The Nature of Strategic Management

Table of Contents

Introduction 1

Key terms in Strategic Management 3

The Strategic Management Process 9

Stages of Strategic Management process 11

Strategy formulation 11

Strategy implementation 12

Strategy evaluation 12

Benefits of strategic Management 13

The challenges to strategic management 14

Why some firms do no strategic planning 15

Guidelines for effective strategic management 16

Conclusion 18

REFERENCES 19

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 organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry (Chen and Vijayaram, 2013).

Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage (Bhatt, 2016).

It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving (Bhatt, 2016).

Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement. (Bhatt, 2016).

Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into...