Define Strategic Management and describe its relationship to
Define Strategic Management
Strategic management can be defined as an aspect or subset of management that clarifies the purpose of an organization and manages subsequent processes needed to achieve the goals specified by that purpose. Clarification of the purpose of an organization places the expectations of management in context and helps provide clear direction for the entire organisation and its environment. This provides a broader perspective for each stakeholder, through a better understanding of their roles within the organizational plan and how this relates to other stakeholders. This, in turn, facilitates and encourages the successful amalgamation of different functional areas within the wider organization, in an effort to ensure productive cooperation and communication between the various stakeholders. The purpose of the organisation also provides a means with which to measure the performance of the organisation. Typical strategic management processes, which are designed to achieve the goals specified by organisational purpose, include: environmental analysis, strategy formulation, strategy implementation, and strategy evaluation. Environmental analysis involves the gathering and analysis of information from factors that influence the organization. Strategy formulation assesses the best possible methodology, utilised by the organisation, for successfully accomplishing the objectives necessary in realising the organisation’s goals. The strategy implementation process initiates the managerial method decided upon and organises allocated recourses appropriately. Once an organizational strategy has been implemented, strategic evaluation processes periodically measure the performance of the strategic factors in place, making sure that they are in alignment with the objectives set by the organisation.
Its relationship to Project Management
Strategic management methods and techniques, used by…