The concept of Strategy Management has its roots in 1950s economic theory based on industrial-organizational approaches. Peter Drucker, also known as the Father of Modern Management Theory, believed that setting objectives and monitoring company growth should permeate the entire organization, top to bottom.
Since the development of Strategy Management, there have been many definitions of Strategy Management as there have been many books written in this area.
One of them could be that Strategy Management is the ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives.
All definitions suggest the importance of decisions and actions to ensure organizational objectives are achieved.
Whether an organization is small or large is irrelevant when it comes to Strategy Management. Indeed, even the smallest companies need to know how effective they are within their industry and take the appropriate actions to achieve their desired outcome for the future.
A business without long-term goals and objectives will struggle to set company direction, focus efforts and gain competitive advantage. Yet by applying Strategic Management, organizations can not only survive, but thrive.
Therefore, Strategy Management has two-fold objectives:
To gain competitive advantage, with an aim of outperforming the competitors, to achieve dominance over the market.
To act as a guide to the organization to help survive changes in the business environment.
Strategy Management is of utmost importance because:
It guides the company to move in a specific direction. It defines the organization's goals and fixes realistic objectives, which are in alignment with the company’s vision.
It assists the firm in becoming proactive, rather than reactive, to make it analyze the actions of the competitors and take necessary steps to compete in the market, instead of becoming spectators.
It acts as a foundation for all key decisions of the firm.
It attempts to prepare the organization for future challenges and play the role of pioneer in exploring opportunities and also helps identify ways to reach those opportunities.
It ensures the long-term survival of the firm while coping with competition and surviving the dynamic environment.
It assists in the development of core competencies and competitive advantage, that helps in the business survival and growth.
It allows employees to converge and unite around a common vision and the desire of achieving common objectives that are shared and understood by all.
In order to achieve their Strategic Objectives, Organizations could follow the step-by-step process below:
In this theme you will learn how to manage your company strategy and ensure that benefits derive from project outputs and outcomes.