Strategic management is a plan for an organization to do business, compete successfully and to attract and satisfy its customers.

1. CURRENT STRATEGIC
MANAGEMENT ISSUES
Term Paper

2. Current Strategic Management Issues:
Strategic management is a set of actions which is implemented by an organization to achieve its
goals. It completely changes the mindset of an organization about how well they perform.
Organizations using strategic management to complete their task are tend to have higher
performance levels as compared to others which is very useful for the company and the managers.
A company faces changing situations continually, to cope up with the changes they use strategic
plans to decide what actions to take and how to overcome the problems. To handle all the
employees at once is very difficult, organizations use strategic management to focus on their
employees and to encourage them towards success. Strategic management is basically to take
actions for the development of an organization in behalf of their owners by keeping the budget and
resources in mind. It helps in the allocation of resources and how to utilize them to their full
potential. By keeping a good view of environment in mind, managers develop strategic plans to
motivate employees to implement them. Formulation and implementation are a big part of strategic
management. Strategic management requires the related ideas of tactical planning and tactical
thinking. Strategic planning is analytical in characteristics and identifies formalized procedures to
create the info and analyses used as inputs for proper thinking, which synthesizes the info leading
to the strategy.
It is an important task which an organization do to be stable in the market and fight its competitors.
Strategic management is a plan for an organization to do business, compete successfully and to
attract and satisfy its customers. Strategic management is important in every type of business
organization, whether it’s profitable or non-profitable. Today, many organizations face issues
regarding strategic management. The vision, value statement and trust which they emphasize
during formulation of strategy does not carry on. They forget to implement it and that is why their
organization becomes unstable. The sunk cost effect is a huge problem in an organization. They
keep investing money on the things which clearly aren’t working or giving any profit. The
uncertainty is what lead an organization to failure. The other issue which an organization face is
Volatility. It effects the changes in the situation in an organization. There are two types of
volatility. Firm level volatility includes the changes which happens in company’s things which is
main core of generating revenue like changes in price of raw materials. Aggregate volatility refers
to changes in large scale like GDP growth. Another issue a company face in strategic management

3. is complexity. When employees face complex situations like changes in departments or changes
in leadership. New machines are introduced in the production of goods and employees are not that
aware of new technologies. Overseas services issues also contradict in strategic planning.
Economic forecasters are using very multiplex models to determine environmental situations.
Organization today lack flexibility. They expect their investors and customers to spend money.
They don’t take risk. They are happy to be what they are. They don’t strive towards success. They
have stopped challenging themselves. The global competition has risen rapidly. To create work
force diversity in their environment, to be more flexible is what they need if they want to survive
in the market.
How can we solve these issues regarding strategic management? We can formulate different types
of strategies, corporate level strategy, functional level strategy, business level strategy, to
overcome the problems.
Corporate level strategy can be involved with the proper decisions an enterprise makes that
influence the whole firm. Corporate and business level strategy specifies activities a firm will take
to get a competitive gain by selecting and owning a band of different businesses contending in
several product markets. It determines the worthiness by level to that your businesses in the
collection are well worth more under the management of the business they would be under any
ownership.
Functional level strategy advocates for the business enterprise to see its management decisions as
specific to an operating section of the business, such as marketing, recruiting, financing,
information management and public relations. The features of this are that employees and
resources can be designated to the duties that best suit their skills and hobbies. Business level
strategy aspires to see people and resources as a finish in themselves, not a means to a finish.
Business-level strategy can be involved with a firm's position within an industry, in accordance
with rivals and the five makes of competition. We need leaders which cares about a company,
managers which can make a strong strategic plan to achieve future goals and employees who are
dedicated to their work.

4. References
MANAGEMENT by Stephen P. Robbins/Mary Coulter/Neharika Vohra
www.alliedacademics.org
www.slideshare.net
Student paper of Intercollege
Student paper of Ottawa University