Strategic Management : Its Universal Definitions in Management
The strategic management is a management tool in business, enterprise and corporation that responds to the turbulent environment and the changing social, technological, economic and political factors to remain its competitive advantage and enhance the organizational productivity and performance. It has to respond the dynamic organizational analysis for the return-of-investment, sound financial management and profitability, and innovative expansion and aggressive marketing in the highly competitive business in the corporate world.
These are the definitions of STRATEGIC MANAGEMENT based on the concepts and principles of the organizational development, processes and systems relevant for the academic discussion in business administration:
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.
The competitive advantage and responsiveness of the organization requires understanding the strategic management process to meet the desired goals in the future. It has to embark on the formulation of the desired organizational goals along the philosophy, vision, shared values and aspiration of the different levels of the organizational units. This will be taking off point to organize and redirect the business strategies as could work on the turbulent environment that would experience by the organization.
2. The systematic study of the environmental analysis of the competitors and customers to provide an optimum profitability of the investment in the organization.
The turbulent environment means the unpredictable and changing business activities that might lead to the corporate down swing and low level of profitability in the business. This is the reason to pursue a systematic study of the environmental analysis as to the marketing promotion program, quality assurance and competitive advantage of the competitors. It has to study the customers’ behavior in the market based on the respond of the political, socio- economic and technological factors. It has to come up with marketing strategy to capture the clients’ satisfaction.
3. It deals with the study of the turbulent environment in business to utilize the material resources of the company to enhance its competitive advantage in the local and global market.
The critical PART in the sustained business viability comes to how the organization withstands the turbulent environment particularly on the global recessions, economic down turn, emerging technology application in business, and other global market. The material resources in the internal environment must shake up with innovative organizational vision and values to attract the clients in the packaging of the business strategies will enhance the competitive advantage in the market. What is important in this definition is the packaging of materials and market promotion to be able to capture the bulk of demand in the product and service line.
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 collective process in the strategic analysis is to address the specific business design on goals, vision and shared values in the different management levels and functions in the organization. The management levels such as corporate managers, general managers, department managers and division managers have to exclusive defined the organizational vision and shared values within the general goals as the basis to decide and act as to the strategic direction sharing its unique degree of work levels and functions to contribute a synergy productive performance. The collective effort on its distinct specialized levels of work provides a comfort zone for the competitive advantage of the entire 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.
The concept of strategic management deals so much as to environmental analysis of the product design and service-oriented work on quality satisfaction of the clients. It has to pass by the strategic formulation of the organizational goals, vision, mission, values, objectives, strategies and programs to provide better business opportunity for the clients and customers.
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.
The blueprint of the management levels output on the strategic plan is what we call the organization road map. It is a strategic design based on continuous improvement, paradigm shift and benchmarking on product and services to enhance the competitive advantage.