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Home > QFINANCE Dictionary > Definition of strategic management

Definition of

strategic management

General Management

management for longer-term objectives the development of corporate strategy, and the management of an organization according to that strategy. Strategic management focuses on achieving and maintaining a strong competitive advantage. It involves the application of corporate strategy to all aspects of the organization, and especially to decision making. As a discipline, strategic management developed in the 1970s, but it has evolved in response to changes in organization structure and corporate culture. With greater empowerment, strategy has become the concern not just of directors but also of employees at all levels of the organization.

Recommended Further Reading (Term count)
  • Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion
    H. Igor Ansoff (1965)
    Was the first book to concentrate entirely on strategy, and remains one of the classics of management literature. Provides a powerful, rational model by which strategic and planning decisions can be made. Ansoff was the originator of the strategic management concept, and responsible for establishing strategic planning as a management activity in its own right.
  • Multinationality and Financial Performance
    by Alan Rugman
    Most of the world’s 500 largest firms have extensive international operations; indeed, these firms average 35% of their sales in other countries. Finance officers and senior executives involved in strategic management usually assume that such firms are operating globally. This is a bad mistake, since recent academic research has demonstrated that the vast majority of the foreign sales of these firms are actually made within the firm’s home...
  • Multidimensional Performance Measurement Using the Balanced Scorecard
    by Priscilla Wisner
    For generations, many businesses have measured organizational success based on a narrow set of financial performance measures, such as operating and net profit, return on investment, and earnings per share of stock. Financial performance measures are valuable in that they capture the economic consequences of business decisions; however, they tend to be “lagging” indicators of performance that report the financial effects of operational business...
  • Assessing Opportunities for Growth in Small and Medium Enterprises
    by Frank Hoy
    Many companies experience rapid growth at some stage of their life cycle. For some, this may happen soon after they are launched. Others have multiple spurts, followed by a leveling-off period or even a decline. A consistent characteristic of the growth stage is that demands exceed existing resources. Consequently, business owners must be creative in acquiring and managing the resources needed to seize growth opportunities.Successful...

Definitions of ’strategic management’ and meaning of ’strategic management’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’strategic management’ and other financial terms with our online QFINANCE Financial Dictionary.

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