Question

What accounts for the shift from strategic planning to strategic management? In which industries or companies is this essential? Why?

Answer 1

Answer:

Given that::

What accounts for the shift from strategic planning to strategic management? In which industries or companies is this essential? Why?

Strategic planning often emphasizes a top-down approach. Senior management and specialized strategic planning units develop goals and objectives that are then given to the next level of management for implementation.

The problem with this approach is that it ignores the ideas and perspectives of Manager throughout the organization who are typically much closer to the day-to-day realities of the marketplace.

Strategic management evolved in the 90s and expanded the concept of strategic planning to the entire management structure. Under this approach, all managers are involved in the formulation and implementation of the company’s goals and strategies.

Furthermore, these managers are encouraged to think strategically and, in some instances, given far more autonomy to act strategically.This trend towards strategic management has been most visible in companies in rapidly changing industries or environments.

When rapid response was essential, the organization was forced to rely more on the front-line manager handling the situation. There just wasn’t enough time to allow for a formal review of the proposed action by top management.

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