Strategic management is a multidimensional concept which plays an important role in the survival and sustainability of a company. Without a business strategy, a company cannot grow.
The strategy is a process of setting goals and determining the means to accomplish that goal. This is done in order to enjoy a favorable position in comparison to the competitors. This concept is very similar to developing a new strategy and is undeniably a planning process.
The planning process is a structured process that leads to development strategies in the long-term. Planning is often done in order to develop strategies.
However, the term planning was introduced to focus on a total and integrated process, which takes into account various factors like the internal and external variables of the organizations, the vision, the mission, the goals, the inner working culture, the structure, etc. at the same time.
To sum it all up, strategic management helps in making decisions and taking actions. This results from the formulation and implementation of plans that help companies to achieve designated goals.
The objective of any business is to ensure its competitiveness, safety, and its legitimacy in allcoating resources. The company is in fact a complex system, with part of its business and its existence at the heart of a system linking a number of partners.
The company is a legal entity endowed with human, material and financial resources to achieve a goal, creating the concept of the company for several centuries has led to several tests in shedding light on both the internal dynamics and external organizations.
Planning emerged as a full function in organizations symbolizing the concept of foresight and control but only after the second World War it was used as a reference and as a basis for analysis for strategic decision making.
The term strategic management is often associated with forecasting and this includes designing a future state of the organization to achieve the goals set by leaders and decision makers.
Strategic decisions are binding on the company over a long period since they affect how the company will position itself in a market so as to derive maximum benefit from the resources it mobilizes.
Tags: Strategic Management, definition, planning strategies
[...] Strategic management includes the following critical tasks: 1. The formulation of a corporate mission including philosophy, purpose and goals; 2. The analysis of the internal environment with respect to the conditions and capabilities of the company; 3. The analysis of the external environment: contextual factors and factors related to competition; 4. Analysis of the options of the company by the correlation between internal resources and external environment; 5. Identification of appropriate options by assessing each option in light of the corporate mission; 6. [...]
[...] The process is said to be activated. II) Levels of strategic decisions Source: System-making in organizations The types of possible decisions Classification of Igor Ansoff Igor Ansoff includes three main types of decisions that must be taken in a Company: Strategic decisions Strategic decisions commit the Company over a long period as they determine how the company will pull up a market to get maximum advantage of the resources it mobilizes. One then seeks to answer the essential question of the Enterprise, whic is "what to produce?" and its corollary is "what more can be done to efficiently produce?" Ultimately, this helps define how the company will fit into its environment. [...]
[...] The planning process is a structured process that leads to long-term development of strategies. The Plan is often to develop strategies. However, the term was invented to put the item on a comprehensive, integrated process that considers the internal and external variables of organizations, the vision, mission, goals, internal functioning, culture, and structure. In short, strategic management allows decisions and taking action which result from the formulation and implementation of plans to achieve the designated goals. Bibliography Works J. GERRY and S. Hevan: Strategic. Union published 2000 edition. [...]
[...] As captain of his ship, he ensures full responsibility for the development and demonstration of strategic plans for the entire organization, and this, although other executives participate in these activities. The CEOs Division heads of a segregated society also play a key role in the strategic management process. Commonly a general manager is responsible for an organization or division. For example, it is for leaders of each of the affiliates of BCE to ensure success. These managers must determine their business strategy, design the structures required to implement their strategic plans and evaluate results. [...]
[...] The intervention of service personnel planning does not lead to the development or implementation of strategies, but rather to assist policy makers: - By conducting economic studies and market research; - By coordinating all activities related to planning; - Actively contributing to the planning process; - Preparing consolidated operational and financial plans; - By evaluating the costs and benefits of any proposed merger, by analyzing the possibility of acquiring companies, measuring market trends, and working to launch new products or services and carrying out studies of liquidations. Conclusion Strategic management is a multidimensional concept, which plays an important role for the survival and sustainability of the company. Without a business strategy an organization's growth is not ensured. Indeed, strategy is a process of goal setting and fixing means which may be used to benefit from a favorable position compared to competitors, the concept is very similar compared to that of strategic management, a strategy undeniably passes a planning process. [...]
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