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What is Strategic Management?

 Strategic management is a term used to describe the process of developing and implementing long-term plans to guide an organization’s growth. Strategic management helps organizations make decisions to improve performance, set goals, and make changes. Strategic management is about making the right choices for an organization at a given time in its development. For this reason strategic managers need to be good at both long-term thinking and short-term planning.

 Types of Strategic Management

  1. Strategic Management and Corporate Planning:

Corporate planning is the process of creating a business plan that provides a detailed analysis of an organization’s future plans, based on its current position and objectives. 2. Strategic Management and Organizational Strategy & Change:

Organizational strategy is the process of designing an organization to be able to meet its objectives, within various market conditions.

  1. Strategic Management and Strategic Thinking:

Strategic thinking is the mental process by which an individual arrives at judgments about how to address specific problems or opportunities within their area of responsibility.

  1. Strategic Management and Research Methods:

Strategic research methods include the process of identifying important issues, questions or problems to be solved.

Strategic Management Is Of Great Importance In The Following Ways:

  1. It ensures organizational cohesiveness. Strategic management requires the close attention of all stakeholders, including board members, senior managers, and employees alike. Decisions made through strategic management are done so knowing what the impact will be on each person within the organization. If this is not done in a direct manner then decisions may reveal themselves to be counterproductive in light of other actions being taken within the organization.
  2. It encourages the implementation of innovative ideas and strategies. Strategic management demands that all employees, regardless of position and rank, are able to submit viable ideas and strategies that can contribute to the success of the organization. This allows for a dynamic environment where everyone is able to contribute on some level and become a decision maker in the overall strategic process.
  3. It fosters an open line of communication between stakeholders at all levels in an organization. Strategic management requires communication at all levels during the decision making process, which means this occurs even between executives and subordinates. In order for this to occur it is necessary that an open line of communication be established between all stakeholders.
  4. It helps ensure that decisions made reflect the values and goals of the organization. Strategic management is constantly seeking ways to improve profitability and reduce loss and risk. These factors are very much in line with the values and goals that companies seek when they first establish themselves as separate entities. By ensuring strategic management at all times, it ensures these values and goals are always reflected in any decision making process affiliated with the organization.
  5. It is conducive to expediency in decision-making. Strategic management involves the implementation of decisions and actions that will reduce the time it takes to get products and services to market. If this is not achieved then the organization will suffer because consumer demand will eventually become obsolete or demand may diminish due to lack of demand as a result of a poor decision making process.
  6. It fosters continuous improvement. The decisions made employing strategic management are constantly monitored and improved upon based on their performance. This is the only way to ensure that a decision making process properly reflects the goals of the company and will always be successful in achieving them.
  7. It ensures that an organization’s goals are achieved effectively. Strategic management requires that decisions be made based on an overall understanding of the goals of the organization as a whole. This understanding should include a complete understanding of both the short and long term goals that the company will want to pursue in order to reach them.
  8. It ensures that decision-makers are knowledgeable about their actions. Strategic management requires that decision makers be well versed on how their decisions will impact their organization and its stakeholders as a whole. It is for this reason that strategic management encourages all employees, no matter what position or rank they hold, to participate in the strategic process with open minds and an open line of communication.

Units/ Courses Studied Under Strategic Management Includes:

a) Business Strategy

  • Organization Strategy
  • Enterprise Resource Planning (ERP) and Business Intelligence (BI) Systems.
  • Human Resource Management in a multi-functional environment (HRM)

b) Strategic Planning

  • Senior Management (supervisor of staff)
  • Staff Workforce and Leadership development
  • Organisational Culture and Values.
  • Workplace Relationships and Communication.
  • Workforce Planning and Migration issues.

c) Financial Strategy & Analysis

  • Overall financial performance planning
  • Capital Budgeting
  • Management Information Systems (MIS) & HRMS
  • MIS systems and applications based on ERP/BI Systems.
  • HRMS and Portals.

e) Strategic Human Resource Management

  • Staff Selection and Development
  • Leadership at all levels
  • Supervisory Relationships and Discipline etc.
  • Management of Internal Staff.

f) Marketing Strategy & Analysis

  • Marketing Research
  • Planning and Administration
  • Branding & Communication of products etc.
  • Organizational Marketing and Promotional Strategy etc.

g) Organisational Change Management

  • Change and Industrial Relations
  • Workforce Responses to change etc.

h) Strategic Technology Management

  • IT Strategy
  • Implementation and Administration
  • Impact of technology on business operations
  • Security in a Network and Cloud Environment.

i) Corporate Governance & Risk Management

  • Corporate Governance
  • Internal Auditing & Control Function
  • Risk management throughout the corporation etc.

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