process to strategize and prepare for different odds. Strategic planning in an educational development centre. Think about strategic management as being a vehicle that helps drive you to your goal of gaining a competitive advantage in the marketplace. Strategic management allows an organization to be more proactive than reactive in shaping its own future. The strategic management process provides a basis for identifying and rationalizing the need for change to all managers and employees of a firm. The next steps are to complete the planning work, publish, deploy. Strategic management process is an ongoing process of five steps which defines the way an organization makes its strategy to achieve its goals. Philosophy expressed by strategic management is, in fact, the. The work of strategic planning doesnt stop at the strategic plan, but its a start. Group assessment process and to define improvement plans.