What is Strategic Management and Operational Management-Frequently Asked Questions

Strategic Management and Operational Management

The underlying nature of strategic management is to forecast future events and plot a course toward the achievement of long-term goals. To optimize the organization’s success, analyze market trends, internal competencies, and external rivals. Sound operational management is an essential component of any successful business that tries to maximize both productivity and efficiency. Consistent operations necessitate the deployment of procedures to improve processes, manage resources, and track personnel development. The strategic management and operational management will be covered in-depth in this article, along with some examples for your convenience.

Optimal alignment of strategy and operational management inside a corporation results in improved overall entity performance. An organization requires both strategic and operational management to achieve its goals. While the former sets the course for the future, the latter ensures that plans are carried out as intended.

Strategic Management and Operational Management

Strategic management is the deliberate synchronization of an organization’s purpose, vision, and values with its overall long-term goals. Managing problems and uncertainty effectively requires thorough assessment, forecasting, and decision-making throughout the process. The emphasis of operational management on job completion is one means of ensuring that a top-down plan produces real outcomes. It is vital to efficiently manage time, money, and other resources. Before you think about money, investing, business, or managing it, consider the strategic management and operational management.

Managing the Supply Chain

Supply chain management is the organization of the flow of products and services. Apple’s supply chain management ensures dependable product delivery, which contributes to the company’s flawless image among customers.

Management of Operations

The discipline of operational management is concerned with efficiently running an organization’s day-to-day activities in order to achieve its strategic goals. To maximize productivity and reduce waste, resources and procedures must be planned, organized, and controlled. Process design, resource allocation, quality control, and performance monitoring are important duties. So, a business with effective operational management meets client needs, runs smoothly, and adapts to changing environments. Increasing overall success, cost-effectiveness, and organizational efficiency are contingent upon it.

Allocation of Resources

It is critical to use every available resource. Hospitals may provide economical yet superior patient care by successfully managing resources such as workers and medical supplies.

Vision and Mission Formulation

In addition, the assertions made in an organization’s vision and mission statements serve as the cornerstone of its comprehensive strategy guidance. Tesla, for example, aims to expedite the global shift to more environmentally sustainable energy sources through improvements in electric vehicle technology and renewable energy solutions.

Technology and Innovation Policy

Innovation-based strategies promote the continuous improvement and expansion of technology capabilities. Also, Netflix’s journey from a DVD rental service to a global streaming platform exemplifies a shift in strategy centered on technology.

Keeping an Eye on Results

Monitoring key performance indicators (KPIs) on a regular basis is an efficient way to measure the effectiveness of various business operations. FedEx ensures on-time delivery of shipments by leveraging real-time tracking technologies, enhancing customer satisfaction.

Controlling Stocks

Companies can avoid both overstocking and product depletion by successfully managing their inventory. McDonald’s operates efficiently thanks to its real-time inventory management system, which ensures rapid replacement of materials when a shortage occurs.

Long-Term Planning Art

Strategic management relies on SMART objectives: specific, measurable, achievable, relevant, and time-bound. Another, Google’s mission exemplifies this approach: “structure global information for universal accessibility.”

M&A Transaction

M&A transactions are strategic activities taken in order to enter new markets or acquire specialized knowledge. Through its acquisition of Instagram, Facebook got a foothold in the fast developing social media sector and was able to recruit new members.

Organizing Resources

Production capacity planning is a component of operational management. To optimize the distribution of workers and planes, the airline industry applies complex demand and supply models.

Quality Assurance

It is critical to ensure the quality of the product or service being supplied. General Electric is not the only company that uses the Six Sigma technique to increase output quality by reducing mistakes and variances.

Competitive Edge Strategies

A company can obtain a competitive advantage over its competitors by differentiating itself from the market’s offerings. Besides, Amazon’s success in the e-commerce market can be attributed in part to its dedication to good supply chain management and exceptional customer service.

The Art of Diversification

Strategic management is responsible for deciding whether or not to enter new industries or markets. Unilever’s significant achievements are demonstrated by the company’s push into novel industries such as food, household supplies, and personal care items.

Optimization of Procedures

Operational management tries to maximize output by increasing efficiency. Toyota’s “Lean” production model aims to reduce waste while increasing value created during the manufacturing process.

Handling a Crisis

Managing operational issues requires correctly responding to circumstances that require quick attention. Johnson & Johnson’s reaction to tampering with their Tylenol medicines demonstrates how important competent crisis management is for safeguarding the public and preserving a company’s brand.

SWOT Analysis Usage

A SWOT analysis, which stands for “Strengths, Weaknesses, Opportunities, and Threats,” can help a business discover areas of strength, prospective areas for development, and obstacles to avoid. Moreover, Apple’s strategic strategy is based on the organization’s prowess in invention and design, as revealed by a SWOT analysis.


Difference between Strategic and Operational Management?

Operational management is concerned with ensuring that processes are efficient and that products and services are delivered, whereas strategic management is concerned with developing long-term goals and plans to help a business accomplish its vision.

Example of a Successful Company’s Competitive Advantage?

Starbucks maintains its market leadership by implementing a competitive advantage plan centered on quality coffee and great customer service.

What is a Swot Analysis in Strategic Management?

A SWOT analysis evaluates an organization’s opportunities, threats, advantages, and disadvantages. It is a useful tool for detecting areas of concern, capitalizing on good circumstances, and avoiding potential risks.


It is impossible to overestimate the importance of operational management in achieving cost efficiency and cost reduction. This technique includes identifying cost-cutting opportunities, streamlining workflow, and allocating resources wisely. Decisions made at the strategic management level have an impact on the operational management level. Strategic decisions have an impact on resource allocation, procedure design, and organizational structure. Summing up, this topic related to strategic management and operational management is crucial for the success of any organization. To explore difference between policy and strategy issue further, read this informative article.

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