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Business Studies

Strategic Management: Application, Process, Importance

Management is a technique of outlining, decision making, coordinating, leading, encouraging, and controlling the human resources, financial, physical, and information resources of an organization to realize its goals efficiently and effectively. Strategic management indicates a special branch of management that deals with an organization’s strategic objectives. This may include the advancement of the organization’s vision, outlining its operational purposes, and coming up with and enforcing the organization’s strategies. It may also include the formulation and application of various corrective measures where mandatory. 

When it is the time of applying strategic management, 5 processes should be followed in chronological order. 

Goal setting

This is necessarily defining the organization’s vision. The vision will combine short-term and long-term objectives, the processes by which those can be adept, and the persons responsible for enforcing each task that concludes in the set goals.

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Analysis

The analysis involves collecting the data and information that is suitable to accomplish the set goals. It also encloses understanding the needs of the organization in the market and examining any internal and external data that may modify the organization’s goals.

Strategy Formulation

The only way for a business to succeed is if it has the resources required to accomplish the goals set in the first step. The procedure of formulating a strategy to gain this may involve analyzing which external resources the business needs to succeed and which goals must be prioritized.

Strategy Implementation

Since the goal of the strategic management process is to push an organization to its objectives, an implementation plan must be put in place before the technique is considered viable. Everyone in the organization must figure out the process and know what their duties and responsibilities are to fit in with the organization’s comprehensive goal.

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Evaluation and Control

The evaluation and control actions for the strategic management process combine performance appraisal as well the constant review of both internal and external matters. Where required, the management of the organization can implement restorative actions to ensure the success of the strategic management process.     

Now the question arises ‘ why is it important?’ The primary objective of the strategic management process is to help the organization to achieve viable strategic competition in the market. When properly accepted and applied, the strategic management process creates value for the organization by concentrating on and determining opportunities and threats, then leveraging its vitalities and fragilities to help it exist, grow and develop as well as. Strategic management process can help an organization achieve this by:  

 

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  1.   Acting as the credentials for any major agreements of the organization. 
  2.   Regulating the business to draft its future and move in that path. The strategic management process involves formulating the organization’s objectives, fixing realistic and achievable objectives, and ensuring that they are all associated with the company’s vision. 
  3.   Assisting the business to become anxious, not psychic. With the strategic management process, the business can figure out the competitor’s actions concerning market trends and come up with the steps that must be taken to challenge and succeed in the market. 
  4.   Developing the organization for any potential challenges and exploring possible opportunities that the organization must pioneer in. The strategic management process steps also involve analyzing the best ways to overcome the challenges and exploiting new opportunities. 
  5.   Assuring that the organization copes with the challenges in a dynamic environment and outlasts in an uncertain market. 
  6.   Helping in the apperception and maximization of the organization’s challenging advantages and core competencies. These are responsible for the business’s durability and future growth. 

 

So it is clear that the strategic management process is really helpful for any organization.

 

Written By,

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Md. Istiak Ahmed

Faculty Of Business Studies 10th Batch

Department Of Management

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Session: 2019-2020

Mawlana Bhashani Science And Technology University, Santosh, Tangail.

Email: istiak4400@gmail.com           

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