Unit 1: Introduction to Strategic Management

Strategic management: concept, characteristics, process, and importance;

Strategic decision-making: concept, and characteristics;

Strategic direction: vision, mission, corporate values, and objectives;

Ethics, social responsibility and governance in strategic management;

Nature of strategic management in Nepalese hospitality sector.

Short Important Questions

1. Define strategic management. (1 Mark)
2. List out the types of objectives. (1 Mark)
3. List out any four characteristics of strategic management. (1 Mark)
4. Sketch the process of strategic management. (1 mark)

Long Important Questions

1. What is strategic management? Explain about the characteristics of strategic management. (5 Marks)
2. What is mission? Differentiate between vision and mission statement with suitable examples. (5 Marks)
3. “Strategic management is a critical element for the success of any enterprise in the present days of globalized world”. Do you agree with this statement? Discuss about the process of strategic management. (10 Marks)
4. Justify the significance of strategic management. (5 Marks)

Concept of Strategic Management

The term Strategic Management is made up of two words: Strategy and Management.

Meaning of Strategy

A strategy is a carefully designed long-term plan or course of action that helps an organization to achieve its goals and gain an advantage over competitors. It provides direction for making important decisions and also guides the organization to respond with changes in its internal and external environment.

In simple terms, strategy is the roadmap that guides an organization towards its long-term goals.

Meaning of Management

Management is the process of planning, organizing, leading, and controlling an organization’s resources—such as people, finance, materials, and technology—to achieve predetermined objectives efficiently and effectively.

In simple terms, management is the process of getting work done through people and available resources to accomplish organizational goals.

When these two concepts are combined, strategic management refers to the process of planning and managing an organization’s long-term direction by making and implementing strategies that help to achieve the organizational mission and objectives.

Simple Definition: Strategic management is the process of planning, implementing, and evaluating strategies to achieve an organization’s long-term goals. Detailed Definition: Strategic management is a continuous process through which an organization analyzes its internal and external environment, formulates strategies, implements them effectively, and evaluates their performance to achieve their sustainable long-term objectives and gain competitive advantage.

Definitions by Scholars

1. According to Lloyd L. Byars, “Strategic management is concerned with making decisions about an organization’s future direction and implementing those decisions.”