The Importance of Strategic Management

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If you have two choices one in which things takes place in a disciplined way, everything is well organized and the other in which things takes place in a cris-cross manner, everything is haphazard. Which one will you choose? All of you will go with the first option. Obviously, anyone would prefer a procedure which goes in a disciplined way. This is where strategic management comes into play. The importance of strategic management increases proportionally with the size of the organization or task performed. A well-planned strategy and carefully executed action can transform your efforts into exemplary success.

Let us get more of the strategic management-

In strategic management, steps taken by the top management of the company are analyzed. This includes mission, vision and objectives of the organization, its developing policies and plans, analysis of various projects and programs which are designed to achieve the objectives, also, allocation of its resources for the effective implementation of organization policies.

What are the various approaches for strategic management?

There are three approaches for strategic management-

  1. Bottom-up
  2. Top-bottom
  3. Collaborative

Bottom – up approach:-
In this, employees submit their proposals to their managers who pick up the best ideas out of all. This is the part of a capital budgeting process in general. Assessment of proposals is based on the financial ground. Financial parameters such as investment return, cost-benefits analysis are taken into consideration. One should avoid incorrect estimation of cost and benefit, which is a common error here. Those proposals who receive approval forms the substance of the strategy.

Top – down approach:-
This is the most common approach so far. In this, the top authorities of the company, CEO and the board of directors decide the policies and overall strategy based on which the company moves ahead. In this strategy, each unit adapts to the new approach which flows it down.

Collaborative approach:-
Instead of using bottom-up or top-bottom approach independently some organizations prefer collaborative approach for strategic management that surface new ideas in the process leveraging advances in information technology.

Why choose strategic management course with iACT Global?
Strategic management is in great demand everywhere as this is a master key to the success of all types of business or services. At iACT Global we provide you the knowledge and guidance by our experts from across the country. You can access to the stuff by iACT Global on our YouTube Channel.

Happy learning.