Strategic management is important for many companies as it helps to achieve overall objectives. The concept of strategy takes into consideration the concept that helps to do future planning. Strategic management is related to implement the goals and initiatives taken by the organization. Strategic management also helps the companies to identify and capitalize the core competencies so that the operations can be conducted smoothly. Strategic management is the process where managers create long-term direction goals and also specific objectives are set so that the employees follow it in a proper manner (Rothaermel, 2015). The basic steps of strategic management are: To specify the objectives of the organization, develop policies and plans and also to allocate the resources so that the policies can be implemented. So, it can be analyzed that strategic management is a combination of strategy formulation and implementation. Strategic management helps to give right direction to the organization.
Strategic management is the process by which the managers take into consideration long-term adaption so that the competitive strategy can be implemented and developed. Strategic management is not a simple process but it is complex in nature. Its complexity is discussed by considering three reasons like strategic management helps to make proper decisions as future is uncertain So it helps to consider a high degree of uncertainty. The managers in various departments have different priorities and it takes into consideration integrated approach that is very difficult to achieve. Strategic management has the capability to manage all the operations of the organization and also has the capability to present informatics products to the individual (Wheelen, Hunger, Hoffman & Bamford, 2017).
Theories that are related to strategic management are a resource-based theory in which the company is a bundle of resources and capabilities that are made up of physical, financial and human assists of the company. The theory considers that resources are not homogenous and are limited to mobility. The company can easily translate the resources and capabilities so that competitive advantage can be attained. Strategies assist the managers to guide the employees so that the practice can be understood easily by the organization (Hill, Jones & Schilling, 2014).
A pestle analysis is also the theory that comes under strategic management. It involves economic, social, technological, legal and environmental factors. For example: If an organization has the policy to develop new products that are good for marketing then it will help to save energy and resources on new products. Strategies and policies should be effective so that the activities of the organization can be conducted smoothly (Ethiraj, Gambardella & Helfat, 2017).
So, it is seen that every organization should consider strategic management so that positive results can be achieved and company can easily achieve profitability in an effective manner. Strategic management also makes changes in the operation of the organization. Changes are in economic conditions, trade practices, and technology. So it is important for the organization to implement the change in a proper manner so that the activities can be conducted smoothly and also helps to achieve overall profitability in an effective manner.
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2017). Reviews of strategic management research. Strategic Management Journal, 38(1), 3-3.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.