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Strategic management is a fundamental philosophy that goes beyond mere rules and regulations in a book; it is the cornerstone of a successful business. It is an approach that can determine the feasibility of a business venture and, once implemented, serves as the driving force behind consistent profit gains and the achievement of primary company goals (Clayton, 2014). The strategic management process acts as a guiding light for all members of an organization, ensuring that they are aligned with the company's focus and plan.
It is the blueprint that guarantees a company's longevity and resilience, overcoming any weaknesses it may face.
According to Wheelan and Hunger (2010), strategic management encompasses a series of managerial decisions and actions that shape a corporation's long-term performance. It involves environmental scanning, strategy formulation, implementation, and evaluation and control. In essence, strategic management is indispensable for all companies.
Every company begins with a vision, a goal to strive towards. Environmental scanning is crucial in gathering information that aligns with the company's vision.
It involves analyzing the business needs, evaluating competitors in the market, and assessing both internal and external factors.
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Strengths and weaknesses are carefully scrutinized to gauge the company's position and safeguard against vulnerabilities.
Strategy Formulation is the process of constructing the overall plan of a company. It entails determining the mission, setting objectives to advance towards the mission, devising strategies to achieve these objectives, and establishing policies that influence decision-making (Wheelan and Hunger, 2010). Once the environmental scanning is complete, this information serves as the foundation for formulating the strategy.
Priorities are established, and available resources are allocated to implement the strategy effectively.
Strategy implementation involves putting the plan into action.
This phase of the strategic management process includes developing programs, budgets, and procedures. Programs encompass any activities necessary to accomplish short-term or long-term goals that contribute to the ultimate objective. Budgets outline the costs associated with these programs, while procedures detail the step-by-step approach the company follows in its operations.
Evaluation and control are vital aspects of monitoring the company's progress towards its vision. The U.S. Army, a mission-oriented strategic organization, exemplifies the importance of strategic management. The Army employs Environmental Scanning to stay informed about external opportunities and threats. It assesses potential risks and environmental factors that could impact mission success. By evaluating its strengths and weaknesses, the Army ensures its effectiveness. Strategy formulation is critical for positioning the Army strategically and aligning mission, objectives, strategies, and policies for execution. Strategy implementation involves executing the Army's plan, utilizing various programs to ensure mission success. Budgeting is a key aspect of the Army's operations, and procedures are rigorously enforced. The Army conducts thorough evaluations through After Action Reviews (AARs) to assess mission outcomes.
For any company to succeed, strategic management procedures are indispensable. While having a vision is essential, it is equally crucial to translate that vision into actionable plans. New businesses often begin with a long-term vision, but as they grow and face operational challenges, there is a risk of losing sight of the vision. Strategic planning helps companies stay focused on their vision and proactively address any obstacles that may hinder its realization.
In conclusion, strategic management is not just a theoretical concept; it is the lifeblood of any successful organization. By following a strategic management process that encompasses environmental scanning, strategy formulation, implementation, and evaluation and control, companies can navigate challenges, capitalize on opportunities, and achieve sustainable growth. It is imperative for all businesses, regardless of size or industry, to embrace strategic management as a core element of their operations to thrive in today's competitive landscape.
The Essence of Strategic Management: A Blueprint for Success. (2016, Mar 10). Retrieved from https://studymoose.com/strategic-management-components-essay
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