The evolution of approaches to defining and the modern understanding of the category «strategic management»

Zaiats Eduard
Postgraduate student of the Department of Banking, Odesa National Economic University, Odesa, Ukraine, E-mail:zaiats_eduard@ukr.net, ORCID ID: https://orcid.org/0009-0006-6110-8033

Cite this article:

Zaiats E. (2024) The evolution of approaches to defining and the modern understanding of the category «strategic management». Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Evoljucija pidhodiv do vyznachennja ta suchasne rozuminnja kategorii «strategichne upravlinnja»; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 11 (324), pp.31-39.

Abstract

The strategic management system, which encompasses strategy formulation and the management of its implementation, is a crucial element of a bank's effective operation and even a necessary condition for its survival. In recent years, strategic management in banks has become a growing focus of attention for researchers in the field of banking management and related disciplines. Ukrainian and international experts, leading consulting firms, as well as international organizations and regulators, acknowledge the importance of strategic management as a key component of long-term planning for the development of banks. Purpose of the study is to analyze the evolution of approaches to defining the category of "strategic management" and to shape a modern understanding of this concept, taking into account the historical context, the development of theoretical foundations, and contemporary challenges associated with changes in the global business environment. The main methods used in the work were the method of analysis and synthesis, comparison, deduction and induction, as well as the method of generalization. The research is aimed at systematizing knowledge regarding the transformation of the understanding of the concept of "strategic management" and identifying the main trends in its development. The article presents the key interpretations of the concept proposed by both domestic and foreign scholars, which allows for the identification of the key aspects of this category. The result of the research is the classification of scientists' views, which allowed for the identification of three main conceptual approaches to the studied concept: process-based, goal-oriented, and systems-based. The study highlights the main principles of strategic management, which should form the foundation for the effective implementation of strategy in real conditions and ensure the achievement of the organization's long-term goals. The findings of the study on the essence of the concept of "strategic management in a bank" confirm the appropriateness of considering it through a systemic approach. Strategic management in a bank should be interpreted as the implementation of a concept that integrates goal-oriented and process-oriented approaches to organizational activity. This approach enables the identification of long-term, medium-term, and short-term development goals, aligns them with the organization's available resources, and harmonizes them through the development and implementation of a system of strategies.

Keywords

strategy, strategic management, management process, approach.

JEL classification:G210; G300; G340; M100;DOI: https://doi.org/10.32680/2409-9260-2024-11-324-31-39

UD classification:336.72

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