Strategic management involves the formulation and implementation of major goals and initiatives by an organization’s managers on behalf of stakeholders. It considers available resources and assesses both internal and external environments.

In simpler terms, strategic management is about making informed decisions to position an organization for success in a competitive landscape.

Key Elements of Strategic Management:

Setting Objectives: Organizations define their long-term goals and objectives. These objectives guide decision-making throughout the strategic management process.

Environmental Analysis: Organizations analyze both internal (strengths, weaknesses, resources) and external (market trends, competition, regulatory factors) environments.

Strategy Formulation: Based on the analysis, organizations develop strategies to achieve their objectives. These strategies can be prescriptive (analytic process-driven) or descriptive (general guiding principles).

Strategy Implementation: This phase involves rolling out strategies across the organization. It includes resource allocation, organizational structure adjustments, and communication.

Evaluation and Control: Organizations continuously monitor progress, assess performance, and adjust strategies as needed.

Schools of Thought in Strategic Management:

Prescriptive Approach: This approach outlines how strategies should be developed. It emphasizes rigorous analysis and considers all threats and opportunities.

Descriptive Approach: Here, the focus is on how strategies should be put into practice. It recognizes that strategies may evolve based on practical considerations.

Balancing Act: Effective strategic management combines both approaches, considering culture, employee competencies, and organizational structure.

Flexibility and Adaptability:

Organizations must adapt to changing business environments. Flexible companies find it easier to adjust their strategies, while inflexible ones may struggle.

Creating a bridge between strategy development and implementation helps ensure efficient goal achievement.

Collective Effort and Learning:

Strategic management isn’t solely the CEO’s responsibility. Ideas can come from lower-level managers and employees.

Learning from past strategies and understanding the broader environment informs future strategies.

Internal and External Communication:

Effective strategic management extends to communication practices. Clear communication ensures alignment with strategic goals.

Tracking progress against the strategic plan ensures that the organization stays on course