It is a series of actions, duly analyzed and planned, that serve to organize companies, with the aim of achieving their purposes and being able to make decisions. Keep reading and discover how some authors define it.
One of the factors that organizations need to consider in order to achieve their desired goal is strategic management, which is essential for management to have the necessary information to make the best decisions. It is an instrument that helps companies respond to changes in the economic, competitive and commercial spheres. Therefore, it is important to know more about this topic.
What is strategic management?
It is made up of various actions that organizations carry out to make, in a technical and effective manner, the strategic decisions necessary to manage resources and achieve a favorable impact in the medium and long term , obtaining a competitive advantage. In other words, it means creating a plan that allows a company or business to be managed skillfully and efficiently.
The application of strategic management allows the design of a company's structures and processes to achieve its objectives in the best possible way. All of this, taking into account cpa email addresses the participation of the appropriate people, who must have a high degree of rationality in order to evaluate, define and execute the strategies .
Strategic management according to authors
To understand how strategic management involves the formulation and implementation of strategies, one must be aware of the contributions that some authors have made to this business process. The following considerations can be analyzed:
Peter Drucker
In his book The Practice of Management (1954), Drucker states that "the first responsibility of top management is to ask the question 'what is our business?' and to make sure that it is carefully studied and correctly answered." With this, he proposes defining management objectives, considering innovation, market position, productivity, employee performance and attitude, physical and financial resources, profitability, manager performance and development, and public responsibility.
Michael Porter
To understand strategic management, according to Porter, in his book Competitive strategy; techniques for analysing industries and competitors (1980), he states that “companies have to make decisions about their scope and the type of competitive advantage they seek to achieve, whether it is lower cost or differentiation.” Five years later, he stated that the superior performance of the processes and activities carried out by organizations are part of their value chain, being the basis of their competitive advantage.
Fred David
As explained in his book Strategic Management Concepts (2008), David defines strategic management as “the art and science of formulating, implementing and evaluating decisions across functions that enable an organization to achieve its objectives. It focuses on the integration of management activities and its functional areas of human resources, finance, accounting, operations, research and development and computer information systems.”