The Basics of Strategic Management
Strategic management is when a company or an organization develops a business plan that embraces their goals and purposes. This type of management is in a continuous change as the plans and goals of the company grow and its purpose is to help the company adapt to the external trends that dictate the direction in which the business should move. There are some key concepts that describe and develop
Setting a goal
The main idea of the strategic management is to create a goal, a purpose, values and objectives designed to increase the profitability and the success of the company. The purpose of creating a strategy is to help the manager discover the proper opportunities and to make the strategic decisions that will yield the expected results. Through setting a goal, the organization plans how to reach that goal by competing with other businesses.
Analyzing Strategy Formation
The analysis of the organization and finding the strong and weak spots is another part of the strategic management. Besides analyzing the internal factors, the organization must also analyze the external factors such as the competition and the emerging technology so that they can create a strategy designed to turn the weak spots into strong ones. Analyzing all the factors can also help create a strategy that will ease the adaptation of the business to the changing technology and market.
Forming a strategy
By forming a business strategy, the company develops and puts in practice various actions meant to help them achieve their goals. Strategy formation is a concept that uses the information gathered by the manager in order to make the right decision in solving the key issues of the company. Forming a strategy also helps the organization find the best ways to maximize the profit and maintain a competitive advantage.
After the strategy has been created, it’s time to be put in practice in order to meet the goals and expectations of the company. The implementation requires gathering the necessary information and resources that will bring the strategy to life. This implies creating a series of programs and policies designed to meet the goals in every field in the company, from financial to human resources to operational. In order to make a strategy works, it’s important that the entire personnel in every field of the company will communicate and cooperate.
Once the strategy has been implemented, it needs to be monitored so that the managers will make sure it yields the anticipated results. Strategy monitoring helps determine which parts of the business plan need to be remeasured and using which methods so that the final results will match the anticipated results. By monitoring the strategy, the organization manages to understand how and when they need to adapt their business to the changing trends.
Tags: business plan, business strategy, management, strategic management