IMPORTANCE OF STRATEGIC MANAGEMENT TO BUSINESS ORGANIZATIONS

GROUP MEMBERS
AHMAD YAR (SP19-BBA-002)
HAMZA NASEER (SP19-BBA-017)
TAWSEEF ALAM (SP19-BBA-026)
RANA IBTASAM (SP19-BBA-029)
 DESCRIPTION
• The author defined the strategy as the action plan of company’s management in order to run
and conduct different business operations successfully.

• A firm’s strategy consists of the competitive moves that it uses to gain competitive
advantage over its competitors in the marketplace and different business approaches that
managers often use to attract and satisfy their customers, successfully grow their business,
compete successfully and to achieve the desired level of firm’s performance.
 TWO REASONS REGARDING IMPORTANCE
OF STRATEGY
1) First reason is that the company’s management needs strategy to identify how the
organization’s business will be conducted. A well-developed strategy is like a prescription
for company’s management for conducting business operations, its road map in gaining
competitive advantage and its gameplan for attracting & satisfying its consumers & to
improve its financial performance.
2) Second reason is that a company that is focused on strategy is more likely to perform well
in the marketplace than a firm whose management considers the development of strategy
as secondary or waste of time & effort and puts its priorities elsewhere.
 STRATEGY MAKING PROCESS
Consists of 5 interrelated phases
1) Develop strategic vision
2) Set objectives
3) Create strategy to obtain goals
4) Implement and execute strategy
5) Evaluate performance & taking corrective measures
 JUSTIFICATION
Strategic management provides number of benefits
1) It helps organizations in conducting internal & external analysis that tells firms their
strengths that they could use to achieve a desired reputation in the marketplace that it
should overcome otherwise it may have serious consequences for the company and its
image publicly.
2) It also reveals the strengths & weaknesses of the firm’s competitor that could become an
opportunity or threat for its business in future.
 JUSTIFICATION
• In the development of mission statement, strategic management helps firms in understanding
what factors it needs to consider so that it could develop an attractive and effective mission
statement that could help a company in achieving its objectives.
• Strategic management provides directions not just to company’s management but also to its
employees. It gives the employees a road map on what their company is planning to achieve
and for that what their company expects from its employees.
• Strategic management is not one time policy but rather it is a continuous process to monitor
and test an organization’s activities that might result in greater operational efficiency, market
share & profitability.
 LITERATURE REVIEW
• In today’s world, the main aim of organizations is to develop those strategies that would help
in producing the best service in an optimal and productive manner.
• And that is only possible with having long-term missions to be able to adopt their business
in a rapidly changing environment.
• So, for that reason, companies have to develop the required strategies and transfer them into
practice.
• Strategic management assists the organization in introducing innovation on time and take
advantages of new opportunities in the environment.
 LITERATURE REVIEW
• Moreover, Strategic management allows an organization to base their decisions on long-term
goals and objectives rather than focusing on short term gains.
• Furthermore, those who oppose the process of engaging oneself in strategic management
says that goals should be vague and general.
• However, a large number of people perform exceptionally well when they know what
organization expects from them and where the firm is going.
• Strategic management provides a strong incentive to the management and the employees in
order to achieve company’s objectives.
 HOW THE TOPIC IS DISCUSSED IN THE
SELECTED ITEM
• In the selected item, the writer of the article started the topic by introducing what strategic
management actually is and how it can provide positive results to an organization if
implemented with great focus and dedication.

• The article describes the strategic management as the process that involves strategy
formulation, implementation and evaluation of the results to ensure that organizational long-
term objectives are achieved in an efficient and effective manner.
 HOW THE TOPIC IS DISCUSSED IN THE
SELECTED ITEM
The writer has mentioned and explained the steps that has to be followed to develop an
effective strategy. These steps are
1) Development & Communication of Strategic Vision
2) Setting Objectives
3) Crafting a strategy
4) Implementation and Execution of Strategy
5) Evaluating strategy and taking corrective measures
 SIGNIFICANCE OF SELECTED TOPIC
• Strategic management is based around an organization’s clear understanding of its mission;
its vision for where it wants to be in future; and the values that will guide its action. The
process of strategic management requires commitment to strategic planning, a subset of
business management that involves an organization’s ability to include short- & long-term
goals.
• The importance of strategic management in running business organizations cannot be
ignored. Developing a strategic vision which sets a critical direction and guides how to
allocate resources to different departments is the key.
• Moreover, crafting strategy, effective implementation, monitoring, evaluating performance
& developing corrective measures where needed are some of the critical aspects that helps
organizations in creating and maintaining sustainable competitive advantage.
THANK YOU
VERY MUCH