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Strategic Management : Its Definition and Importance to the Organization
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.