Strategic Management Definition
Strategic management is the art and science of formulating,implementing and evaluating cross function decision that enable to business to achieve its objectives. Strategic management can also be defined as the formal process for defining company vision & mission, assess internal & external environment. formulate strategies under resource constraints, implement strategies,evaluate the strategies implementation and feedback in case of strategy failure, implementation mistakes for re-assessing.
Integration of Business Functional Areas
As the definition implies strategic management integrate the functional areas includes marketing,finance,operations,management, human resource,research & development and Information technology to achieves the business objectives.The term strategic management also referred as strategic planning, strategic management is most often used in business word and strategic planning in academics.
Purpose of Strategic Management
The purpose of strategic management to increase the efficiency of business by aligning the processes, proper resource utilization, show the clear direction. Strategic management help to identify the opportunities available in the industry and tells the way to exploit the opportunities.
History of Strategic Management
Strategic management term originate in 1950s and was very popular in 1950s most of the business people believe strategic management is the solution of their problem. The process of strategic management become mature in the period of 80s, best practices are introduced and in 90s majority of businesses adapt it.