Strategic management is the management of
an organization’s resources to achieve its goals and objectives. Strategic
management involves setting objectives, analyzing the competitive environment,
analyzing the internal organization, evaluating strategies, and ensuring that
management rolls out the strategies across the organization.
WHAT IS STRATEGIC MANAGEMENT
Strategic management is divided into
several schools of thought. A prescriptive approach to strategic management
outlines how strategies should be developed, while a descriptive approach
focuses on how strategies should be put into practice. These schools differ on
whether strategies are developed through an analytic process, in which all
threats and opportunities are accounted for, or are more like general guiding
principles to be applied.
DEVELOPMENT OF STRATEGIES
Business culture, the skills and
competencies of employees, and organizational structure are all important
factors that influence how an organization can achieve its stated objectives.
Inflexible companies may find it difficult to succeed in a changing business
environment. Creating a barrier between the development of strategies and their
implementation can make it difficult for managers to determine whether
objectives have been efficiently met.
RESPONSIBILITIES OF UPPER MANAGEMENT OF AN ORGINIZATION
While an organization’s upper management is ultimately responsible for its strategy, the strategies themselves are often sparked by actions and ideas from lower-level managers and employees. An organization may have several employees devoted to strategy rather than relying solely on the chief executive officer (CEO) for guidance.
INWARD AND OUTWARD PERSPECTIVE
Because of this reality, organizational
leaders focus on learning from past strategies and examining the environment at
large. The collective knowledge is then used to develop future strategies and
to guide the behavior of employees to ensure that the entire organization is
moving forward. For these reasons, effective strategic management requires both
an inward and outward perspective.
STRATEGIES MANAGEMENT AND ITS GOALS
Strategic management is the process of
setting goals, procedures, and objectives in order to make a company or
organization more competitive. Typically, strategic management looks at
effectively deploying staff and resources to achieve these goals. Often,
strategic management includes strategy evaluation, internal organization
analysis, and strategy execution throughout the company.
DESCRIPTIVE APPROACH
In business, strategic management is
important because it allows a company to analyze areas for operational
improvement. In many cases, they can follow either an analytical process, which
identifies potential threats and opportunities, or simply follow general
guidelines. Given the structure of the organization, a company may choose to
follow either a prescriptive or descriptive approach to strategic management.
Under a prescriptive model, strategies are outlined for development and
execution. By contrast, a descriptive approach describes how a company can
develop these strategies.
UNDERSTANING OF GLOBAL TRENDS
Developing a strategic vision requires an
understanding of global trends, the competitive landscape and stakeholder
expectations. Once a firm knows what its mission is, the right resources can be
allocated to achieve that plan. Through strategic decision-making and
commitment to strategic planning, organizations can strengthen their long-term
competitive position.
WORKPLACE MOTIVATION
Apart from financial gains, strategic management can also boost workplace motivation. Setting effective goals for employees and involving them in organizational objectives can improve overall performance. Studies show a dramatic increase in both employee and business performance when goals are aligned. Strategic Management Class Services is the best option for online strategic management class help. Strategic Management Class help is the great option to ask to take my strategic management class.
IMPROVED FINANCIAL PERFORMANCE
But it’s not enough to just craft and
execute a strategic management plan. Firms that continuously measure and review
the results of their strategic approach are more likely to achieve success and
see improved financial performance. Firms that continually assess whether they
are performing according to their corporate blueprint can respond to
fast-changing market forces. They can move the company along the strategic
course that has been charted for it.
