The Importance Of Strategic Management

Economic system is a complex of activities that must form the background of management. Enterprises need plans, organize and control and all these will function only with effective organization. Henri Fayol was the first person to propose functions of management in 1916. These elements, planning, organizing, leading, and controlling are called “managerial functions”. The functions of management define the process of management as provide a useful way of organizing information about management.

First, one of the managerial functions is planning. A plan is a blueprint for action that predetermined the activities necessary for an organization to realize their goals. Planning defined as setting goals and defining the actions or strategies necessary

Strategic plan affects organization long-run performance and provides direction by defining its strategic approach to business. The steps in the strategic management process are assessing the mission of an organization, SWOT analysis, strategy formulation, strategy implementation to focus on execution, evaluation and control to achieve effectiveness and efficiency.

For example, Apple Company uses the strategic planning model as their managerial planning. A strategic plan has set out to develop the organisation 's strategy. According to some studies conducted by Rob Grant, the process of strategic planning is done which is as follows: (“A Strategic Planning,” 2015)

1. Initial guidelines: The strategic plan will based on some guidelines about the external environment.

2. Business level planning: This is where the business units draw up strategic plans to present to the corporate centre and discuss with the business managers. In time, decisions will be agreed.

3. Corporate planning level: A corporate planning department may be undertaken this organization and then the corporate board will approve the corporate

The process of determining the tasks to be done, who will do them and how those tasks will be managed and coordinated. It is the process of bringing together physical, financial and human resources and developing productive relationship to achieve organization goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. The process of organizing involves: developing the foundation and developing organizational design.

In the organization of human resource management, Apple’s employees come from various parts of the world and the company is deep in keeping a diverse workforce in its regions to improve the knowledge and expertise of the people from different parts of the world. Nowadays, since cross international business is growing, Apple’s strategy to keep a diverse workforce in its labour which leads the company in the right direction. (Xbechtelar, n.d. , p.2