Strategic Management is exciting and challenging. It makes fundamental decisions about the future direction of a firm, its purpose, its resources and how it interacts with the environment in which it operates. Every aspect of the organization plays a role in strategy – its people , its finances, its production methods, its customers and so on.
Srategic Management can be described as the identification of the purpose of the organization and the plans and actions to achieve that purpose. It is that set of managerial decisions and actions that determine the long-term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organizational goals. Strategic management does not replace the traditional management activities such as planning, organizing, leading or controlling. Rather, it integrates them into a broader context taking into account the external environment and internal capabilities and the organization's overall purpose and direction. Thus, strategic management involves those management processes in organizations through which future impact of change is determined and current decisions are taken to reach a desired future. In short, strategic management in about envisioning the future and realizing its.
- Establish Direction: Early defines the aim of the organization and establishes realistic goals and objectives according to the mission which may be clearly communicated to constituents. Provide a base from which progress is measured, employees compensated and bounds tableside for effective higher cognitive process.
- Business Decision: Distinguish between a decent idea and an excellent idea? Without a transparent vision of what you wish to attain, and mission or purpose for doing it, everything looks as if a decent idea. What project does one invest in? How must you and your staff invest your time? Having clarity about what you wish to try and do, who you would like and the way to urge there'll focus limited financial and folks resources.
- Future Oriented: the globe market and industries are changing faster than ever and people companies who don't have a solid foundation and have relied on luck or opportunity presumably won't be around for the long run. Data reflects that one out of each three companies at the highest of their industry won't make be there in five years. Focus is powerful. Scientists focus light so intently that it becomes a laser which is employed for surgery or ready to cut across glass and metal.
- Increased profitability and market share: Focused planning and strategic thinking will uncover the customer segments, market conditions, and merchandise and repair offerings that are within the best interest of your firm. An intentful and targeted approach to markets and opportunities which guide your sales and marketing efforts, distribution and other business decisions which ultimately mean more profit to the underside line and a stronger market position.
- Unique differentiation: Avoid “competitive convergence” Companies have gotten so wont to observing their competitors and their best practices then trying to duplicate them that it becomes harder to inform the businesses apart. all of them start to seem the identical with less distinction in unique value. Strategy means having a novel differentiation that sets you aside from your competitor.
- Make future happen don’t let it happen to you: it's the difference between being proactive or reactive. get on the defensive or the offensive. Be a victim of circumstances or be victorious within the fight. Not every situation is foreseen but you'll be able to make decisions and react to changing market conditions with the tip in mind.
