How Strategic Management Evolves

How Strategic Management Evolves
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Abstract Strategic management is a vital tool in any corporation because there are so many factors in business which have to be considered before unveiling products and during the normal operations. Strategic management offers a broad picture of the corporation’s respective industry, the overlying factors such as the nature of the economy, consumer information, and also the competition’s strategies. In addition to these factors, strategic management also looks at a corporation’s short term and long term goals when deciding on making a comprehensive strategy. However, strategic management evolves due to the external factors which have a direct effect on a corporation’s ability to remain productive. This evolution is quite necessary because when it is completed, a corporation is able to act from an innovative stand point and not from a reactive position. 
Introduction  Strategic management entails formulating and implementing major objectives and schemes which are typically done by a corporation’s administrators. The process is carried out in consideration of the outcome of organizational assessments which are conducted on the external and internal atmosphere which the organization operates in. Strategic management is a continuous procedure done to combine the power of an organization’s efficient areas into a focused effort aimed at achieving greater performance. Furthermore, strategic management is not to be mistaken with strategic planning since strategic management entails knowing the steps the organization needs to take to implement its plan and attain a competitive advantage within an industry.  However, based on the external and internal factors which directly affect an organization, strategic management often goes through a process of evolution. The objective of this essay is to discuss how strategic management typically evolves in a corporation.  Basic Financial Planning Strategic management evolves due to external factors which make a corporation’s industry more complicated. Complexities can arise due to increased competition, changing trends, improving or worsening economic conditions and laws and regulations can also cause the need for evolved strategic management (Eden & Ackermann, 2013). However, strategic management initially evolves from basic financial planning. Financial planning entails making strategic decisions regarding maximizing opportunities to make as much profit as possible while remaining competitive within an industry (Freeman, 2010). Furthermore, competent financial planning gives a corporation more opportunities to take strategical steps particularly in expansion or diversifying. Corporations which are in this initial phase tend to place a lot of emphasis on preparing and achieving annual budgets. The annual budgets are also coupled with financial targets where organizational costs and revenues are monitored carefully. Basic financial planning emphasizes short term goals since the key focus is placed on the functional features of a corporation (Freeman, 2010).  Since in the introduction of modern corporations like DuPoint and ...