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What is Strategic Management?

Strategic management involves using strategy to achieve a firm's objectives. A firm that has a strategic management approach will have clear organisational processes ( at all levels of the firm) designed to achieve the firm s objectives, mission statement and vision.

What is Strategy?

Strategy is about how you do something.

A business will have objectives; Strategy is how the business plans to achieve those objectives. Objectives will be the same for many businesses but “how” each firm achieves (their) objectives is different.

Firms aim to make a profit that is the objective but there are many different ways to make a profit. For example if firm A and firm B set an objective to make £1000 profit, they will need a strategy to achieve this. Firm A decides to sell bananas to make £1000 profit and firm B decides to sell apples to make £1000 profit, their business plans may look like this.

The objective for both firms is the same but the way (strategy) they have decided to achieve that profit is different.

 

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