Question & Answer: What is strategic management? How can it affect the decisions in a business? In 100 words or more…

Expert Answer

Strategic Management:- Strategic management can be defined as identification and description of different types of strategies which can be adopted by the management in order to obtain better and desired performance and achieving competitive advantage over the competing firms. Strategic management is the combination of various decisions and actions which are taken by the management of a firm to improve the performance of the company.

Strategic management is nothing but to plan for both predictable and unfeasible contingencies. It is a manner in which the different objectives are derive from the strategies and performing in such a manner so that these objectives can be accomplished.

Impact of Strategic Management on Decision Making:- The process of strategic management involves the establishment of company’s vision, mission, objectives and goals do that it can be better equipped with dealing with different types of predictable and unpredictable factors and can gain competitive advantages over competitors. Thus all the decision which will be made in the organisation at different level of hierarchy will be governed by the strategic management in such a manner that all the objective of organisations can be fulfilled. Strategic management have a very critical role in financial and operational decisions.