Effect of Strategic Management Practices on Performance of pharmaceutical companies in India
Abstract
Strategic management helps the management to select the best feasible strategy alternative. A comprehensive analysis of a company's interior and exterior setting enables one to recognize the strengths and weak points and hazards and opportunities of business. Strategic management allows assessing a business's competitive advantage and outlines objectives and ways to meet all present and future competitors. In India, pharmaceutical companies have been reporting a declining performance on the sales revenue for the past three years since 2018. This formed the motive of the study to examine the effect of strategic management practices on the performance of pharmaceutical companies in India. The study was literature-based. The inferences were based on the research findings from the previous studies. The findings of the study established that strategic management practices are positively and significantly related to performance. The study discovered that strategic management is essential in performance. Strategic management provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the strategies. Ultimately, strategic management is for organizations to gain a competitive edge over their competitors. The study concluded that strategic management is the ongoing planning, monitoring, analysis and assessment of all necessities an organization needs to meet its goals and objectives. Changes in business environments will require organizations to assess their strategies for success constantly. The research concluded that many strategic management methods have to do with identifying and describing the processes that managers can use to achieve superior performance and a competitive advantage for their business. The study recommended that strategic supervisors establish promising strategies during a severe economic crisis, organizational cycles, severe financial decline, or business malfunction. The managers should develop a plan that will assist businesses in both the short term and long term.
Keywords: Strategic Management Practices, Performance, pharmaceutical companies, India
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