Effect Of Strategic Management On Organizational Performance

1.0 INTRODUCTION
1.1 Background Information to the Study
It is now universally accepted that strategic thinking is necessary and that management practices have a favorable impact on an organization’s performance. Researchers are interested in studying strategic management since it is a crucial component of management. This is explained by the fact that this part of management discipline is applied everywhere. (Onyekwelu, 2020).

Strategic management, according to Abulkdir (as stated in Ibrahim & Musa, 2020), is the identification and description of the strategies that managers might employ in order to improve performance and provide their firm a competitive advantage. According to Ahmed and Kising’u (2019), the strategic management process entails formulating a strategy’s mission, establishing objectives, analyzing the current circumstances, producing a plan formulation, putting the strategy into practice, and evaluating the process.

Various authors have defined environmental scanning as a strategic management technique. (Environmental scanning, according to Ibrahim and Musa (2020), is the process of gathering, examining, and delivering information for tactical objectives.

The creation of long-term plans for the efficient management of environmental opportunities and dangers in light of business strengths and weaknesses is known as strategy formation. It include defining the corporate mission, outlining realistic goals, creating strategies, and establishing policy guidelines (Adegboyega, Oluwole, Oluyemi, Raheem & Akintayo, 2021).           Organization of the company’s resources and employee inspiration to attain goals are essential components of strategic implementation. The environment in which many businesses operate is always changing (Adegboyega, Oluwole, Oluyemi, Raheem & Akintayo, 2021). Implementing a strategy, according to Anyieni (as referenced in Mohammed & Mohammed, 2021), is the process of providing resources to support the selected strategies. The process is made up of several management tasks that are required to implement the strategy, strategic control that can track the development, and final organizational goals.

The last step in the strategy management process is called strategy evaluation and control (Ibrahim & Musa, 2020). Its objectives include revealing any obstacles to plan implementation and/or recognizing opportunities (Adegboyega et al, 2021).

The idea that an organization is the voluntary association of production assets, including human, physical, and capital resources, for the goal of achieving a shared objective is the foundation of the concept of organizational performance (Mohamed & Mohamed, 2021). Organizational performance, according to Richard (as mentioned in Onyekwelu, 2020), includes three distinct areas of corporate outcomes: financial performance (profits, return on assets, return on investment, etc.), market performance, and operational performance (sales, shareholder, return and economic value added).