MANAGEMENT

Strategic Management

Strategic Management

Introduction

The strategic management is an important aspect for every organization. In today's fast pace of competition, the importance of strategic management has increased to a great extent. The strategic management provides the organizations with the strategic framework and the road map with which the organizations can achieve the organizational goals and objectives. It assists the organizations in fulfilling the organizational missions and visions. The organizations that develop and implement effective strategic management approaches in their business operations enjoy competitive advantage among the competitors in the industries. The strategic management ensures the implementation of strategies and approaches in an effective and efficient manner. Another important aspect of strategic management is that develops efficient coordination among the different level of hierarchies within the organizations.

The organizations implement different level of strategic management approaches at the corporate, functional and operational levels. The implementation of strategic management in all the business units affects positively on the organizational performance as a whole and it ensures the long term success of the organizations. The focus of the strategic management is not merely upon a particular unit, but it focus upon the whole organization. There are various issues that are confronted to the organizations in their business operation. In order to cope up with such issues, the strategic management plays significant role. It assists in planning and decision making in important aspects of the business operations. According to Philip S. (2003, pp. 18), when the action plans of the organization are consistent and also are in accordance to the expectations of the management, there is a definite strategic consistency within the organization that is in align with the external environment of the organization. Therefore, the strategic management not only focuses upon the business operations and the profitability of the organization, however, it also focuses upon the relationship with various stakeholders of the organisation. According to Stacey, R.D. (2000, pp. 116), the strategic management is a process in which the managers and the higher level authorities of the organization actively participates in solving the emerging issues in the business environment.

The development and implementation of strategic management approaches depends upon the structure of the organisations. It is usually believed that the stable environments favour prescriptive approaches and strategy whereas turbulent environments demand emergent strategies. The following section aims at discussing the significance of this statement while critically evaluating and discussing the issues that surrounds the organizational structures, decision making and social responsibility under both the situations.

Discussion

According to Yuan L. (2009, pp. 234), there are two basic types of management approaches that are implemented by the organizations. These two management approaches or the strategies include the prescriptive approaches and the emergent approach. The author believes that the prescriptive approaches is suitable for the situations in which the organization has a clear vision to move from one business position to another, whereas, the emergent approach is used by the organization in the environments where the situations are unpredictable and unplanned. Both of the approaches involve various issues that ...