Strategic Management

Definition of Strategic Management

"Strategic Management can be defined as the art and science of Formulating, Implementing and Evaluating cross functional decisions that enable and organization to achieve its objectives."

As this definition implice SM focus on Integrating management, Marketing, Finance, Production, Research & Developement and computer information system to achieve organizational success.

Stages Of Strategic Management

 Strategic Management consist of 03 stages

1. Strategy Formulation
2. Strategy Implementation
3. Strategy  Evaluation

01.Strategy Formulation

This Includes Developing Vision & Mission, Identifying an Organizations external opportunities and threats determining, Internal strengths & weaknesses establishing long term objective generating alternative strategy and choosing particular strategy to per sure.

02.Strategy Implementation

Requires a firm to establish annual objectives policies, motivate employees and allocate resources.So that formulated strategies can be executed.Strategy implementation includes developing a strategy supporting culture,directing an effective organizational structure, redirecting marketing efforts, preparing budjects and developing information systems and linking employee compensation to organizational performance.Strategy Implementation is called as the "Action Stage".

03.Strategy Evaluation

Is the final stage in strategic management.Managers need to know when particuler strategy are not working well to get information about it.Strategies are subject to future modification.Because external and Internal factors are constantly changing.There are 03 fundamental strategy evaluation activities.

1. Reviewing external & Internal factors
2. Measuring performance
3. Taking corrective action