'Management is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. Management also includes recording and storing facts and information for later use or for others within the organization. Initially strategic management was a part of strategic planning which is now a main instrument of it. Strategic planning is incorporated with strategic management which unites both planning and management in the same process (Porth, 2002) Now strategic management has become one of the most prominent areas of management.
Strategic Management - An Introduction
Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats.
Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.
It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving.
Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement.
Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task. They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management. Thus the employees can judge the impact of such changes on their own job and can effectively face the changes. The managers and employees must do appropriate things in appropriate manner. They need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well. Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization.
Following are the important concepts of Strategic Management:
Strategy - Definition and Features |
Components of a Strategy Statement |
Strategic Management Process |
Environmental Scanning |
Strategy Formulation |
Strategy Implementation |
Strategy Formulation vs Implementation |
Strategy Evaluation |
Strategic Decisions |
Business Policy |
BCG Matrix |
SWOT Analysis |
Competitor Analysis |
Porter’s Five Forces Model |
Strategic Leadership |
Corporate Governance |
Business Ethics |
Core Competencies |
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Authorship/Referencing - About the Author(s)
The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
Updated September 26, 2017
Jupiterimages/Goodshoot/Getty Images
Updated September 26, 2017
Strategic marketing management implements your company’s mission through focused processes to get the most out of your existing marketing plan. It entails identifying your target customers. This type of management may help discover other marketing opportunities. Strong and strategic marketing plans may be built from this style of management. Most importantly, it helps your company transform plans into reality.
Benefits Of Strategic Management Pdf
Identify Target Customers
Strategic marketing management is fundamentally designed around your target customer. Identifying your target customers will generate more profits and helps to establish a loyal customer following. Strategic managers will study your vertical and horizontal markets to generate ideal customer profiles. The profiles can then be used to tailor marketing programs. These customized marketing ideas may deliver more compelling core messages that, in turn, increase your company’s revenues.
Uncover Strategic Marketing Opportunities
Employing strategic marketing management may generate additional opportunities. Strategic managers may organize your marketing team to seek out business challenges in your industry. By matching your company’s strengths and resources to the newly discovered challenges, managers can create new revenue opportunities. This system of management may identify solutions to problems that your competitors are not aware of. These insights can be used by strategic marketing managers to develop competitive advantages.
Build Strategic Marketing Plans
Strategic marketing management also involves building plans that leverage insights on your markets, customers and competitive advantages. Strategic marketing management helps your team to develop a marketing plan that concentrates on maximizing results by focusing on your company’s competitive advantages and amplifying them. Some plans may even call for products to be redesigned to further cater to your target customers. Strategic management installs goals designed around your team’s market research.
Marketing Plan Implementation
At the core of strategic marketing management is effective plan implementation. Executing strategic marketing initiatives involves giving useful and frequent feedback to your team to keep them progressing towards goals. Moreover, it constantly adjusts the current marketing mix to maximize profitability. Once milestones are achieved, strategic managers may further dissect the process to identify success catalysts and incorporate those methods in other marketing opportunities.
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