Definition of Strategic management

Strategic management is a set of management involves in achieving the set goals and objectives of an organization.

Strategic management involves the standard following five set of steps:

1. Setting goals
2. Analysis
3. Strategy Formulation
4. Strategy Management
5. Evaluation and Control

Brief Explanation of Strategic management

SETTING GOALS: This set of strategic management involves setting goals of the company and steps to achieve them.

–  The objective of goal settings is to set the vision and mission of the company

–  Goals can be short term and long term.

–  Also identify the processes and steps to achieve them.

ANALYSIS:

• Analysis can be external and internal both.
• Doing Market research, gathering data and information to achieve the mission.
• Understanding the need of industry, business and market.
• Check the issues which may affect the business goals and objectives.

STRATEGY FORMULATION:

After the goals are defined and analysis is done the next step is to formulate a strategy to achieve them.

• This involves required resources both external and internal.
• Prioritize the goals according to their importance.

STRATEGY IMPLEMENTATION:

When the goals are defined, analysis are done and plan is form, it is now time to implement that plan.

• It includes assigning responsibilities, resources, guiding and training etc.

EVALUATION AND CONTROL: When strategy is implemented the results finally are out.

This is now time to evaluate the results, compare with the set standards and check the variances, also their reasons.

• When reasons are identified control should be implemented and analyzed next time.

BENEFITS OF STRATEGIC MANAGEMENT:

• Clarifying goals and objective and hence whole picture of what jobs to perform.
• Continuous analysis reduces the defects and errors.
• Cost reduction in long term.
• Market sustainability and competition  
• Empowering every level of employees in the company and hence giving them importance and sense of responsibility.
• Innovation and development.
• Allocation of budget in effective manner and less wastage of money.
• Company goal liaising.