Strategic ManagementUnit-1Basic Concept of Strategic Management.The concept of strategy is central to understanding the process of strategic management. The term‘strategy’ is derived from a Greek word ‘strategos’,which means generalship- the actual direction ofmilitary force.Strategic management is a set of managerial decisions and actions that determines the long runperformance of a corporation and it is continuous task. It includes environmental scanning –bothexternal and internal and strategy formulation, strategy implementation and evaluation and control. So,it starts with environmental analysis then moves to strategic control. Its Purpose for matches its everchanging environment.Therefore, it emphasizes the monitoring and evaluating of external opportunities and threat in light ofcorporation’s strengths and weaknesses. It originally called Business policy. Strategic Management Definition– “The set of managerial decisions and actions that result in theformulation, implantation and control of plans designed to achieve a company’s objectives”Nine critical task of Strategic Management: -1. Formulate the company’s mission, including broad statements about its purpose, philosophy andgoals2. Conduct an analysis that reflects the company’s internal conditions and capabilities3. Assess the company’s external environment, including both the competitive and the general4. Analyse the company’s options by matching its resources with the external environment5. Identify the most desirable options by evaluating each option in light of the company’s mission6. Select a set of long-term objectives and grand strategies that will achieve the most desirable options7. Develop annual objectives and short term strategies that compatible with the objectives and grandstrategies8. Implement the strategic choice by means of budgeted resources allocations9 Evaluation -the success of the strategic process is-as an input for the future decision making.Need for Strategic Management1. Due to Change: -Strategic management encourages the top executives to forecast change andprovides direction and control. The firm may pro-act to the change rather than just react to it. It alsoallows the firm to take advantage of the opportunities provided by the changes in the environment andavoid threats or reduce the risk2. To provide guidelines: -Strategic management provide guidelines to the employee about theorganization’s expectations from them. This would- minimize conflict between job performance andjob demands.
3.Developed field of study by Research: -Recently there are methodological problem researches inthis field of study. More systematic knowledge in this area is available at present.