What is the meaning of strategic management and the process of Management strategic planning?

The term strategic management refers to the entire scope of strategic-decision making activities in an organization. The strategic management concept includes various strategies that managers adopt to achieve better performance and advantages competitive for their organization. Strategic management has evolved and will continue to evolve. Sometimes, managers use the terms strategic management, strategic planning, long term planning interchangeably. It is the continuous process of planning, monitoring, analyzing, and evaluating all that is necessary for an organization to meet its goals and objectives. Evaluation is very important for making an action plan successful and making changes when the desired outcomes are not being produced. Here in this guide, we will discuss the main objectives of strategic planning in the business. Process of the management strategic planning Strategic planning refers to administering the formulation and implementation of the strategy. Strategic planning is a process that helps an organization’s leader for defining their visions for the future and help in identify their mission and objectives. There are four major steps of strategic management which are listing as below. Environmental analysis Before any formulation of a competitive strategy, an organization needs to consider some important elements. It includes company weakness and strength, personal values of the implementers, broader societal expectations, and many more. These elements are very important and analyzed thoroughly and understand the position of business and path of business as well. Some external factors that highly affect the business planning, include political, economic, social, and technological (PEST). The industrial environment analysis framework helps to determine the competitive rivalry and therefore attractiveness of a market. it is used to determine the portfolio of offerings the organization will provide and which market. SWOT is analysis is one of the common and widely used frameworks, which examine both internal and external elements of the organization. SWOT refers to strength and weakness and external opportunities and threats. It helps examine the organization’s resources in the context of its environment. Prioritizing of objects Once you analyze the current environment and situation of the company in the market then the next step is to identify the object and goal. Now you make a strategy according to the goals and vision of the company along with considering the weakness and strengths of the company. Objectives should be distinct and measurable to assist the leaders in how they can reach long-term strategic goals and outline the initial steps. They need to decide on goals with a timeline and identify the resources which need to achieve the goals of the business. Scenario planning Several strategies use scenario planning techniques to deal with the changes. The fast-changing business environment is too uncertain for us to find sustainable value in formulas of excellent or competitive advantages. The scenario of strategic planning is also used to forecast the possible challenges face and make strategies according to how effectively come out of the challenges. Scenario planning is a technique in which multiple outcomes can be developed, their implications assessed, and their likeliness of occurrence evaluated. Scenario planning is about insight, complexity, and subtlety; it is not about formal analysis and numbers. Scenario planning is depending on how quickly leaders analyze the situation and make changes in the strategy to meet the goals of the organization. It impacts highly on the vision of the organization and leads to providing competitive advantages in the market. Research about a different way of achieving objectives There are many ways to reach certain goals. Leaders need to make efforts to research various ways and adopt the best strategy to achieve set objectives and goals. Finding the different ways for completing a certain goal is very important because it offers flexibility when they are instructing their team for meeting the goal. Some goals can be achieved with a few strategies, another handsome of goals have carried several ways of solutions to achieve the goals. Once the leaders complete the research on the ways of achievement, then they need to examine closely and find the best potential way of solution. Measuring and controlling implementation Once the strategy is determined, various goals and measures may be established to chart a course for the organization. Measures help performance and control implementation of the strategy. Tools such as the balanced scorecard and strategy maps help to crystallize the strategy and analyze what are loopholes in business performance. These tools of measures help to know the financial, production, marketing, organization development, and innovation measures to get a balanced perspective. There are several advanced technologies and data availability that enable the gathering of more precise performance information and allow the managers to take a much more analytical view of their business than before. The strategy may also be organized as a series of initiatives or programs, each of which comprises one or more projects. They can also use various monitoring and feedback established, such as regular meetings between divisional and cooperative management to control implementation also. Evaluation This is the key component of strategic management which is often overlooked when planning is evaluated. There are many ways of evaluating what analyze the priorities and plans have been achieved or not, one such method is responsive evaluation. Responsive evaluation provides a naturalistic and humanistic approach to program evolution. In expanding beyond the goal-oriented or pre-ordinates evaluation design, responsive evaluation takes into consideration the program’s background condition and transaction among shareholders. It is largely emergent that the design unfolds as contact is made with stakeholders.