Strategic Management

Managers and decision-makers face very complicated environments in which complexity increases day by day. Therefore, they need to accurately address these challenges and they need a strategy to help them create advantages for their business.

These advantages make the business grow to succeed and survive in an ever-changing environment.

Strategic management is also important because it helps to enhance the capabilities and competencies of business and paves the way to fulfill the objectives. Strategic management covers multiple areas which all aim to study the internal and external environment precisely in order to find the competitive advantages of the organization.

strategic management mainly covers the key concepts to address the social, political, technological, economic, and global factors and indicators; find industry and market and microeconomics structure, and identify organizational strengths and weaknesses. This process includes formulating, implementing, and evaluating strategies to gain prepared goals and to guarantee competitive advantage.

There are other important dimensions, i.e., assessment and recognition of the external environment of the business. The internal environment also matters. This environment includes resources and capabilities that the firms exploit in order to win gaining competitive advantage in the external business environment.

To formulating and designing strategy, we should consider different aspects and review the results from different perspectives.

The importance is that there should be a critical approach in identifying the internal and external environment.

In analyzing phase, we should consider the levels of analysis in a way to include business, corporate and network level. Other essentials of strategic management such as ethics and corporate responsibility, efficiency, and the frameworks of decision-making, sustainability, human resource management, strategic resource allocation, crisis management, and marketing management should also be addressed.

There is a vast available literature resource about strategic management which are useful to address to formulate the final version of the firm’s strategy. Once the formulation of the strategy is completed, the implementation phase begins.

Eventually, strategic management helps managers to draw a wide picture of the organization and this helps them to stay connected with the complex marketplace and to conserve their competitive position.