Strategic management is the process of making and implementing decisions that will shape and guide a company's future. It involves setting goals and objectives, analyzing the competitive environment, and assessing internal and external factors that may affect the organization. The functions of strategic management can be broken down into several key areas.
First, strategic planning involves setting the overall direction for the organization. This includes establishing long-term goals and objectives, as well as identifying the resources and actions needed to achieve them. It also involves analyzing the organization's strengths and weaknesses, as well as the opportunities and threats presented by the external environment.
Second, strategic analysis involves gathering and evaluating information about the organization, its competitors, and its industry. This includes analyzing financial data, market trends, and customer needs. It also involves assessing the organization's internal resources and capabilities, such as its management team, manufacturing processes, and supply chain.
Third, strategic decision-making involves evaluating alternative courses of action and selecting the best course of action based on the information gathered through strategic analysis. This includes evaluating the potential risks and benefits of each option, as well as the resources needed to implement it.
Finally, strategic implementation involves putting the selected course of action into action. This includes allocating resources, setting performance targets, and establishing systems to monitor and control progress. It also involves communicating the plan to employees and other stakeholders and ensuring that everyone is working towards the same goals.
Overall, the functions of strategic management play a critical role in helping organizations achieve long-term success. By setting clear goals and objectives, gathering and analyzing relevant information, making informed decisions, and effectively implementing chosen strategies, organizations can stay ahead of the competition and navigate an ever-changing business landscape.