(Solved Homework): Strategic Management? What is it and why is it important? What are the four key attributes of Strategic Management?…

STRATEGIC MANAGEMENT IS IMPORTANT BECAUSE IT GIVES STRATEGIC PLANS TO ACHIEVE THE ORGANISATION’S GOAL.

STRATEGIC MANAGEMENT IS FANCY IDENTITY OF PLANNING PROCESS WITH SOME ADVANCED CONCEPTS

IT MAY BE CALLED AS SET OF DECISIONS TAKEN BY MANAGERS AND OFFICERS TO ACHIEVE THE GOAL IN BEST MANNER.

IT IS IMPORTANT BECAUSE WE KNOW THAT “IT IS BETTER TO HAVE PLAN FAILED RATHER THAN FAILED TO PLAN”

THIS SINGLE LINE SHOWS THE IMPORTANCE OF PLANNING.

HOW TO USE RESOURCES, WHAT TO PRODUCE, WHEN TO PRODUCE, HOW MUCH TO PRODUCE, HOW TO MAINTAIN, HOW TO SALE, WHERE TO SALE, FUND SHALL BE PROCURRED FROM WHERE, WHETHER EQUIPMENT SHALL BE PURCHASED OR NOT..

THESE KIND OF SO MANY DECISIONS SHALL BE TAKEN IN ROUTINE BUSINESS PROCESS.

IN ALL SUCH CONDITIONS, STRATEGIC PLANS GUIDE FOR TAKKING THE RIGHT DECISIONS.

ATTRIBUTES OF STRATEGIC MANAGEMENT.

1 – IT IS GOAL ORIENTED PROCESS.

IT FOCUS ON THE GOAL OF THE ORGANISATION, IT THINKS FOR THE BETTERMENT OF THE ORGANISATION AS A WHOLE NOT FOR ANY SINGLE FUNCTIONAL AREA.

2. IT CONSIDERS MULTIPLE STAKEHOLDERS FOR DECISION MAKING PURPOSE. MANAGEMENT TRY TO UNDERSTAND THE EXPECTATIONS OF ALL THE STAKEHOLDERS AND TRY TO SATISFY THEM. IT IS NOT ONLY FOR GIVING BENEFIT TO ONE GROUP MORE AT COST OF OTHERS.

IT IS BECAUSE ALL STAKEHOLDERS ARE THE CONTRIBUTORS IN THE ORGANISATION SUCCESS THEY HAVE STAKE IN SUCCESS. FOR GENERATING MORE AND MORE PROFIT, EMPLOYEES SHALL NOT BE SUFFERED, FOR SAVING IN COST, CUSTOMER SERVICES SHALL NOT BE ADVERSLY AFFECTED. THESE ALL SHALL BE CONSIDERD.

3- IT MAKES VISION AND MISSION BOTH. IT INCLUDES SHORT TIME AND LONG TIME PERSPECTIVE. ANY DECISION SHALL NOT BE TAKEN IF IT IS ADVERSLY AFFECTING THE ORGANISATION IN LONG TIME EVEN IF IT MAY LOOK BENEFICIAL IN SHORT TERM.

WHILE PREPARING THE PLANS FOR NEAR FUTURE, ONE EYE SHALL BE KEPT CLOSELY ON THE IMPACT OF THAT PLANS ON THE LONG TERM GROWTH AND VISION. WHILE SEEING THE VISION, THEY HAVE TO BE FOCUSED ON THE PRESENT CONDITIONS AND MISSIONS ALSO.

4- INCREASE THE EFFECTIVENESS AND EFFICIENCY. IT IS KNOWN AS DOING THE RIGHT THINGS AND DOING THINGS RIGHT. RESOURCES ALLOCATION AND UTILISATION SHALL BE DONE WISELY.

WASTE SHALL BE REDUCED. FOR THIS PURPOSE, STANDARDS CAN BE PREPARED. ACTUAL PERFORMANCE CAN BE COMPARED WITH STANDARDS AND TRY TO IMPROVE IF THERE IS ANY LACKINGS.