Strategic management is planning at a company's highest level.
Strategic planning involves a company's planning for short- and long-term success at its highest level, involving chief executive officers and other leaders. Strategic management theory is the thought process behind the strategic management plan, and either fits into the category of efficiency or effectiveness.
Core Objectives
Defining a business' objectives, achieve them, and what resources to allocate are the central ideas involved in key questions a strategic plan must answer, All Business states.
Efficency theory
This strategic management theory centers on optimizing processes and eliminating waste, Experience Festival states. It's about doing things right the first time.
Effectiveness Theory
This theory involves making sure a strategic plan will achieve the desired results. According to Experience Festival, both efficiency theory and effectiveness theory should be elements of a good strategic management plan.
Tags: strategic management, Experience Festival, highest level, management plan, management theory