What is Strategic management? Strategic management Process, types.

Summary

This video offers an in-depth exploration of strategic management, defining it as a comprehensive process involving planning, monitoring, analysis, and assessment to align with an organization's mission and goals. It outlines the five-phase strategic management process, including goal setting, information gathering, strategy formation, implementation, and monitoring. The video also covers SWOT analysis and the balanced scorecard as key strategic tools, highlighting the advantages of strategic management such as enhancing decision-making and progress measurement, while acknowledging its challenges like the difficulty of predicting the future and the complexity of the process.

Takeaways

• 📈 Strategic management is a comprehensive process that includes planning, monitoring, analysis, and assessment to meet an organization's objectives.
• 🎯 It is based on a clear understanding of the organization's mission, vision, and the guiding principles for future actions.
• 📊 Strategic planning involves setting both short-term and long-term goals, as well as making strategic decisions and allocating resources to achieve them.
• 🔍 The strategic management process includes five phases: goal setting, gathering and analyzing information, strategy forming, implementing the strategy, and monitoring.
• 👥 Goal setting starts with short-term goals that act as a blueprint for accomplishing long-term objectives and involves defining roles and responsibilities.
• 🔎 Information gathering and analysis involve using data from within the organization and the market to develop a constructive plan.
• 🛠 Strategy forming uses the collected data to create a unique strategy that meets all necessities and requirements based on available resources.
• 🚀 Implementation is crucial as it involves putting the plans into action with a clear understanding of the organizational goals.
• 👀 Monitoring involves tracking and evaluating every step associated with the strategic management plan, allowing for adjustments and new planning if needed.
• 🔑 Types of strategic management include SWOT analysis for inspecting internal and external factors and the balanced scorecard for evaluating business performance in four areas.
• 🛡️ Advantages of strategic management include discharging board responsibility, providing a framework for decision making, enabling progress measurement, and offering an organizational perspective.
• 🚧 Disadvantages include the challenge of anticipating the future environment, the cost associated with employing external consultants, and the complexity of the process which requires endurance and time.

Q & A

What is strategic management?

Strategic management is the process of planning, monitoring, analysis, and assessment of all necessities that an organization needs to meet its aims and objectives. It is based on a clear understanding of the organization's mission and vision and guides its actions towards future goals.

What are the key components of strategic planning?

Strategic planning involves setting both short and long-term goals, planning strategic decisions, activities, and resource allocation needed to achieve those objectives.

Why is having a defined process for managing an organization's strategies important?

A defined process for managing strategies helps organizations make logical decisions, develop new goals quickly to keep pace with evolving technology, market, and business conditions, and ensures that various functional areas of the organization work effectively and harmonize well.

What are the five phases of the strategic management process?

The five phases are: 1) Goal setting, 2) Gathering information and analyzing, 3) Strategy forming, 4) Implementing the strategy, and 5) Monitoring.

What is the purpose of goal setting in the strategic management process?

Goal setting, particularly short-term goals, serves as a blueprint for accomplishing long-term objectives and helps in separating roles and duties, motivating team members in the long run.

How does gathering information and analyzing data contribute to strategic management?

Data gathered from within the organization and the market helps in developing a constructive plan that forms the foundation for strategic management, allowing the company to recognize internal strengths and weaknesses affecting its operations.

What is the significance of the strategy forming step in the strategic management process?

In strategy forming, all collected data and information are used to create a unique strategy that meets all necessities and requirements based on available resources, including controlling asset purchases and recruitment of experts.

How is the strategy implemented in an organization?

Implementation involves employees having a clear understanding of the plan and organizational goals, ensuring that plans are executed with perfection.

What does the monitoring stage of strategic management involve?

Monitoring involves analyzing, managing, tracking, and evaluating every step associated with the strategic management plan, allowing for comparison of desired outcomes with current outcomes and making necessary adjustments.

What are the two important types of strategic management discussed in the script?

The two types discussed are SWOT analysis, which inspects internal and external factors, and the Balanced Scorecard, which evaluates business performance across four areas: learning and growth, business processes, customer perspectives, and financial data.

What are some advantages of strategic management?

Advantages include discharging board responsibility, providing a framework for decision-making, enabling measurement of progress, and offering an organizational perspective that considers all components and their interrelationships.

What are the disadvantages of strategic management mentioned in the script?

Disadvantages include the difficulty of anticipating the future environment, the cost associated with employing external consultants, and the complexity of the process, which requires endurance and time from management.