What is Tail Risk and How to Manage it
Most of the literature in market risk management is dedicated to explaining the methods which are used in the management of regular market risk. This means that importance is rightly given to the management of the cases which are likely to occur 99% of the time. However, the recent past has shown us that there […]
Integrating Marketing Communication to Build Brand Equity
Marketing programs play an important role in building up of brand equity. These marketing programs are related to product, price and distribution channels. And these programs are necessary to create brand image and also to build brand awareness. This task is done through medium of marketing communication, in its most form is advertising. Marketing communication […]
Time Management Tips at Workplace
Time management is one of the most essential skills contributing to the success of an employee as well as organization. An employee needs to manage his/her time well to complete assignments within the stipulated time frame and deliver results on time. Employees often complain of not being able to spend quality time with family members […]
Exit Strategies In Credit Risk Management
Firms often give loans or extend credit over extended periods of time. The credit extended may continue for years and even decades. It is possible for the management of the company to change during this period. It is also possible for the cash flow position of the company to change during this period. Hence, it […]
Learning: Definition, Characteristics and Types of Learning in Psychology
The process of learning is continuous which starts right from the time of birth of an individual and continues till the death. We all are engaged in the learning endeavours in order to develop our adaptive capabilities as per the requirements of the changing environment. For a learning to occur, two things are important: The […]
Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization.
An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance.
The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions.
The managers should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) in order to - make the best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats.
Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.
It is a way in which strategists set the objectives and proceed about attaining them.
It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving.
Strategic management is a continuous process that:
Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members.
It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives.
The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task.
They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management.
Thus the employees can judge the impact of such changes on their own job and can effectively face the changes. The managers and employees must do appropriate things in appropriate manner. They need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well.
Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization.
Following are the important concepts of Strategic Management:
Your email address will not be published. Required fields are marked *
