The importance of strategic management arises from its role in ensuring optimal use of resources, achieving a competitive advantage and long-term growth of the company.
Strategic management is an integral part of corporate management and must therefore take into account constraints such as conflicting interests of groups that affect the functioning of the company, financial barriers, resource constraints, lack of information, strategic potential, skills shortages and expected changes in the company.
Strategic management is an area of knowledge and specific practical activities. It differs from traditional approaches and management methods. It relates both to the competitors, resources, as well as to the functions and goals.
Managers play a key role in a company's strategy. You must take responsibility for formulating strategies for gaining competitive advantage and for executing those strategies. You need to lead the process of creating strategies.
There are two main types of managers:
Managing Director - You are responsible for the overall performance of the company
Function manager - They are responsible for overseeing a specific function, such as a task, activity or process such as accounting, marketing, research and development.
Managing directors have profit and loss responsibility for a product, a company or the company as a whole. They are responsible for deciding how to create a competitive advantage and achieve high profitability thanks to the resources and capital at their disposal.
Strategic management model
The most important elements of strategic management:
- Environmental analysis carry out
- Establish organizational direction
- Formulate organizational strategy
- Implement organizational strategy
- Establish assessment and control strategy
Strategic management is a dynamic and continuous process. The main models differ mainly in the level of detail, in the detail and in the complexity. These differences result from different backgrounds and experiences. Strategic management includes strategic thinking and the associated concepts of strategic planning.
Strategic planning is analytical; it refers to formalized procedures for creating the data and analyzes that serve as input for strategic thinking. Strategic planning takes place within the framework of strategic thinking or strategy development. Planning can also refer to the controls that will be used to implement the strategy (once it is established).