The essence of strategic management comes down to revealing such crucial issues as characterizing the current situation of an enterprise and creating all the conditions for achieving its desired position, which would be most attractive to it, after a certain period, as well as determining ways and means to achieve such a situation.
In this regard, managers must understand the current situation in the enterprise in order to make decisions about where to move in the future. This requires an information basis that can provide a strategic decision-making process that is appropriate for the current situation.
The essence of strategic management is largely determined by such a concept as orientation toward the future. In this regard, for managers is very important the ability to determine the goals that the company should strive for. The implementation of the chosen strategy involves the adjustment of the two previous steps. At the same time, the available resources, especially the organizational structure of the enterprise, the management system, organizational structure, personnel, on which the success of the implementation of the strategy largely depends, play a huge role.
In content, the essence of strategic management consists in referring to the basic processes taking place in the enterprise, with the utmost attention paid to the capabilities of the enterprise to build up its own strategic potential.
At the same time, the strategic decisions made are oriented towards the future, are associated with uncertainty and are associated with the involvement of additional resources. They are designed for long-term and extremely serious consequences. Examples of such decisions can be the reconstruction of an enterprise, the introduction of new products, advanced technologies, a change in the organizational structure, access to foreign markets, mergers with other enterprises, etc.
The essence of strategic management is reflected in its characteristics such as innovativeness of its nature, focus on long-term goals, the presence of many alternatives, subjectivity, irreversibility and long time periods for the onset of consequences.
The main idea that expresses the essence of strategic management is the need to shift the focus of management to the environment in order to make it possible to quickly respond to upcoming changes and environmental challenges.
The concept and essence of strategic management are expressed through strategy - the process of making complex strategic decisions at the highest level of leadership and organizational hierarchy. It is expressed in determining and establishing the connection of an enterprise or organization with its immediate environment for the implementation of the chosen goal through the rational distribution of resources, which allows you to effectively and efficiently affect the work of the company and all its divisions.
The essence and objectives of management are manifested in management activities for setting and further implementing long-term goals, maintaining positive and effective relationships between the company and its environment in accordance with the goals and internal capabilities.
The conceptual apparatus of this type of management has common features with such a concept as “operational management”. But it differs from it in principle positions.
Strategic management is one of the most important factors for the survival of enterprises and firms in a competitive market. However, it should be recognized that today many organizations are characterized by a lack of strategies, which in many ways leads to their defeat in the fight against competitors.