A couple of definitions on STRATEGIC MANAGEMENT
1. Discharges Responsibility
The process of strategy formulation satisfies the expectation from shareholders, stakeholders and the general public at large, that a strategically managed organization will discharge its duties successfully.
2. Allows an Objective Assessment
Strategic management provides a CONTROL that allows the senior management team to take a step back from the day-to-day business and CONTEMPLATE about the future of the organization.
3. Faciliatates to Make Wise Business Decisions
Strategy provides the framework within which EXECUTIVES at lower and middle levels can make day-to-day operational decisions that are aligned with the accomplishment of the organization’s goals.
4. Enables Understanding and Improves co-ordination between different departments
Allowing participation in the strategic management process enables better understanding of the direction, why that direction was chosen, and the associated benefits. Good strategy formulation and communication process are vital steps in enabling effective and efficient strategy deployment.
5. Simplifies Measurement of Progress
Strategy sets the direction and empowers an organization to bring into line its objectives and performance measures. These objectives and performance measures allow meaningful information to be provided to decision-makers regarding the organization’s progress through such tools as scorecards and dashboards.
6. Enhances Strategic Agility (Innovation)
When a firm can successfully capitalize upon opportunities resulting from unanticipated and significant change, it is said to be innovative as it has a competitive edge over other firms.
7. Ensures Allocation of Resources:
The limited resource is properly allocated to different functional levels so as to create value for all stakeholders. A targeted approach to markets and opportunities obviously strengthens your bottom line.
A simple representation will make your understanding better:
OF OTHER’S VIEW
OF WHAT THE FIRM IS DOING
TO ACHIEVE OBJECTIVES
TO IMPLEMENT STRATEGIES
TO WORK HARD
ALL MANAGERS AND EMPLOYEES ON A SINGLE MISSION TO HELP FIRM SUCCEED