Page 7 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 1: Introduction to Strategic Management
Ginni Nijhawan, Lovely Professional University

Unit 1: Introduction to Strategic Management Notes

CONTENTS
Objectives

Introduction
1.1 Definition of Strategic Management

1.2 Nature of Strategic Management
1.3 Dimensions of Strategic Management

1.4 Need for Strategic Management
1.5 Benefits of Strategic Management

1.6 Risks involved in Strategic Management
1.7 Strategic Management Process

1.8 Summary
1.9 Keywords

1.10 Self Assessment
1.11 Review Questions

1.12 Further Readings

Objectives

After studying this unit, you will be able to:
State the meaning, nature and importance of strategic management
Explain the dimensions and benefits of strategic management
Identify the risks involved in strategic management
Discuss the strategic management process

Introduction

Strategic Management is exciting and challenging. It makes fundamental decisions about the
future direction of a firm – its purpose, its resources and how it interacts with the environment
in which it operates. Every aspect of the organisation plays a role in strategy – its people, its
finances, its production methods, its customers and so on.
Strategic Management can be described as the identification of the purpose of the organisation
and the plans and actions to achieve that purpose. It is that set of managerial decisions and
actions that determine the long-term performance of a business enterprise. It involves formulating
and implementing strategies that will help in aligning the organisation and its environment to
achieve organisational goals. Strategic management does not replace the traditional management

LOVELY PROFESSIONAL UNIVERSITY 1