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CHINMAY JADHAV

ROLL NO. 45
TYBBI

WHAT IS STRATEGIC MANAGEMENT?

Strategic management refers to the art of planning your business at the highest possible
level. It is the process of specifying the organizations mission, vision and objectives,
developing policies and plans, often in terms of projects which are designed to achieve
these objectives.

It is a conduct of drafting, implementing and evaluating decisions that will enable an


organization to achieve its long term objectives. It is also a process of allocating
resources to implement policies and plans as well as projects and programs.

Strategic management is an on going process. It evaluates and controls the business and
the industries in which the company is involved. It assesses its competitors, it sets goals
and strategies to meet all existing and potential competitors and then reassess each
strategy regularly.

It is the duty of the companys leader. Developing strategies for a corporate is a


management responsibility. Decision making is the most important activity carried out by
all the managers. Strategic decisions are highly complex and significant because they
deal with long term health of the organization.

Strategic management focuses on building a solid structure to ones business. It later


becomes a combined effort of every individual one employs.

Strategic management concentrates on three major aspects. They are the objectives, best
ways too achieve those objectives and lastly resources required to achieve them.

WHAT IS THE IMPORTANCE OF STRATEGIC MANAGEMNT?


Strategic management has gained importance in recent years. During last century organizations
focused on long-term planning. Long-term planning supposed that external and internal
environment will remain stable for long period of time and thus they made plans for long
duration. Today it is clear to the managers and entrepreneurs that environment can change at any
point of time and their plans should follow a strategy that includes contingency planning too.
A well-formulated strategy can bring various benefits to the organization in present as well as in
future.
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Strategic management takes into account the future and anticipates for it.

Strategic management reduces frustration because it plans in such a way that it follows a
procedure.

With strategic management organizations can avoid helter & skelter and they can work
directionally.

Strategic management also adds to the reputation of the organization because of consistency
that results from organizations success.

Often companies draw to a close because of lack of proper strategy to run it. With strategic
management companies can foresee the events in future and thats why they can remain
stable in the market.

Strategic management looks at the threats present in the external environment and thus
companies can either work to get rid of them or else neutralizes the threats in such a way
that they become an opportunity for their success.

Strategic management focuses on proactive approach which enables organization to grasp


every opportunity that is available in the market.

Lastly, all these business operations involve huge amount of funds and all these activities
have to be well planned for effective working of this system. This is possible only with
Strategic management.