Scope of Strategic Management
An organization’s long-term goals and objectives are formulated, implemented, and evaluated as part of strategic management, a comprehensive and dynamic process.
To achieve a sustainable competitive advantage and meet stakeholder needs, the organization must align its resources, capabilities, and external opportunities. Strategic management encompasses several key areas and has a broad scope.
Some of the scope of strategic management are as follows:
Analysis of the External Environment:
Strategic management begins with a study of industry trends, market conditions, technological advancements, and regulatory changes in the external environment.
To formulate effective strategies that leverage opportunities and mitigate risks, it is crucial to understand the external environment to identify opportunities and threats that the organization may face.
Strategic Management Basics:
- Begins with studying external factors.
- Focus on industry trends, market conditions, technological advancements, and regulatory changes.
- Importance of comprehending the external environment.
- Identifying opportunities and threats is key.
Effective Strategy Formulation:
- Formulating strategies to leverage opportunities.
- Mitigating risks by addressing identified threats.