The role of strategic management in modern organizations

ანოტაცია

Strategic management is the cornerstone of success in modern organizations. Effective implementation of strategic management, the formation of an organizational vision, continuous analysis and adaptation to changes in the external environment help companies not only solve today's problems but also establish a sustainable position in the future. Strategic management is the key to achieving long-term success for an organization. It encompasses environmental analysis, goal setting, strategy development, and implementation. This article explores the fundamental concepts of strategic management and its significance in the contemporary business environment.

This paper describes the strategic management process, which involves analyzing the internal and external environment, utilizing SWOT analysis, setting goals, and developing strategies. The paper also emphasizes the importance of strategic management in creating a competitive advantage for the organization and ensuring its sustainability. The article also discusses the challenges of strategic management, such as globalization, technological advancements, and sustainability requirements. Moreover, it emphasizes that strategic management is a continuous process that requires adaptation to a changing environment.

The paper also argues that strategic management is a critical component of success in modern organizations, aimed at effectively utilizing organizational resources and achieving long-term goals in a competitive environment. In today's context, strategic management is not merely about creating a long-term plan but also about continuously analyzing and adapting it to the prevailing internal and external conditions.

The author discusses the key elements of strategic management and notes that strategic analysis is one of the main stages in the process of strategy formulation. This stage involves analyzing both the internal and external environment of the organization. It is important for the organization to identify current and future trends, changes in the market, technology, customer demands, and legislation. SWOT analysis (strengths, weaknesses, opportunities, and threats) is one of the most widely used tools in this process.

It is mentioned that SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is one of the most widely used and effective tools used during strategic analysis. This analysis helps the organization to:

• Strengths – Identify and realize its internal strengths, such as technological advantages, resources, experience, skills, or a good reputation.
• Weaknesses – Recognize the organization's internal weaknesses, such as insufficient resources, procedural chaos, or lack of adequate experience.
• Opportunities – Analyze external opportunities in the environment, such as market growth, the adoption of new technologies, or regulatory changes that may benefit the organization.
• Threats – Pay attention to external threats, such as increased competition, economic recession, or new legislation that could impact the organization’s operations.

The study also delves into the various stages of strategy formulation, including the development of the strategy itself. It emphasizes that during this phase, the organization defines its primary objectives, directions, and aspirations. This may encompass expansion strategies, introducing new products or services, or diversifying operations. The strategy outlines the activities that enable the organization to compete and solidify its position in the market.

Furthermore, the study analyzes that strategy implementation is more than just a plan; it requires concrete actions. This process involves allocating resources, making decisions, and achieving specific objectives. For successful implementation, it is essential that all members are well-informed and that continuous monitoring is in place.

The article also delves into the challenges faced by strategic management, such as globalization, technological advancements, and sustainability requirements. Moreover, it emphasizes that strategic management is an ongoing process that necessitates adaptation to a dynamic environment. The significance of strategic management in creating a competitive advantage and ensuring the organization's sustainability is underscored.