The outburst of the Second Industrial Revolution resulted in mass production and oversupply. To regulate the number of manufactured goods, most companies needed to develop a clear vision and mission that align their organizational performance with the allocation of resources. Strategic management became a solution to the issue as it allowed to elaborate on comprehensive plans, develop a system of rules and regulations, and monitor their implementation.
This course of Strategic Management has explicitly outlined the importance of planning, implementation, and controlling the core operational activities of the company. The benefits of strategic management can be either financial or non-financial. The former constitute improved sales, profitability, and production, while the latter concern the company’s reputation in the market and its relationship with key stakeholder groups (Athapaththu, 2016).
Furthermore, it became clear how other coursework from previous classes supplement the essence of strategic management. For instance, leadership studies, explaining the leadership styles and organizational behavior models, interpret the importance of corporate structure and management techniques in the attainment of strategic goals. The basics of operation management introduce practices on how to maximize the efficiency of the organization by realizing the full potential retrieved from its valuable assets. Meanwhile, marketing techniques allow building solid relationships with consumers and strengthening positions in the industry. Overall, strategic planning provides a comprehensive vision of organizational performance and explicit guidelines on how to maximize the company’s success.
One of the most significant learning objectives in strategic management concerns strategic planning or strategy formulation. This process is crucial because it predisposes the future of any company. The formulation of strategy is a comprehensive procedure because it implies ongoing monitoring and reconsideration of the plan based on the current results. Understanding strategic planning is essential because it allows supporting the company’s reputation, aligning its interests with those of stakeholders, and utilizing its resources efficiently. Furthermore, it is necessary to consider both the internal and external environment while elaborating on strategic planning.
A thorough SWOT analysis reveals weaknesses and possible threats, explaining how they can be defeated by understanding the corporate strengths and using available opportunities. Indeed, when a firm accumulates rare resources that are difficult to imitate or non-replaceable, the organization experiences a competitive advantage (Kraja & Osmani, 2015). Overall, strategy formulation should also consider economic, political, socio-cultural, and technological changes along with the interests of customers, partners, suppliers, employees, shareholders, and the community.
Strategic management will help throughout the managerial path because it explains how and where the information from other courses could be effectively applied in leading the organization. First of all, strategic management states that trends in business and markets are always dynamic, so it is necessary to determine them promptly to adjust the mission and strategic goals of the company. Firms also need to be socially responsible and undertake the contribution expected by their community (ElGammal, El-Kassar, & Messarra, 2018). Secondly, it makes it clear how to formulate and implement a strategy. Furthermore, the reconciliation of strategic objectives and current performance is critical because it determines whether a company is moving in the right direction.
To sum up, the understanding of core principles and guidelines of strategic management is necessary to integrate knowledge from other disciplines and develop an effective managerial career further. Even though it outlines the importance of corporate governance and social responsibility based on business ethics fundamentals, comprehension of strategy formulation and planning is the most challenging. Furthermore, it is essential to comprehend how to implement and evaluate the corporate strategy and define whether it is successful or not.
Athapaththu, H. (2016). An overview of strategic management: An analysis of the concepts and the importance of strategic management. International Journal of Scientific and Research Publications, 6(2), 124-127.
ElGammal, W., El-Kassar, A., & Messarra, L. C. (2018). Corporate ethics, governance and social responsibility in MENA countries. Management Decision, 56(1), 273-291.
Kraja, B. Y., & Osmani, E. (2015). Importance of external and internal environment in creation of competitive advantage to SMEs. European Scientific Journal, 11(13), 120-130.