What Is Strategic Management? Benefits, Process, and Careers

Strategic management has become a buzzword in the business world with increased emphasis on streamlining the workforce in line with long-term business objectives. But what does strategic management really mean, and why is it so important to business strategies worldwide?

Let’s dive into the ins and outs of strategic management and analyse its key characteristics, processes, benefits and career opportunities.

What Is Strategic Management?

Strategic management is the continuous process of identifying and implementing processes to assist an organisation in achieving its long-term objectives.

The strategic management process involves multiple stages, from identification to evaluation, and utilises business resources to provide a clear strategy and structure to improve an organisation's overall performance.  

This management approach aims to adapt to the evolving business environment and emerging trends that shape the business landscape. Strategic management can be implemented at all levels of an organisation to deliver long-term results.

Importance of Strategic Management

Strategic management plays an important role in defining business goals and ambitions and shaping the direction to ensure its success.

The planning and implementation of management strategies are essential for the long-term growth of the organisation and ensure its ability to adapt and align with emerging trends.

Strategic business management is also important in aligning the workforce to work towards the shared goals and vision of the organisation. In addition to ensuring alignment, the strategic management process can identify opportunities for growth and competitive advantage.

Key Characteristics of Strategic Management

Strategic management has become an essential tool for long-term success and competitive advantage. It can be outlined by the following characteristics:

• Long-Term Vision

Strategic management is not a short-term solution to resolve and transform poor business performance. Strategic management aims to implement a long-term approach by positioning an organisation to achieve sustainable growth and aligning the workforce with long-term business objectives.

• Proactive Approach

While analysing internal and external aspects of the organisation, strategic management adopts a proactive approach to anticipate emerging challenges and trends. This aims to position the organisation to adapt to the evolving business landscape.

• Utilisation Of Resources

One of the main goals of implementing strategic management techniques is to maximise resources. Strategic management ensures resources are being used effectively to achieve the long-term objectives. 

• Continuous Process

Strategic management involves a continuous process of identification, implementation and evaluation. Maintaining this ongoing process ensures the prioritisation of business goals.

• Emphasis On Innovation and Progression

Strategic management can also be characterised by its focus on adapting to emerging industry trends and demands to ensure the organisation remains current and progressive. By promoting innovation, strategic management encourages companies to adapt and take advantage of new opportunities.  

What Are the Five Steps in The Strategic Management Process?

The strategic management process typically involves five detailed steps, which help companies identify, analyse, formulate, implement and evaluate strategies to achieve long-term business goals.

Let’s look at the five steps in detail below:

1.     Identify Objectives

The initial step in the strategic management process is the identification of long-term objectives and direction. This stage identifies the goals and values of the business and how to achieve them.  

2.     Analysis

After identifying the long-term objectives of the business, detailed research must be conducted. This involves analysing the company’s strengths and weaknesses, usually using a SWOT (strengths, weaknesses, opportunities and threats) analysis, assessing the resources and gathering insights about the current market, trends and competitor activity.

3.     Formulation

Formulating the strategy based on the analysis and insights is when a plan is made to help the business achieve the identified objectives. This stage outlines how the strategy will achieve the long-term goals.  

4.     Implementation

Once the strategy has been formulated, the next step in the strategic management process is to execute it. During this stage, an action plan will assign roles, allocate resources and ensure that a working model is in place to achieve the objectives. It is important to monitor the progress of the strategy during this stage.

5.     Evaluation

The final step of the strategic management process is the evaluation stage. This step measures performance against the objectives set during the initial step. At this stage, strategies can be adjusted and optimised after feedback and further analysis, which is an essential part of the evaluation stage to ensure future success.

Benefits Of Strategic Management

Strategic management plays an essential role in the dynamic business landscape, ensuring organisations make well-informed decisions and execute strategic implementation of plans to achieve long-term objectives.

Here are some of the main benefits of strategic management:

• Provides Direction

By defining business objectives, strategic management provides the organisation with direction and guidance to achieve its goals. The strategic management process creates a big picture for the whole organisation.

• Effective Use of Resources

Strategic management ensures that the organisation maximises the value of its resources and enables more effective resource allocation.

• Measures success

Strategic management allows organisations to measure success more accurately by setting objectives in line with the strategy and evaluating the performance of employees. Aligning  the workforce makes it easier for companies to assess their processes and systems.

• Enhanced Overall Performance

Creating measurable goals aligned with the organisation’s objectives will improve decision-making, productivity and efficiency across the workforce, enhancing overall performance.

Strategic Management: Career Opportunities

Strategy has become an integral part of management across many industries and requires professionals to identify how an organisation can achieve its long-term objectives.

Strategic management careers cover a broad range of industries, from finance to healthcare. can access roles such as Business Analyst, Management Consultant and Business Development Manager.

Strategic management professionals also possess skills in essential sectors, including finance, planning and strategic decision-making, which enables them to pursue entrepreneurial opportunities.

Study a Strategic Management Course At LSBF

If a career in strategic management appeals to you, check out the diverse range of management programmes offered at the London School of Business and Finance.

Explore our innovative postgraduate management programmes, including the short courses in Strategic Leadership and Change and Strategic Management and Leadership.

LSBF also offers students the opportunity to tailor their education by choosing one of four courses, including International Business and Management and Leadership, during the Postgraduate Certificate/Diploma in Management programme.

Discover how LSBF can enhance your strategic management career by pursuing a course tailored to your career goals today.