SUBMITTED BY ANOBA ZAHEER

SUBMITTED TO: SIR ISMAIL RAMAY

NDU-BS-20/S-1696
STRATEGIC MANAGEMENT

ASSIGNMENT 2

Q.WHY HAS STRATEGIC MANAGEMENT BECOME SO IMPORATNT

TO TODAYS CORPORATIONS?
ANSWER:
What Is Strategic Management?
Strategic management is the management of a firm's resources to successfully achieve its goals and
objectives. It’s an action plan to ensure performance targets are met, and the business continues to grow.
So therefore its importance can be seen in its definition, strategic management provides overall
direction by developing plans and policies designed to achieve objectives and then allocating
resources to implement the plans. Ultimately, strategic management is for organizations to gain a
competitive edge over their competitors.
The concept of strategic 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. Whether an organization is small or large is irrelevant when it comes to
strategic management. 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.
As Strategic management refer to management of a corporation resources in order to successfully attain
its objective as well as the goals. Companies that engage in strategic management make more profit
and thrive well. Strategic management gives overall direction by establishing policies and also plans that
are designed to achieve objectives as well as allocate resources to implement those plans. It make sure the
performance target or corporate objectives are met. Additionally, strategic management help in
increasing market share and operational efficiency
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. Here’s why strategic management can drive better performance.

Strategic Management to Gain a Competitive Edge

In a marketplace where workplaces are continually being disrupted through technological innovation,
strategic management can be the key to delivering a solid bottom line. Company executives who have a
strong grasp of their own organization’s products or services and an in-depth view of what their major
competitors will do next, can forecast and plan timely business decisions. It also means they can prepare
for future opportunities and possible risks.
Developing a strategic vision requires an understanding of global trends, the competitive landscape and
stakeholder expectations. Once a firm knows what its mission is, the right resources can be allocated to
achieve that plan. Through strategic decision-making and commitment to strategic planning,
organizations can strengthen their long-term competitive position.
Apart from financial gains, strategic management can also boost workplace motivation. Setting effective
goals for employees and involving them in organizational objectives can improve overall performance.
Studies show dramatic increase in both employee and business performance when goals are aligned.
But it’s not enough to just craft and execute a strategic management plan. Firms that continuously
measure and review the results of their strategic approach are more likely to achieve success and see
improved financial performance. Firms that continually assess whether they are performing according to
their corporate blueprint can respond to fast-changing market forces. They can move the company along
the strategic course that has been charted for it.

How strategic management become so important to today's corporations:

Strategic management, especially when done well, is important for a business' long-term success. The
business will then create clear, well-defined plans that it will then put in action to achieve its goals and
to align its business activities, so that the business will be in harmony with those goals.

Strategic management is pretty important in today's corporate world as it allows corporations to start
activities and create and impact by adopting a proactive approach rather than a reactive one to get
full control over its future. Every organization has some goal in their mind which ultimately become
their purpose of existence. So all the future activities are directed and aimed towards that goal.
Organizations make sure that they align all their interior and exterior resources for the achievement of me
goal Strategic planning helps the organizations to focus on internal factors and make sure it
encourages and motivate employees by giving a direction.

 Strategic Management is important for overall goal setting and direction of an Organization.
Strategic Management is performed to plan, execute, monitor, and analyze organization
goals and purposes.

 It helps to identify macro and micro levels factors at different stages of goals implementation. It
enables organization to understand stakeholders at each level of organization.

 Strategic Management helps to identify the Macro level, National level and Industrial levels
forces effecting organization decision making.

 By this we imply that the organization is composed and keep running as per standards which set
an objective which coordinates the properly considered desires of the partners work out a
plausible technique to accomplish that objective put set up an association which can complete the
 methodology and accomplish the objective set up a control and reporting capacity to allow
administration to drive the association successfully and make fundamental conformity to the
methodology or even the objective

As Harvey MacKay said, "Disappointments don't plan to fizzle; they neglect to arrange. Furthermore,
Thomas Edison broadly said "favorable luck is the thing that happens when opportunity meets with
arranging." Examine any fruitful business and you will watch the high and trained level of arranging
which indisputably prompted that achievement - and the world is loaded with disappointments who
neglected to arrange. Indeed, even numerous that have therefore fizzled frequently did as such in light of
the fact that the significance of key administration inside of the association decreased and with it the
crucial structure and perceivability required to accomplish objectives and stay away from pitfalls. Hence,
management of strategic management of business is important to stay away from downsides of
corporations.

Importance of Strategic management in Today’s Organizations

 Research shows that firms which involve in strategic management usually overtake those
that don’t. The accomplishment of a suitable fit or match among an organizational strategy and
its processes, structure and environment has encouraging results on the performance
of organizations.

 An organization may not have enough capacity to pursue instinctive judgments once it becomes
big, has management layers, or its environment deviates substantively.

 As the environment of world turns to be more multifaceted and fluctuating, strategic

management is utilized by today’s organizations as a key to make their environment more
efficient.

 In a marketplace where workplaces are continually being disrupted through technological

innovation, strategic management can be the key to delivering a solid bottom line.
 Company executives who have a strong grasp of their own organization’s products or services
and an in-depth view of what their major competitors will do next, can forecast and plan timely
business decisions.
 It also means they can prepare for future opportunities and possible risks.
 Developing a strategic vision requires an understanding of global trends, the competitive
landscape and stakeholder expectations. Once a firm knows what its mission is, the right
resources can be allocated to achieve that plan.
 Through strategic decision-making and commitment to strategic planning, organizations
can strengthen their long-term competitive position.
Apart from financial gains, strategic management can also boost workplace motivation. Setting
effective goals for employees and involving them in organizational objectives can improve overall
performance. Studies show dramatic increase in both employee and business performance when goals are
aligned.
But it’s not enough to just craft and execute a strategic management plan. Firms that continuously
measure and review the results of their strategic approach are more likely to achieve success and see
improved financial performance. Firms that continually assess whether they are performing according
to their corporate blueprint can respond to fast-changing market forces. They can move the company
along the strategic course that has been charted for it.
So I believe with all the reasons mentioned above and detail explanation provided it is clear how strategic
management is important and on a concluding note I would it can be said that it allows companies to
analyze its current capabilities and its operating environment, identify long-term threats and
opportunities, and organize the company’s resources to address them. Strategic management will
maintain the alignment of a company’s activities and resources with its vision, mission, and strategy
to improve financial and operating performance. Strategic management provides the means to
convert a strategic plan to a framework that provides feedback for decisions and actions and allows
the strategic plan to evolve as a company’s operating environment, objectives, and operating requirements
change. Utilizing strategic management will ensure a corporation’s long term success because
leaders at certain intervals will repeat the strategic planning process to ensure the strategic plan
remains an effective operational guide.