Strategic management is defined as the process by which higher management of any business organization planned strategy for the better performance of the company. It is the process under which strategy planned that what should be the target of the company and how it can be achieved.
Making strategy is not so easy as the entire mission and vision of the organization envisaged under the process and higher level of the management involved in this. Strategic management is the continuous process, which focus on the company out lay plan regarding its target, the budget that invests on the various management aspects to achieve the fixed targets.
During formulating policies and strategy for a business organization, four thing which become more significant during the process are:
(a) Situation analysis
(b) Strategy formulation
(c) Strategy implementation, and
(d) Strategy evaluation.
Analysis of the prevailing situation is the major part during formulating a strategy for the future plan of organization. Policy makers analyze the whole internal and external situation of the organization including the company?s present status on various fronts. The entire internal environment situation discussed extensively regarding the relationship of staff with the management and other things.
The external situations in context with the organizations interests are also equally important for the policy makers and ignorance of the facts can hamper the policy making. What are the situations of its brands in the market and which kind of trouble facing company outside the company including supply chain and it?s branding. All these things must be discussed during the policy making.
Only situation analysis is of no use if proper strategy is not placed for the better output of the company. Strategic management process shows the way that how to make a proper strategy to overcome the problem appeared in the way of the company objectives. Human resource management, finance, marketing etc are the aspects of management, which play significant role in the betterment of the company future. If there is a trouble with the hiring and training of the staffs then certainly human resource management must be focused for a better planning. Equally production and finance management needs for a better strategy if there is something wrong with the aspects.
Also focus should be given on the competitor's strategy for their branding and other steps as it helps in promotional campaign and other tools for the organization. Implementation of this strategy is very important as without it all strategy is in vain. For the implementation of these strategy should be in practice and all the recommendation must be applied on the right place as per the strategy. During the placing strategies in practices, its priority is also very crucial and focus should be given that which of the strategy should be bring in practice first. The worst problems should be given more priority, as it can damage more with respect to other which are less harmful.
Evaluation of these strategies is also crucial important as without it, no policy or strategy can give desired output. The changes highlighted during the making policy and strategy, must be implements and evaluated so that the desired objectives can be achieved. In fact is evaluation, which is the final and ultimate step, which ensures the meeting deadline and meeting the desired objective for a business organization.