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What is Strategic Management? Classify the basic functions of strategic management.

Strategic Management:

Strategic management is the process of formulating and implementing strategies to achieve an organization's long-term goals and objectives. It involves analyzing the internal and external environment, making decisions about resource allocation, and executing strategies to achieve the desired outcomes.

Basic functions of strategic management:

The basic functions of strategic management are essential for organizations to achieve their long-term goals and objectives. These functions include forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and evaluating strategy. Let's discuss each of these functions in detail:

  1. Forming a strategic vision: This function involves developing a clear and compelling vision of the organization's future. The vision should be based on the organization's mission, values, and goals. It should provide direction and motivation to employees and stakeholders, and guide decision-making processes. A strategic vision helps the organization to focus its efforts and resources towards a common goal.
  2. Setting objectives: Once the strategic vision is formulated, the next function is to set specific, measurable, and achievable objectives. These objectives should be aligned with the organization's mission and vision. Objectives provide a roadmap for achieving the desired outcomes and help to clarify priorities.
  3. Crafting a strategy: Crafting a strategy involves identifying the best course of action to achieve the objectives. This function requires analyzing the internal and external environment, identifying strengths and weaknesses, and assessing opportunities and threats. Based on this analysis, the organization can formulate a strategy that leverages its strengths, mitigates its weaknesses, and takes advantage of opportunities. The strategy should be unique and differentiate the organization from its competitors.
  4. Implementing and executing the strategy: This function involves putting the strategy into action. It requires allocating resources, developing action plans, and monitoring progress. Effective implementation and execution are essential for achieving the desired outcomes. This function requires strong leadership, communication, and coordination among different departments.
  5. Evaluating strategy: Evaluating strategy is a continuous process that involves monitoring progress towards the objectives and making necessary adjustments. This function requires measuring performance, identifying deviations from the plan, and taking corrective action. Evaluation helps to ensure that the organization is on track to achieve its goals and objectives.

In summary, the basic functions of strategic management are critical for organizations to succeed in a competitive environment. These functions include forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and evaluating strategy. Each function is interdependent and requires continuous review and adjustment to ensure the organization's success.

Copyright @Anisur Rahman

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