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In every organization management plays an important role in the survival of the business. Management means the art of getting things done from others so that an business organization can perform and survive in a smooth manner. When we discuss about management one important term comes into existence i.e. strategic management. Strategic management helps to solve the goals and objectives of the organization set up by the top level of management. Generally this objectives are carried out on behalf of owners after considering all the factors prevailing in the business environment whether internal factor or external factor. Strategy means planning in advance all long term goals and allotment of all necessary resources so that all the long term planning can be achieved. As long term plans are decided in advance and all the policies are framed according to the decided plan so it provides consistency in the organization.
Since strategic management gives the path to the organization so all the policies and guidelines are framed for the organization keeping the enterprise objectives in mind and all the factors prevails in the business environment. It develops plans and later on such plans are implemented in the organization so the set objective can be achieved.
Strategic management covers two major processes i.e. framing of strategy and implementation of strategy.
Framing of Strategy
Framing of strategy means study of business environment in which business has to operate than making a strategic decisions that how business will fight in such environment. Study of business environment includes the following points
It studies the strength and weakness of the organizations.
It studies the strength and weakness of competitor.
It studies political, economical, technological, social and legal environment of the business.
Bargaining of the consumer.
Implementation of Strategy
It is the second important process of strategic management. It involves the decisions regarding the policies framed to carry out the objectives of an enterprise. It covers the basic decisions that how to allocate the resources so that the objectives can be achieved. It includes the following points
How to allocate the resources of an organization.
Who will lead the team to carry out the set goal.
Importance of Strategic Management
Since without a strategy an organization cannot operate so strategic management is very important factor as it can make the future of the company in their field of operation. It brings growth in the business enterprise because it analysis the future business opportunities which an organization can grab. It provides clear direction to the company and helps to remove hindrance faced by the organization to carry out the day to day activities of the business. It also helps to maintain the reputation of the business as consistency brings continuous success to the organization. It analysis the threats available in the external environment. Thus through strategic planning an organization can work to remove such threat or can convert threat into opportunities.
Limitations of Strategic Management
As there is a advantage of advance strategic planning there is some limitations also. Since the strategic planning is based on future and helps to provide consistency. But sometimes there is a difference in planned performance in comparison with actual performance. Because our strategy does not succeed in the present environment.
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