Nature & Importance

of
strategic management.
Name- Kallis Alphanso
Roll No- 02
Semester VIII
Fourth Year B.B.A L.L.B (HONS.)
Submitted To:- Prof. Uma Nehre.
❖ what is Strategic management?

Stream of decisions and actions

Practice of Recruiting

lead to

The development of an effective

strategy or strategies
to help

Achieve corporate objectives.

❖ Nature of strategic management.

❑ Effective Planning
Strategic management involves developing a plan of action that takes into
account internal and external factors, such as customer demand, competition,
market conditions, and resource constraints. This plan of action helps
organizations to maximize their resources and achieve their desired goals.

❑ Resource Allocation
Strategic management requires organizations to allocate resources efficiently. This
means that resources and budgets are allocated towards activities and initiatives
that will generate the greatest returns.
❖ Nature of strategic management.

❑ Risk Management
Strategic management involves understanding and managing risks associated
with business decisions. Risk management helps to identify potential risks, develop
strategies to minimize their impacts, and create contingency plans in case the risks
become reality.

❑ Goal Setting
Strategic management involves setting realistic and achievable goals. This helps
to ensure that activities are aimed towards the organization's desired outcomes.
❖ Nature of strategic management.

❑ Organizational Alignment
Strategic management helps to ensure that all parts of an organization are
working towards the same objectives. This alignment helps to ensure that
resources are used in the most effective manner.

❑ Effective Communication
Strategic management requires an organization to effectively communicate its
vision, objectives, and strategies to its stakeholders. This ensures that everyone is
on the same page and working towards the same goals.
 ❖ Importance of strategic management.

1. Environmental ➢ THE STRATEGIC PLANNING PROCESS INVOLVED IN STRATEGIC MANAGEMENT IS ALL

awareness:- BUT INVALUABLE TO A BUSINESS BECAUSE IT FORCES TOP-LEVEL MANAGEMENT TO

BE AWARE OF CHANGING BUSINESS ENVIRONMENTS.

2. Mission ➢ STRATEGIC MANAGEMENT ALSO HELPS TO IDENTIFY THE OVERALL MISSION OF THE
definition:- BUSINESS, SOMETHING OF UTTER IMPORTANCE TO ALL ORGANISATIONS.
 ❖ Importance of strategic management.

3.Creates long- ➢ In the strategic management planning process, specific objectives can be defined
range objectives:- for sales figures, profit margins, share of market percentages, return on
investments, and numerous other factors that top-level management can
implement to effectively measure progress.

4.Specifies policies
➢ Policies and strategies provide a framework, mostly for managers, in which senior
and strategies:-
management decisions can be made in consistent accordance with the identified
mission, defined purpose, and objectives of the organization.
 ❖ Case study
Wal-Mart

Wal-Mart’s persistently superior Pricing its products lower than those of local
profitability retailers,Practice
often putting them out of business
of Recruiting

Competitive advantage that is based upon An innovator in information systems,

a number of strategies logistics, and human resource practices.

Targeting small southern towns as well as Strategies resulted in higher productivity

the urban and suburban locations and lower costs as compared to rivals.
THANK YOU.