In order to achieve better performance and a competitive advantage for organization, managers can carry strategic management which is all about identification and description of the strategies. An organization is considered to have competitive advantage if its profitability is higher than the average profitability for all companies in its industries.
The management of strategies can also be defined as a bundle of decisions as well as act which undertakes by the manager and through which the results of firm’s performance are decided. For taking right decision related to organization, the managers must have enough knowledge and analysis of the general and competitive organizational environment.
They should consider a SWOT analysis which stands for Strengths, Weaknesses, Opportunities and Threats. The concept of this analysis is that there should be proper utilization of strengths and minimization of organizational weaknesses as well as making use of coming opportunities and threats should not be ignored. Strategic management is very helpful in planning for both predictable as well as unfeasible contingencies.
It has been applied to both small and large organizations along with the smallest organizations which face competition. They can achieve sustainable competitive advantages by formulating and implementing appropriate strategies.
In setting the objectives of strategists and proceed for achieving them, this management is very helpful as it deals with making and implementing decisions for future directions in any organization. It helps the managers for identifying the directions in which an organization is going.
Strategic management is a continuous process with the help of which a business can be evaluated and controlled as well as the industries in which an organization is involved, its competitors have been evaluated and goals and strategies have been set in order to meet all existing and capable competitors and then strategies are being re-evaluated on a regular basis for determining how it has been implemented and was it successful or needs replacements if any.
A broader prospective has been given by the strategic management to the employees of any organization so that they will be able to understand that how their jobs fits into the organizational plans as well as how it is related to other organizational members.
It is an art of managing employees in order to maximize the ability of achieving business objectives. With this management, the employees can co-relate themselves with each organizational task and that’s why the employees have become more trustworthy, committed and satisfied towards their work. They are able to understand the reaction of environmental changes in the organization as well as the response of the organizations by strategic management.