STRATEGIC MANAGEMENT Meaning and
Definition
-
Strategic management is the process of formulating, implementing, and evaluating decisions and actions aimed at achieving the long-term objectives and overall goals of an organization. It involves setting goals, developing strategies, and making strategic choices to gain a competitive advantage in a dynamic and uncertain business environment.
At its core, strategic management involves a systematic and integrated approach to analyzing internal and external factors that affect an organization's performance. This includes assessing the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis) as well as evaluating industry trends, market conditions, and competitor strategies. Based on this analysis, strategic managers identify strategic options and develop plans and tactics to effectively position the organization in the marketplace.
The implementation of strategic initiatives requires effective coordination of resources, allocation of tasks, and monitoring of progress. Strategic managers play a crucial role in aligning the organization's structure, culture, and processes with the strategic objectives to facilitate the successful execution of strategies. They also evaluate the outcomes and impact of strategic decisions through performance measurement and continuous improvement processes.
Strategic management is essential for organizations as it helps them adapt to changing environments, identify growth opportunities, and effectively allocate resources. It provides a framework for making informed decisions, optimizing organizational performance, and driving sustainable competitive advantage. By integrating long-term planning, dynamic decision-making, and effective execution of strategies, strategic management enables organizations to navigate challenges, capitalize on opportunities, and achieve their strategic objectives.
Etymology of STRATEGIC MANAGEMENT
The word "strategic" originates from the Greek word "strategos", which means "general" or "commander". In ancient Greece, strategoi were military leaders responsible for developing and executing plans to achieve their objectives.
The term "management" has roots in the Latin word "manus", meaning "hand", and "agere", meaning "to act". It refers to the act of handling or controlling something.
The combination of these terms, "strategic management", was first introduced in the 1960s and became popularized in the field of business and organizations. It signifies the process of developing and implementing strategies to achieve organizational goals and objectives effectively.
