Our world is changing every moment. Every day new inventions and discoveries are taking place. A decade ago no one had thought about living on Mars but today it seems like a doable option. The world academic needs to keep up and match itself with these changes. One vital field that is picking up pace in the commerce field is that of strategic management. It is important to know what strategic management is and how businesses can increase their profitability based on it.
What is strategic management?
Strategic management is an integral component of business planning. It is a process through which you formulate and ensure the calculative implementation of an organisation’s strategic goals.
During the process of strategic management, the vision and objectives of the organisation are broken into various pieces and strategies are formulated to achieve them in a planned and phased manner.
Research is at the centre of strategic management. The strategic planning done taking into account the views of employees, customers and best in-town industry practices have a higher success rate. Doing research and feedback are key to strategic planning.
In every organisation, the board of directors is entrusted with the responsibility to frame and implement various strategic policies. The board needs to comprehend the impact of decisions on the various businesses run by the organisation. They are the chief strategists who undertake policy decisions at the top-level.
If you want to know what is strategic management in lucid terms – it is a culmination of innovative thinking, drawing a suitable plan and ensuring its implementation.
Why is strategic management important?
Here are a few reasons why strategic management is important to any business:
1. Clarity of Goals:
One must know the end goal to draw down the path. Goals are important to have a clear picture as to how you want to move ahead. Strategic management can aid in laying down this pathway that will lead any organisation to its ultimate goal.
Planning is the next step once the target is clear. But traditional planning is not always that efficient. The external factors that affect the business are constantly changing and so you must have strategic planning in place.
Strategic planning evaluates the impact of external factors at various levels and helps in formulating an alternate plan in advance.
3. Resource allocation:
Resources are always limited. Difficult times will put you in a spot to allocate these resources wisely.
Strategic management will come to your rescue during such times. It will assist you in deploying scarce resources in the best possible way. At the same time, it will give options to make the most of the resources which are available in abundance.
4. Managing Your Pluses and Minuses Efficiently:
Every coin has its two sides and so does every business. You need to evaluate your business’s positives and negatives and continuously monitor them to avoid a major roadblock. Strategic planning will help you in nullifying the impact of your weakness.
Given the brief above the future of pupils enrolling for courses in strategic management seems very bright. They can directly be employed in the top management, as thinking tanks, in any organisation given their skill sets.
Here are a few career options you can select after doing a course in strategic management:
- Business Analyst
- Project Analyst
- Financial Analyst
- Project Management
- Process Coordinator
- Marketing Consultant
- Compliance Officer
- Consumer Insight Analyst