Strategic management is a key area of work for leaders and managers. They focus on it as a large part of their roles in the organizations that they work for. There are many good strategic management courses in India which are very comprehensive in their coverage of what it entails and the kind of skills it needs. In terms of reference strategic management is a very broad area. There are sub-areas within it, which are functions that need to be carried out.
Functions of Strategic Management:
Development of Company Strategy and Vision
It involves defining the vision and mission of the organization, which in essence means the purpose of its existence. It also involves the development of the company’s strategy in order to chart out its future growth pattern based on some specific actions. Strategic management identifies what those actions will be and then shares those with the teams that implement.
Identification of Products and Markets
Growth for an organization means constant innovation to maintain its competitive edge as well as market share. One of the functions of strategic management is to identify the new products and new geographies that the organization needs to explore. It also means the evaluation of the viability of existing product, service and market, and assessment of whether to continue or not.
Focus on Company’s Brand Positioning
The company has a brand value and position that people identify it by. Strategic management means upholding, sustaining and reinforcing this brand positioning. This is done by ensuring that the strategy is aligned to the brand, as well as all the internal and external actions.
Alignment Across Businesses or Departments
Strategic management ensures that no business segment or department in the organization is working in silos. When planning takes place, the views of all departments and businesses are considered. The final decisions are shared and discussed to ensure that there is an alignment of organizational purpose and goals. This is the role of strategic management.
Planning and Course Correction
Strategic management is all about planning for the business. This planning is similar to a SWOT analysis which identifies the new opportunities and threats to existing business as well. It also means that one of the functions is to course correct the business performance in case it is not following the right growth rate.
These are some key responsibilities that the strategic management function in any organization performs. There are many others as well such as financial planning, budgeting, talent pipeline review, leadership team performance and so on. Learn about all this and more by enrolling into an online course in Strategic Management and boost your career progression.
The entire process of strategic management firstly includes the assessment of all the resources available to the company. Then, an industry analysis is done to determine the market condition and competitors. After this, an internal evaluation is done to understand the strength and weakness of the company. After reviewing all these, a proper strategy is formulated, which will help the company to achieve its goals.
Furthermore, strategic management includes planning and defining the major objectives and goals of a company. These objectives are planned by the management of a company on behalf of its stakeholders. Hence, proper strategic management helps the company to be successful. If proper strategic management is not done, then there are chances that the business won’t flourish.
If you are planning to start your own business, then you should have the skills and knowledge base of strategic management. If you do not know much about this, then you can enroll for the Strategic Management IIM Kozhikode course today. This course will help you understand the nitty-gritty of the entire procedure. If strategic management is done properly, then there are very few chances of the business failing.
Importance of Strategic Management
Strategic management determines the roadmap to a company’s success. Hence, formulating a proper strategy is of utmost importance.
- Gives a proper direction for the company to move forward.
- Helps to compete better in the market.
- Acts as the blueprint for all future decision making
- Helps business to be prepared for future obstacles and also help it to take the right steps to grow at the right time.
Frameworks of Strategic Management
To formulate a proper strategic management strategy, you will need to understand a few concepts of the framework of this procedure. To understand these concepts, you can check out the Online strategic management course syllabus. From the syllabus, you will understand the important components which are required to formulate a strategic management strategy.
Portfolio Theory and Corporate Strategy
The portfolio theory in strategic management offers proper guidelines on how to allocate assets at any level of risk. If there is any kind of loss, then the assets should be allocated in such a way that it maximizes the return. This portfolio theory allows businesses to conduct a proper cost-benefit analysis when resources are deployed.
To understand the concept of portfolio theory and corporate strategy, you can enroll yourself in the Strategic Management IIM Kozhikode course. This course will cover each and every component of strategic management in a very detailed manner.
With proper strategic management, a business can achieve the lowest cost of production or even better product differentiation. This will give the company upper leverage when it comes to competition. Strategic management helps a company to identify its advantages and how it can be used as an advantage.
Businesses should only focus on their core business and operations and should outsource other activities as much as possible. This will help the business to achieve its goal more efficiently.
From the above, we can safely say that strategic management is very important when it comes to the formulation of the roadmap, which can lead the company to success.