Strategic management is considered to be the collection of the ongoing processes and activities that an organization uses so that to systematically coordinate and align the resources and actions with the vision, mission, and strategy all through the organization. The activities in strategic management usually transform the static plan in the system that provides strategic performance feedback in decision making and enabling the plan to grow and evolve as the requirements and several other circumstances change. Strategic management has emerged as a primary value in helping organizations to successfully operate in complex, dynamic environments. In order for organizations to be competitive in the complex, dynamic environments, the organizations are supposed to be less bureaucratic and should be more flexible. In environments that are stable, competitive strategy involves defining the competitive position and then defending it. With strategic management, it allows companies to be more flexible. Organizations are supposed to develop in a strategically flexible way so that they can have the ability of shifting from a dominant strategy to another.
Strategic management is extremely necessary in organizations. When strategic management is employed in the organization, it helps the organization to formulate strategies that it will focus on in the changing environment. There are several factors that need to be considered when formulating strategies. One of the factors is the changing environment. Strategic management helps the survival of the organization because the management is able to formulate strategies in which will result to the success of the organization despite of the various barriers it might experience. In a business, environment is ever changing; therefore, there is the need to reflect if the organization will cope with the environmental changes. Because of the changes, it is likely for the strengths of the organization to also change. With strategic management, it helps the organization to consider whether the present strengths will continue to being strengths in different situations.
Strategic management is important because it gives people the opportunity to consider the goals of the stakeholders because the goals help in understanding the behavioral patterns and the impact they will, have in the future and present conditions. When all this factors are considered, it helps in developing a business strategy through the employment of strategic management. Strategic management is very essential as it is a method for developing, executing, and evaluating the organization strategy.
Strategic management help in the success of the organization which later result to the survival of the organization in the global market. With strategic management, it usually integrates experience and knowledge that has been gained in various functional areas. With strategic management, it helps the organization in understanding and making sense of the complex interaction found in various areas of management. With strategic management, organizations are able to plan ahead. When the organization is planning ahead, it has to make sure that it is planning the way in which it will stay long in the market and also be productive. Strategic management normally gives the organization direction, sense of unity and direction towards the goal of the business. Therefore, strategic management proves to be important in the survival of the organization.
Strategic management usually enables the organization to achieve its goal in a manner that is efficient and effective. It has to consider the mission and vision of the organization. A strategic management process that is improved helps in facilitating the development of more complex management structures which the organization requires for its survival and growth. This helps the organization in articulating, communicating and monitoring the strategy implementation by use of the interlinked system with the long term vision of the organization.
Formalized strategic management usually result to superior performance of the organization. Several studies have been conducted that indicate that organizations that are able to adopt strategic management have been able to improve their financial performance. This is because, the organization is able to know the strategies that they will use so that they can be able to penetrate through the market and how they can adapt to the changing business environment. Strategic management is a powerful tool to the success of the organization whereby the value of its success lies on the executive and the ability of using the strategic management tool to manage the organization effectively.