Scope of Strategic Management
Scope of Strategic Management
- Strategic management is well-organized approach that is based on effective principles and process of management to recognize the corporate objective, or mission of business. It establishes suitable target to assure the objective, identify existing opportunities and restraints in the environment, and develop a logical realistic process to accomplish company objective.
- Strategic management is both the process and beliefs to determine and control the organizational affiliation in its vibrant environment. It is a process to describe approaches and procedures to help management become accustomed to the current business environment through the use of objectives and strategies.
- As a philosophy, it changes the viewpoint of manager to deal with competitors, customers, markets and even the organization itself. Its purpose is to motivate management’s wakefulness of the strategic implication of environmental events and internal management.
- Theoretical review: Strategic management in literature is thoroughly described by several theorists. In the beginning of 1980, Glueck (1984) explained Strategic Management as “a stream of decisions and actions, which leads to the development of an effective strategy or strategies to help achieve corporate objectives”. Another group of theorists like Hofer and others (1984) stated that strategic management is “the process which deals with the fundamental organizational renewal and growth with the development of strategies, structures, and systems necessary to achieve such renewal and growth, and with the organizational systems needed to effectively manage the strategy formulation and implementation processes”. According to Sharplin (1985), strategic management is “the formulation and implementation of plans and carrying out of activities b relating to the matters which are of vital, pervasive or continuing the importance to the total organization” Lawrence and William (1988) delineated strategic management as a stream of decisions and actions, which leads to the development of an efficient strategy or strategies to help achieve corporate objectives.
- Copious studies have shown that the strategic management process is the technique in which strategists decide objectives and take effective strategic decisions. Main concentration of strategic management is the accomplishment of organizational goals taking into consideration the internal and external environmental factors.
- Porter (1985) squabbled that the spirit of formulating comprehensive strategy is associated with company to its environment. Strategic management allows the systematic management of change. It facilitates organization to decisively organize resources towards a desired future. Chandler (1962) also speculated that any successful policy is dependent on structure, to accomplish any effective economic performance. The organization needs to change its structure. In the decade of 1998, Harrison and St. John (1998) explained the concept of Strategic Management as “the process through which organizations analyse and learn from their internal and external environments, establish strategic direction, create strategies that area intended to help achieve established goals, and execute these strategies, all in an effort to satisfy key organizational stakeholders”.
It is appraised that several theorists have dissimilar viewpoint for the notion of strategic management but there are several common elements in the way it is understood. Strategic Management is regarded as either decision making and planning, or a set of activities interrelated to the formulation and execution of strategies to accomplish Organizational Objectives. It is also set of managerial decisions and actions that decide the long term performance of firms. It comprises of Strategic Intent, Environmental scanning (both internal and external), and strategy formulation (strategic planning), strategy implementation and evaluation and control. It can be recognized that Strategic Management is the process by which an organization try to establish the ways by which company can accomplish long term goals.
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