What is Strategic Management

It has been defined by Lloyd L. Byars as- Strategic management is concerned with making decisions about an organizations’ future direction and implementing those decisions.

Alfred D.Chandler (1962) made a detailed analysis of various inter-relationships among environment, strategy, and organization structure in 70 manufacturing firms in the US and defined strategy as, ‘The determination of the basic long term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals’.

It is pertinent to note here what Alfred D. Chandler has made reference to three basic aspects of strategic process;

i. Determination of basic long-term goals,
ii.. Adoption of course of actions to achieve these goals, and
iii. Allocation of necessary resources for carrying out these goals.

Kenneth Andrews (1965) outlines business strategy definition as a method of describing the future position of a company, its objectives, purposes, goals, policies, and plans that may be
required for guiding the company from its existing position to where it desires to be.

Andrews defines strategy as, ‘The pattern of objectives for achieving these goals and the major policies and plans for achieving these goals stated in such a way so as to define what business the company is in or is to be and the kind of company it is or is to be.”

Igor Ansoff (1965) in his book Corporate Strategy has defined strategy as, ‘The common thread among the organizations’ activities and product markets that defines the essential nature
of business that an organization was or plans to be in future. Professor William F. Glueck (1972) defines strategy as, ‘A unified, comprehensive, and integrated plan, designed to assure
that the basic objectives of the enterprise are achieved.’

Thus, you find that Strategic Management is a set of rules aimed at taking decisions for sustenance and growth of an organization in a given environment.