Strategic Planning And Strategic Management

Strategic management as a term and concept is not new. The term was first used in the 1970s, and it meant that a staff of strategic planners more or less thought up strategic programs and then tried to sell them to decision makers. In the 1990s, the view of strategic planning and strategic management is much different. Goodstein, Nolan, and Pfeiffer’s definition of strategic planning takes us away from the notion that strategic planning is a staff job and focuses us more on a process that requires the senior leaders of an organization to set its strategic direction. It is defined as the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future .

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That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization’s domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies. This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes.

Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace? For example, managers need to determine if the firm

It’s because of a leadership that organization gets their desired tasks and targets.

Management is responsible for people and resources in a unit according to rules or values that have already been set while the leadership set a direction to the people in group.

Good leadership and effective management are always the key of success in any organization so both of these are the skills which going side by side without management a good leadership can only satisfy for the time being not in a long term same as an effective management is nothing without the good leadership.

When great leadership is jointed with effective management, you are able to set a direction and be able to allocate the resources the way you want. Not only that, you will achieve your goal. The mission is the short, formal written document how the leaders lead their employees, what purpose the leader lead the organization. And leadership is the process how to lead them; this process is strategy. Iceland leaders lead their employees for this purpose that is their missions to run their business. To fill up their mission the leader lead employees that is