Nature And Scope Of Strategic Management

Strategic management is the process of formulating, implementing, and evaluating the strategies and plans of an organization to achieve its long-term goals and objectives. It involves analyzing the internal and external factors that affect the organization, setting goals and objectives, and developing strategies to attain them. The nature and scope of strategic management encompass several key aspects:

1. Vision and Mission: 

Strategic management begins with establishing a clear vision and mission for the organization. The vision defines the future state the organization aspires to achieve, while the mission outlines its purpose and reason for existence.

2. Environmental Analysis: 

Strategic management involves conducting a comprehensive analysis of the external and internal factors that impact the organization's performance. This includes evaluating the industry dynamics, market trends, competitive landscape, technological advancements, regulatory environment, and internal strengths and weaknesses.

3. Strategy Formulation: 

Based on the environmental analysis, strategic management involves formulating strategies to achieve the organization's goals. This includes identifying opportunities to capitalize on and threats to mitigate, setting strategic objectives, and determining the best course of action to achieve a competitive advantage.

4. Strategy Implementation: 

Once the strategies are formulated, strategic management focuses on implementing them effectively. This involves allocating resources, designing organizational structures, developing policies and procedures, and aligning the activities of various departments or business units towards the strategic goals.

5. Strategic Control and Evaluation: 

Strategic management includes monitoring the progress of strategy implementation and evaluating its effectiveness. This involves setting performance measures, tracking key performance indicators, conducting periodic reviews, and making adjustments as necessary to ensure the organization stays on track.

6. Long-Term Perspective: 

Strategic management takes a long-term perspective by focusing on the organization's overall direction and sustained success. It goes beyond day-to-day operations and aims to create a sustainable competitive advantage and adapt to changes in the external environment over time.

7. Multi-level Process: 

Strategic management is not limited to top-level executives or a single department within an organization. It is a multi-level process that involves participation and coordination across different levels and functions, ensuring alignment and integration of strategies throughout the organization.

8. Dynamic and Iterative: 

Strategic management is an ongoing and dynamic process. It recognizes that the external environment is constantly changing, and organizations need to continuously evaluate and adjust their strategies accordingly. It involves learning from experience, experimenting, and adapting strategies over time.

Overall, the nature and scope of strategic management encompass a systematic and holistic approach to guide an organization's actions and decisions towards achieving its long-term objectives in a competitive and ever-changing business landscape.