Business involves heavy investment of time, money and resources to be run in an impromptu manner. Businesses need planning, strategy and management at every level and in every department, without which there is a high possibility of losses and exposure to unnecessary risks. So, it is critical that businesses plan and function in a structured and effective manner, grounded in sound data analysis and tailored to their needs and capabilities. This is possible through strategic management. As awareness about the need for strategic management is growing, there is a corresponding increase in the number of business managers, working professionals, entrepreneurs and even NGO managers enrolling to strategic management courses to become valuable assets to their organizations and to forge ahead in their careers.
Importance of Strategic Management
Strategic management lays down the vision, mission, objectives and goals (short-term and long-term) for the organization and provides a scale against which the progress towards these can be measured. By defining the priorities and laying down the strategic framework, it simplifies decision making and enables organizations to stay focused. All strategic plans are made based on a SWOT analysis of the organization and in-depth research about its core competencies and deficiencies. Based on such research and analyses, organizations can identify and strengthen its core competencies and thereby, gain a competitive edge. Strategic management enables organizations to respond effectively to the dynamic external environment (which includes business environment, economy, political environment, etc.). By requiring organizations to have risk mitigation plans and contingency plans in place, strategic management promotes better risk management, efficient management of resources and minimization of losses. To better understand strategic management tools and methods, enrol yourself in a strategic management course.
Growing relevance of Strategic Management in India
From the economic reforms of the 1990s or the era of globalization, liberalization and privatization as it is popularly known, organizations have started adopting strategic management. This because the organizations understand the importance of decentralization while aligning departments to the common goals. They are using SWOT analysis and other strategic management tools to understand their profitability drivers and core competencies and leverage these to their competitive advantage. While this is on the organizational front, Governments can also effectively use strategic management to boost India’s socio-economic development.
The tools and principles of strategic management can be applied to India as a whole as well as to individual states to identify the opportunities, strengths, weakness and core competencies of each state and a development strategy can be planned to cater to domestic and international markets. Where required, reforms can be brought about to provide ease of doing business.
Strategic management is particularly relevant to India because it has the demographic dividend that is yet to be tapped and if strategically planned, India can reap its benefits and gain a competitive edge in the global markets. There are different ways to do this- upskilling the labour force with skills that are relevant and in demand, fueling entrepreneurial spirit in the young population to improve job creation, harnessing savings, etc.