Question

Define strategic management and explain the scope of SM. What are the essential differences between Strategic and Operation Management. Strategy relies on understanding internal and external contexts, explain why this is necessary.

Answer 1

Strategic Management: Strategic Management is an action that influences a long-term performance. It focuses on exploring external opportunities. It is a continuous process monitoring, controlling, developing, planning, analyzing and organizing. Strategic management strives to implement all the creative ideas and complete their tasks to achieve the desired goals. Generally, strategic management decisions will affect the company performance. This is used in both small and large organizations.

Example: A company name “X” take up a project of printing 1000 books in two days and to achieve this target, certain preparations such as planning, organizing, controlling etc., will take place. A process plan will be discussed and it will be executed with a good team work which apparently leads in achieving the target of printing 1000 books in 2 days.

Scope of Strategic Management:

· Helps to enlarge their productivity.

· It simplifies the difficulties.

· Prepares an organization to deal with threats.

· Anchors the utilization of strengths.

· It shrinks the concept of weakness.

· It focuses on raising opportunities.

Operations Management: Operations management effortlessly manages the daily activities of an organization. It is compulsory in every organization to maintain a good operations management team. It plays a vital role because it centres the design, goods, services, supply chain, etc. It believes in flexibility.

Example: If a fashion industry is launching its new summer collections then some operations management decisions involve, such as where do we order our fabric, hiring new people or will work old team, do we need any samples, any equipments are needed for designs etc.,

Differences between strategic and operations management:

· Both focuses on developing the strengths of the organization and eradicate weakness.

· They try to give simple solutions for complex questions.

· Strategic management focuses on planning, organizing, directing and etc., whereas operations management focuses on goods, services, designs etc.,

· Operations management allows taking the risk, whereas strategic management alerts the company in the concept of threats.

· Strategic and operations management helps to shape the future of the business.

· Managers are creative in operations management.

· Managers are more disciplined in strategic management.

Strategy relies on understanding internal and external contents are as follows:

· By sorting the employee challenges it focuses on the internal environment.

· Setting goals is the key.

· If perfect strategies are followed, then we can give the best competition to our competitors.

· Should always centre target markets.

· Profits are increased.

· Good communication skills are encouraged.