ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Strategic Management : Its Definition and Importance to the Organization

Updated on April 25, 2012
savior profile image

Christopher F. Bueno is currently the Dean of the College of Education, University of Northern Philippines, Vigan City.

The strategic management defines in many ways according to business variables on: the management process and functions; environment scanning ; turbulent environment; collective processes; strategic plan; and organization road map that will extensively and comprehensively expound the applicability of this concept to the corporate world.

1. It is the management process through the formulation, organization, execution and evaluation of the organizational resources to meet the desired goals in the future. This definition provides an assessment as to the management process and functions of the different levels of managers on how the formulation of the organizational goals, the designed structure and systems, the strategic position to implement the quality assurance program and evaluate the designed systems of improvement.

2. The systematic study of the environmental analysis of the competitors and customers to provide an optimum profitability of the investment in the organization. This definition emphasizes the environmental scanning of the internal environment (materials, manpower and financial resources) and external environment (political, economic, technological and cultural factors) that may lead to optimum profitability once address the strategic plan of the organization.

3. It deals with the study of the turbulent environment in business to properly utilize the material resources of the company to enhance its competitive advantage in the local and global market. This definition focuses on the concept of turbulent environment which means the erratic and changing environment condition that may affect the business particularly on political, economic and technological factors.

4. It undertakes the collective processes to create a strategic analysis as the basis for managers to decide and act on how to sustain the competitive advantage of the organization. The definition provides the management support on the collective process along the levels of management with synergy and complementation to get the desired competitive advantage of the organization.

5. It is the formulation of the strategic goals, mission, objectives, strategies and programs to ensure that the environmental analysis creates competitive edge to capture the bulk of customers in the market. This definition explains the strategic management plan as integrated and fused but the external and internal environment.

6. It is the organizational road map for the corporate and business managers to asses the strategic situation of the organization and formulation of a strategic plan in order to enhance the competitive advantage of the business. This definition provides information as the use of organizational road map as the business strategy to implement the strategic plan of the organization.

Importance of Strategic Management

The importance of strategic management explains corporate significance along strategic situation of the market forces; strategic tools for a competitive advantage on e-commerce, information technology and emerging business technologies; organizational review of strategic directions; strategic directions of the alternative course of action; and alternative course of action on the expected turbulent environment.

1. It is to understand the strategic situation of the market forces such as the supplies, competitors, regulatory measures, economic and financial systems to position for the competitive advantage in the market. It reflects the critical analysis of the market forces on the environmental situation as to the presence of the processing of raw materials, competition in the market, market regulation, and financial viability of the business.

2. It develops strategic tools for a competitive advantage in the e-commerce, information technology, and emerging business technologies as the front-line of environmental market forces. It determines the application of the emerging business and informational technology to respond the market forces in the corporate world.

3. It ensures the organizational review of the strategic directions on the basis of the competitive and turbulent environment and market demands. It responds to the need for the organizational review on the strategic directions of the organization.

4. The strategic identification and formulation of the alternative course of future action along the shared values , missions and goals of the organization that will cushion the massive strategic change to cope up with the environmental change in the market. It identifies the alternative courses of action to respond the need of the environment.

5. It has to provide the strategic direction as the alternative options on the expected turbulent reactions of the environment particularly the political and economic factors in the service area .It imposes alternative option to survive the turbulent reactions in the market.


    0 of 8192 characters used
    Post Comment

    • profile image

      qazi obaid jadoon 

      5 years ago

      it's a nice way to learn here...

    • profile image


      6 years ago

      this help me for future


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)