Business always is subject to factors that affect the firm’s function as a whole may it be profit or non-profit oriented. These factors are the ones attributed for the both success and failure of a business. For the profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. In this manner, the management of that particular organisation should be guided by strategic management principle to be able to attain its business goal. As mentioned, “Strategic management can contribute significantly to organisational performance; however, its practice can have limitations.” First and foremost, the purpose of this paper is to critically evaluate the statement above regarding the concept of strategic management. Herein, potential benefits and limitations of the implementation of strategic management will be discussed. In addition, this paper will also try to give some insightful details about the key elements of strategic management which is strategic analysis, choice and implement and will provide some interrelated nature of such elements.
The Concept of Strategic Management
In the marketing concept, there are many approaches that can be used in order to make a company more competitive and successful. Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organisation to attain its objectives. As this definition entails, strategic management gives emphasis on integrating management, marketing, finance, production/operations, research and development and computer information systems to achieve organisational success. The term strategic management is also relate synonymously with strategic planning. Strategic management is guiding an organisation relative to challenges and opportunities appearing in the contingent environment. This environment is composed of those external elements that most directly affect organisational goal achievement and new goal development. Thus, organisation system design and management should complement strategic actions taken for productive subsystems, as well as those providing output delivery and other support functions for the organisation. To the extent possible, the organisation bases its actions on strategic planning that, rather than a one-time effort, is an ongoing process of adaptation of original conceptions of mission, goals, structure, roles, and so forth relative to environmental dynamics. Furthermore, due to the existence of competitions within and outside the marketing arena, it is therefore very significant for a company to establish strategic management and set a strategic plan for its development and improvement. It is for the reason that the twenty-first-century realities of globalisation, rapid changes in technology, increasing competition, a changing workforce, changing market and economic conditions, and developing resource shortages all increase the complexity of modern management. Whereas strategic planning was a competitive advantage in the past decade, it is a necessity of global thinking in this century. Planning strategically is certainly a new requirement in the global business world. In order to survive the new business challenge, global thinking and practice must permeate all corporate activities. Successful companies are, of course, the first to consider the global marketplace as their arena for competition. According to, strategic management has become a vital part of most, if not all, organisations. “Almost all organisations of any reasonable size have some kind of strategic planning.” More importantly, strategy implementation has been heralded as the key to corporate strategic success.
Potential Benefits and Limitations of Strategic Management
“Strategic management can contribute significantly to organisational performance; however, its practice...