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To understand strategic management, one needs to first understand strategy. Strategy is referred to as plans and procedures which are formed to attain objectives and missions of a company. Strategic planning includes the measures that define objectives and creating strategies to attain those objectives. Strategy is different from immediate actions or measures as it is a long term plan of action which is designed to achieve a particular goal and not the immediate actions that are taken with resources at hand.
The purpose of strategic or long-range planning is to provide assistance to the company in establishing priorities and to better serve the needs and demands of the stakeholders. A strategic plan must be feasible, flexible and highly practical so as to serve as a guide for implementing programs, and evaluating how these programs are doing, and making corrections if necessary.
The development of any strategic plan requires much inquiring, discussion, and examination of the views of the management who are responsible and impacted by the plan's preparation. However, implementation is more complicated than development of the plan.
Strategic planning and management aims at building more desirable upcoming results by either
The latter measure is very hard to achieve.
Strategic planning gives direction to a business in areas such as:
So strategic management is set of management or managerial decisions and actions that determines the long-term performance of a company. It includes all the parts related like environmental scanning, strategy formulation, strategy implementation and evaluation and control of strategies.