Strategic management basically aims at identifying and describing the strategies, which would be utilized by the managers of the organization, in order to attain better performances as well as competitive advantage for the company. Additionally, it is also considered to be a set of decisions as well as actions, which are taken by the managers or the top management in order to attain the objectives of the organization. Since, this is an ever changing environment, the managers must have all the information and knowledge, in order to cope up with these changes. The manager should be able to make sound decisions and utilize the resources of the company more effectively and efficiently. The initial stage for the manager is to analyze the organization itself, by conducting a SWOT analysis. In accordance with this, the decision takers look to devise a strategy.
The major focus of the strategy is the utilization of the strengths of the firm, in the best possible manner. Apart from that, the organization should look to minimize its weaknesses, make best possible usage of the opportunities that arise within the market and always be aware of the threats to the organization. A strategy is developed to cover all these areas. This is the basic function of strategic management. The resources of every organization are limited and have to be utilized efficiently, so that the best possible profit could be gained off of them. For these purposes, the objectives or goals of the company are decided and communicated to the managers. Every strategy, which is developed, aims at achieving these goals and facilitating the notion of the profitability. Strategic management is critically important for every organization in the world, in order to attain competitive advantage over the other firms. The concept directs the position of the organization and its vulnerability to competition. Since, every company faces competition at some level, it is critically important to realize how the strategies of the competitors are likely to effect the organization.
In accordance with this comparison, strategic management aids in the development of the business as well as meeting the competition. Communication is one of the key elements of strategic management. Most organizations look to communicate its objectives to the employees, so that they also have an understanding of what is targeted by the organization. This is how the plan or strategy is executed, maximizing the abilities of the organization in achieving the desired objectives.
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