In the context of global crisis phenomena, the problem of the formation of sustainable competitiveness has acquired particular relevance due to the increased variability of the external business environment. Insufficient scientific and methodological development of many aspects of the formation and implementation of competitive advantages of enterprises prompts the interosculation of different disciplines to ensure a comprehensive understanding of today’s business industry. The problem of strategic management of an enterprise is also relevant from a practical point of view due to the need of developing modern methods of assessing competitiveness and mechanisms for creating competitive strategies. Strategic planning is one of the key management functions, which defines the main goals of the organization and how to achieve them. A strategic plan written out for several years ahead is the basis for making all management decisions, as it describes the model of the company’s future. According to David (2011), “A strategic plan results from tough managerial choices among numerous good alternatives, and it signals a commitment to specific markets, policies, procedures, and operations” (p. 6). A global vision of the prospects for its development in a competitive market is necessary for any company that plans to become profitable.
Today, it is necessary to critically comprehend the accumulated problems to find ways to solve them. This applies to all elements of management, but primarily the strategic aspects of managing business entities. There are sufficient grounds to assert that it is this direction of management activity that is the “weak link in the entire management chain” and often nullifies the positive effect achieved in other areas. This explains the importance of studying the discipline “Strategic Management”. It allows the students to understand the principles of operating the company at all stages, bringing together knowledge from all areas.
First and foremost, strategic management helps develop skills in business analysis. This is because at the forefront of strategic planning is the analysis of both the internal capabilities of the organization and external competitive forces. Moreover, by studying strategic marketing, students learn to search for ways to use external opportunities, taking into account the specifics of the organization. For successful development, the organization must constantly identify the existing and potential opportunities concerning the most effective use of its internal resources – intellectual, informational, labor, material, financial, and other. Strategic marketing offers various opportunities to collaborate and create innovations through interactions of different disciplines. The complexity and turbulence of modern markets, as well as an increase in the speed of obtaining information and new knowledge, determine the need to develop new methods and tools for management activities. Thus, it can be said that the purpose of studying strategic marketing is to learn to improve the response of the enterprise to the dynamics of the market and the behavior of competitors.
Strategic marketing is also important when it comes to accounting, as it applies the knowledge obtained from financial analysis to the situation on the market. Obtaining well-defined and clear information from financial facts and figures has always remained the most demanding process in the business industry in terms of financial analysis and its elements. Strategic management helps put this information into practice, allowing the students to understand how finances work. Financial analysis is used to study economic models, determine financial policies, draw up long-term plans for various types of business activities, and analyze projects or groups for investments. Each of these activities is part of strategic management and would be incomplete if the student, even an accounting major, does not understand how the strategy works. Thus, it is of utmost importance to study strategic management and accounting together, as it gives the most complete overview of the operational principles of any enterprise.
This course focused on teaching strategic management not only as an independent discipline but concerning another subject that is also important for any business major. By developing a comprehensive understanding of various aspects of strategic management, the course allowed the students to recognize the ties that bind it to other business subjects. For example, David (2011) stated that “strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success” (p. 6). The strategic management course has also taught every student that the management process must be proactive rather than reactive. In a proactive strategy, managers try to influence events in the external environment, rather than simply react to them, which is a crucial skill for managing an enterprise in a globalized world.
Budgeting, long-term planning, strategic planning, and strategic management were not put as not opposed to each other. The course made it clear that strategic planning, which replaced long-term planning, fully integrated all its achievements, and then itself became an integral part of strategic management. Moreover, it has also taught me that it is not possible to always predict how the environment will change. Rather, the students need to learn how to establish enterprises that will be able to operate effectively in unstable external conditions.
It is clear that the course “Strategic management” is one of the most useful and important disciplines for any business major. It brings together knowledge from accounting, planning, management, and analysis, developing the skill of “helicopter thinking” – the ability to view the situation from all angles. By studying strategic management, students learn to apply their practical skills in different areas of operating a business and recognize the connections between them.
References
David, F. R. (2011). Strategic management: Concepts and classes. Prentice Hall.