The Importance Of Strategic Management

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The presence or absence of a fair process can make or break company´s best execution efforts (Kim & Mouborgne, 2005, p.172). For this it is very important for an organization to have a clear strategic plan. By this organization can identify their current position and can also measure their future growth. Organizational leaders are the main bodies who identify the needs, organization trying to satisfy along with the identification of the subject of the need and value to satisfy those needs (Sonia et al., 2013, p.112). All the strategic plans and processes are controlled by some process, which is known as strategic management and can be defined as “the art and science of formulating implementing and evaluating cross functional decisions that…show more content…
has emphasized the importance of strategic management in an era of paradigmatic chaos and explained this by saying it is very important for an organization to develop and execute an organizational plan. The main purpose behind having a strategic plan is to create a road map for accomplishing the mission, vision and goals of an organization. In order for an organization to compete in their respective industry, it is a must to have some strategy. These are the executives who can optimize the performance of their organization by continuing to reshape of their organizational strategic plan (Sonia et al., 2013, p. 114). Critiques of the formal planning system, however, argues against the current management and planning system as according to them, all of us are currently living in turbulent and uncertain world, which leads to more dominance of uncertainty, complexity and ambiguity, which means small change can bring larger or unpredictable impact on outcomes (Hill & Jones, 2008, p. 20). This also leads us to believe that the strategy making process is a complex process and need to be changed when needed. For this it is the primary responsibility of the CEOs as they are chief organizer and attention regulator, to make strategic directions and plans for the organization and also guide actions that will actually realize those plans (Calori, Johnson, and Sarnin, 1994; Gioia and Chittipeddi, 1991). However, all these decisions are taken by top management team, which can be defined “as those managers who actively participated in the decision in question”. The teams were defined this way because the outcomes of decision are largely a function of who is involved in the decision process (Hickson et all., 1986: Jackson, 1992). CEO´s are also included in the top management team who play a critical role in creating and implementing a company‘s strategy. They also address complex and ambiguous issues that involve a large amount of organizational resources (Mason &
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