Principles of strategic management

Strategic management is a system of handling, conducting and controlling of affairs of an institution (company, enterprise, firm) aimed at Grafting strategies and developing organization conforming with the ways of their implementation and execution. And as a result of a correct strategic management, the company always has competitive products, rational system of resource supply, organizational structure, information system and such controlling and conducting processes which provide company's high sensitivity to changes in external environment. Strategic management can be fulfilled as at the level of single manufacturing unit (plant) so as at the level of single company (firm) or group of companies (corporation). Strategic management process implies that chief executive officers and managerial staff support group can simulate situations, reveal necessary changes to implement, craft strategy of changes implementation and use reliable and trustworthy managerial methods and techniques. The Core of strategic management is the strategic planning.

Strategic planning supposes the existence of new functions of company's management. Planning and implementation of strategic initiatives became an activity of staff managers, strategy-makers. But the success of strategy implementation and execution will depend on line managers of different functions. It means that managers of all organisational levels normally have a hand in the process.