Strategic management is the process of defining and implementing procedures and objectives that set an organization apart from its competition. It involves managing an organizations resources, analyzing internal and external forces, and developing strategies to realize goals and objectives. The key features of strategic management include:
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Formulation and Implementation: Strategic management involves the formulation and implementation of the major goals and initiatives taken by an organizations managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates.
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Setting Objectives: Strategic management provides overall direction to an enterprise and involves specifying the organizations objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans.
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Analyzing the Environment: Strategic management involves analyzing the competitive environment and the internal organization to evaluate strategies and ensure that management rolls out the strategies across the organization.
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Feedback Loop: Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.
Strategic management is a skill that can be developed as someone gains experience and adopts a strategic mindset. It is considered part of business acumen, though it can also apply to fields like non-profit, government, and the public sector. Theories of strategic management include prescriptive approaches that outline how strategies should be developed, while others focus on the process of strategic management from start to finish. The benefits of strategic management include financial and nonfinancial benefits, such as helping an organization and its leadership to think about and plan for its future existence, fulfilling a chief.
