Definition of Strategic Management varies from different scholars and it was first used in the military science. When applied in business strategic management is referred to as the determination of the long-term goals and the objectives of an enterprise and adaption of right course of action and allocation of resources to carryout those goals. Business Training in Kenya has more articles.
How can organization can succeed: Definition of Strategic Management
Definition of Strategic Management also can be termed as the art and science of formulating, implementing and evaluating cross functional decisions that enable the organization achieve its objectives.
Definition of Strategic Management as above implies strategies that management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, computer information system to achieve the organizational success. Definition of Strategic Management enables the top management to define the major goals and objectives of the organization, the designs, plans and organizational structure to achieve the organizational objectives in response to the volatile environmental conditions and the dynamic organizations resources. Definition of Strategic Management in general enables the top managers to analyze its internal and its external environment.
Strategic management looks at the role of the top executive on how they deal with the major intended and emergent initiatives on behalf of the owners, involving the efficient and effective utilization of resources to enhance the firm’s performance in their external environment and their thei nternal environment. Strategic management can be used to determine the mission and the vision of the organization.
Uses of Definition of Strategic Management
Definition of Strategic Management enables us to understand the following;
- What kind of business are we in? ( mission)
- Where are we going? (vision)
- How do we get there? ( strategy)
- Are we on the right truck? (evaluation/ feedback)
Strategy refers to a plan of action invented to achieve or attain a desired goal. In the business world it’s a method of competition in general for its plans to succeed. Strategy is significant in strategic management and is the drive after watching carefully the position or moves and actions of the competitors.
Strategy ranges in different levels in the organization which includes;
- Corporate strategy which is concerned with the overall business operations to meet the stake holder’s expectations.
- Business unit strategy which is concerned with how a business competes in the market. The SWOT analysis needs to be done in a detailed form.
- Operational strategy focuses on issues of the resource, processes, people or in general how things are run in the organization
Definition of Strategic Management: Vision and Mission of a Company
Definition of Strategic Management by the top management will know the ground they are playing into. This will enable them to be able to create a picture of where they want the organization to be in the future. This answers the question of where are we going?
Vision is defined as a business statement that describes what we want to become in the future. It’s considered as the first stage in planning.
For the mission of an organization, the Definition of Strategic Management as mentioned earlier involves the top management. The management plans on the specific business of the organization that will bring its success in the future.
Conclusion in Definition of Strategic Management
Definition of Strategic Management ideally is essential for the managers to first understand it before they engage in any form of planning. In defining strategic management managers should bear in mind that any slight mistake can lead to collapsing of an organization because if they will not understand what is entailed in strategic management will lead to poor planning thus the importance of clear Definition of Strategic Management.