In the current essay I will review strategic management. Strategic Management is one of the functions of management, applied to long-term goals and actions of the company. Strategy Formulation and its precise tools are the core of government are a major sign of good management of the company. Strategic Management helps to develop and implement actions leading to long-term excess performance of the company above the competitors, according to Strategic management definition (2010).
Strategic management – it is a management of organization that relies on human potential as its basis, directs the production activities on customer needs, providing flexible and timely regulation of changes in the organization, adequate exposure of the environment and allows us to achieve competitive advantage, which ultimately contributes to survival of the organization and achieving its goals in the long term, according to Strategic management (2011).
It should be noted that strategic management is usually regarded as a set of five interrelated processes: analysis of the environment (external and internal), the definition of the mission and goals, analysis and strategy selection, implementation strategies, assessment and monitoring of the strategy.
Strategic planning is focused on making the best strategic decisions, while strategic management is related to the achievement of strategic results: new markets, new products and (or) new technologies. To paraphrase Peter Drucker, strategic planning ”“ is a creation of the management plans, and strategic management ”“ is managing for results. Strategic planning is considered an analytical process, and strategic management – organizational.
In strategic planning, there is the use of economic and technological variables. In strategic management, in addition, should be taken into consideration the psychological, sociological and political factors. Thus, strategic planning answers the question “What to do?”ť, Strategic Management ”“ asks the questions of “how”ť and “who will?”ť.
Strategic management consists of: formulation of strategies; development of business skills of the company; manage the implementation of strategies and development skills. The main stages of strategic management are: defining the scope of business and destination development company; transformation of destination firms in the private long-term and short-term goals; defining a strategy for achieving the goals; develop and implement a strategy; and performance assessment, monitoring the situation and the introduction of corrective actions, according to What is strategic management? (2010).
It can be said that strategic management ”“ is a sole management strategy in accordance with the developed strategy for achieving the strategic goals. Strategic decisions are often based on intuition and experience in strategy, since logically calculate all the possibilities and options for development of the situation of competing even in a military confrontation is impossible. To extend the experience / knowledge of a possible strategy it is essential to attract “advisers”ť. However, no responsibility and the initiative remains with the strategy (the role of leader of the organization) or “strategic planning process”ť turns into a bureaucratic procedures, and loss of initiative to compete. It should be noted that strategic management is an indispensable tool for any modern organization, according to Strategic management in education (2010).
All in all, it is considered that the strategic management ”“ is a management of the future. Therefore, if you design the desired future of the company, pulling it under a system of operational control, you are in strategic management. Strategic Management ”“ is the rationale and choice of long-term goals enterprise development and enhancing its competitiveness, and their binding. In the long term, it represents the development of targeted programs that provide achieving the intended goals.