Every organization must needed strategic management and planning to achieve common objective. Strategic Management and strategic planning are different concepts which followed by organizations.
Strategic Management
“it can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organisation to achieve its objectives.” By David F.R.
The overall purpose is to combine the effort energy of organisation’s functional areas into one focused to achieve superior performance. Basically, it is used in Academic environment. The management work according to the strategies made in order to achieve the common goal.
It be get successful, when the organisation leaders must analyse and understand strategies of their company. Every company must conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to optimise the company’s strengths, minimise the organisational weaknesses, grab the opportunities and aware from threats.
Strategic Planning
“it is defined as the process by which managers of the firm analyse the internal and external environments for the purpose of formulating strategies and allocating resources to develop a competitive advantage in an industry that allows for the successful achievement of organisational goals.” By Cox, Daspit, mcLaughlin and jones(2012).
Strategic Planning is used in Business environment and it consider as a guaranteed for success. Whether it can be done internally among leadership or externally by bringing outside consultant to facilitate the process of a company. It is for long-term planning which helps to manifest your vision.
Importance of strategic planning
#1. Requirement for sustained competitive advantage
Without following strategic planning some companies may achieve competitive advantage but for the most businesses out there it is compulsory to plan strategically to get success, i.e., Research, analyse, create, implement and then monitor their strategy and this is a continuous process.
#2. Views things from broader perspective
This is another main reason why the organisations not able to rely on their finances, operational functions and marketing area to bring the competitive advantage. The managers of each area are seeing things in their specific angles. Whole organization is a too broader analyse to rely upon.
#3. Facilitates Collaboration
Nowadays, most companies are involved middle managers of functional areas into the process of formulating strategic plan. Middle managers are the people who are part of implement the strategies set out in a plan. if they are not involved in making the startegical plan, then they aren’t so committed or loyal to support it.
The strategic management and planning benefited to define company’s vision, mission and future goals. By these you can identify the suitable strategies to achieve your aim. It also improves relation of the external and internal environments, and it identifies clearly the competitive advantage. It will increases managers’ commitment to achieving the company’s objectives.
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