Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable the organization to achieve its objectives.” Generally, strategic management is not only related to a single specialization but covers cross-functional or overall organization.
- Strategic management is a comprehensive area that covers almost all the functional areas of the organization. It is an umbrella concept of management that comprises all such functional areas as marketing, finance & account, human resource, and production & operation into a top level management discipline. Therefore, strategic management has an importance in the organizational success and failure than any specific functional areas.
- Strategic management deals with organizational level and top level issues whereas functional or operational level management deals with the specific areas of the business.
- Top-level managers such as Chairman, Managing Director, and corporate level planners involve more in strategic management process.
- Strategic management relates to setting vision, mission, objectives, and strategies that can be the guideline to design functional strategies in other functional areas
- Therefore, it is top-level management that paves the way for other functional or operational management in an organization