What is strategic management, and why is it important. Operation management is a process that involves planning, organizing, managing, controlling and supervising the production and manufacturing processes. The strategic management subject is in effect since history but has been taught as a syllabus of recent, to win over the various limiting factors attached with the organisation. During last century organizationsfocused on longterm planning. It defines strategy and explains the key concepts in strategic management. Pdf this paper presents strategic management as an important business management concept. An important concept for business owners and managers to grasp. It is usually considered that strategic management has five critical components. The importance of diabetes treatment and management aspe. The process of strategic management has been shown through a number of research studies to be the most important benefit of strategic management rather than the actual management materials, such as decisions or documents. Strategic management process is a tool that has been successfully used by the ailing corporate. In addition, the process can be used to involve managers at various levels in planning, thus making it more likely that the managers will understand the resulting plans and be committed to their. The term strategy is widely used in and presupposes importance. Strategic management in essence is a fancy name given to.
Strategic planning is a continuous process that enables organisations to adapt to the changing, dynamic environment. Operations management plays a vital role to run any project. South african perspective each task fits into the larger business goal to gain a greater sense of importance in the larger. Strategic human resource management then is the process of using hr techniques, like training, recruitment, compensation, and employee relations to create a stronger organization, one employee at. As a consequence, the environment of organisations has shown rapid and turbulent change and has led to new. The importance of strategic management to business organizations julius tapera chairperson. Natural resource management and the importance of gender. Starting from right staffing to maintaining performing employees, hr management is key in developing not only the employees, but the whole organization itself. Linking hrm practices to the companys business objectives, i. The major aim of an operation manager is to ensure timely delivery of the products and to successfully turn the raw materials into the finished products input to output.
First, create a mission statement that describes the central purpose of the organization and its goals and a vision statement that focuses on the future direction of the company. A strategic approach in human resource management is vital especially in growing companies. The evolution of strategic management accounting strategic management accounting sma came to prominence in the late 1980s as one of the range of new techniques and approaches designed to restore the lost relevance of management accounting. Increasingly, strategic management has become crucial in the world of business and. Educational management is a field of study and practice concerned with the operation of educational organizations. If left untreated or undertreated, diabetes can cause severe complications that can damage many vital organs in the body and lead to premature death. It did so principally in the uk, with bromwich as one of its main academic advocates at that time. These employees see hr staff as gatekeepers, people who.
It coordinates organisations internal environment with the external environment, financial resources with nonfinancial resources and shortterm plans with long term plans. Strategic planning and change management in telecommunication industry in kenya. Therefore, given to these questions, the importance of strategic management should be further investigated. If a global company is to function successfully, strategies at different levels need to interrelate. What is the importance of strategic business management. This is an essential management tool for any company. Pdf the importance of strategic management to business. What is the importance of business management for a company. This saying exalts the importance of strategic management to success in any endeavor. Without project management there would be chaos in organisations which would induce stress, uncertainty and higher rates of failure, highlighting project managements essential nature to organisations. It may get lucky, but it certainly has a lower chance of surviving and maximizing profits than a company that has a strategic management discipline. You can create a strategic plan in three fairly simple steps. Strategic management meaning and important concepts strategic management an introduction strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. It is an essential management process to strategize and prepare for different odds.
Ethics are a set of moral standards that are relied upon to reach conclusions and make decisions. The current management is not possible without strategic. The administrative and economic functions of management include planning, counseling, directing and decision making. Strategic management and the role it plays in the accomplishments of firms has been a subject of thorough research and study for an extensive period of time now. Human resources encompasses a broad scope in management. Importance of business ethics in strategic management qs. A swot analysis should be conducted strengths, weaknesses, opportunities and threats to optimize the companys strengths. Students who are pursuing mba 3rd sem should refer to this page for availing the best lecture notes for strategic management subject.
Strategic management objectives can be defined as taking some sets of the decision, and some actions either in a group or individually and those acts determine the output of the companys performance and those key decisions outline how rightly the strategy was executed. Characterizing features and key components research into change in the context of educational improvement has clarified the nature and reach of an effective management model for achieving the desired improvements in an educational setting. Importance of strategic management in an organization keka. The art of strategic management remained primarily associated with the military history. As discussed in the study in a detailed way, a new management concept called strategic management has emerged throughout the world in the recent 20 years, and it has made enormous strides. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management. For those concerned with the enterprise, strategic issues, initiatives, and plans are. Mba strategic management lecture notes pdf free download. In the words of the oxford concise dictionary, strategy means generalship.
Hence the strategic management model is so important. It relates to everything that is happening in your company like. The subject is situational and so a script will never be enough but is meant to imbibe in student a. According to tapera 2016 19, a strategic plan is a tool. Strategic planning is the first phase of the strategic management process. Longterm planning supposed that external and internal environmentwill remain stable for long period of time and thus they made plans for long duration. Case study of telkom kenya washington okeyo, divinah rachel. Strategy the word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who.
The result of strategic planning process is a strategic plan which is a blue print for the organization as it moves into the future. The importance of leadership and management for education what is educational management. Pdf the importance of the strategic management process in the. What is strategic management definition and features. Debates about the importance of human resources management occur daily in workplaces. What is the importance of studying strategic management. What is the importance of studying management answers. This paper presents strategic management as an important business management concept. The importance of management accounting gemanalyst.
For strategic management to be successful, the organizations leaders must have a thorough understanding and analysis of their company. An essential part of planning is the forecasting and budgeting process. Disciplined project management starts at the portfolio level, where the strategic vision drives initial investments and where value. In this article we will discuss about the importance of studying strategic management. Strategic management is critical to staying competitive and standing out in a crowded marketplace. In a business environment, ethics are a key factor in responsible decision making.
Strategic management meaning and important concepts. The aim of this research paper is to study about the art of strategic management and its role in the success of corporate sector. Importance of business ethics in strategic management. According to this new paradigm, the success of the organizations originates from the strategic approach towards the management barca, 2002b, p. Before we try to explain the meaning of strategic hrm, let us first define the terms strategy and strategic management. Natural resource management and the importance of gender in most regions of the world, the sustainable management of natural resources requires the involvement of many different stakeholders. Although strategy has been important throughout history, strategic management as a field of study has largely developed over the past century.
The main importance of strategic business management is to assist the business profit and decision making, yet its functions can also be broken down. The importance of strategic management a case study of. Financial management refers to the strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute. Human resources hiring people, and create a good team with relevant people who will bring new value to your company.
All organisations, business and companies manage project, people, costs and tasks on a daily basis. Importance of strategic managementstrategic management has gained importance in recent years. Strategic management as key to improve the quality of. The importance of corporate strategic processes in managing efficiency of enterprise 69 priority rules help managers rank the accepted opportunities mostly for resource allocation, timing rules set the rhythm of key strategic processes and help synchronize an enterprise with emerging opportunities and coordinate the enterprise various parts. It is a crucial fact that it is important to study management in order to work as an employee or to become an employer or to own a successful organisation, by studying management is like the step. The main task in the strategic planning process is. Study of strategic management coupled with knowledge industry can educate the business managers to understand the inherent problems so as to make rational. The importance of the strategic management process in the. Taking into account the different roles and responsibilities of men and women is critical to the sustainable management of natural. Strategic management benefits all business ventures, including small business, forprofit, nonprofit and fortune 500 companies. Changes in business environments will require organizations to constantly assess their strategies for success. Strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. Download mba strategic management lecture notes pdf mba. A good strategy helps management prioritize activities within the company and how resources get spent.
The value of project management looking for a way to stay ahead of the pack in todays competitive and chaotic global economy, companies are turning to project management to consistently deliver business results. Here are some reasons why strategic management is a crucial business practice. The importance of leadership and management for education. There is no single generally accepted definition of the subject because its development.
Strategic management in an organization ensures that goals are set, primary issues are outlined, time and resources are pivoted, functioning is consolidated, internal environment is. Yet another reason for the importance of strategic management is that it can help highlight the need for innovation and provide an organized approach for encouraging new ideas related to strategies. Management study guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects. Importance of strategic management in business expert. A business without a strategy is only looking at tactics. Defining the organizations business and developing a strategic mission as a basis for establishing what the organization does or doesnt do and where its headed. Read on to see the true importance of strategy for a business. In the corporate sector, its emergence started after. Strategic also means of great significance or import and so strategic plans, at all levels, are intended to address matters of great importance. Strategic human resource management john bratton chapter two strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance.