STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

Strategic management is a management that relies on human capital as the basis for the organization, directs production activities to customers requests quickly responds and provides timely changes in the organization to meet the call from the environment and help achieve competitive advantage, all of which enables the organization to survive in the long term, while achieving their goals. It's an exciting process that allows an organization to be proactive rather than reactive in the formulation of its future.

It is the formulation, implementation and evaluation of actions that allow an organization to achieve its objectives. The formulation of strategies includes identifying the strengths and weaknesses within an organization, the identification of external threats and opportunities of a firm, the establishment of missions in the industry, setting objectives, developing alternative strategies, analysis of alternatives and deciding which to choose. The implementation of strategies requires the firm to set goals, devise policies, motivate employees and allocate resources so that formulated strategies can be implemented successfully. The evaluation of strategies verifies the results of the implementation and formulation.

Discussion

Strategic management is vital in large companies, but what is its importance in small companies? The strategic management process applies equally to both large and small companies. From the moment of conception, every organization has a strategy, although she has only source of daily operations (Philip, James, 2003, 11).

Other problems that often bring to apply the concepts of strategic management to small industries are: lack of sufficient capital to exploit environmental opportunities and a cognitive framework "everyday". Recent research has drawn the conclusion that:

The procedure of strategic management in petite firms is more casual than large firms.

miniature businesses do strategic planning outperforms those that do not.

Benefits of strategic management:

Allows an organization to be able to influence their environment, rather than reacting to it, thereby exerting some control over their destiny.

Strategic management concepts provide an objective basis for resource allocation and reduction of internal conflicts that arise when subjectivity is only the basis for important decisions.

Enable an organization to take advantage of key opportunities in the environment, minimize the impact of external threats, internal strengths and use to overcome internal threats.

The organizations that carry out strategic management are more profitable and successful than those who do not use.

Prevent declines in revenues and profits and even bankruptcies.

The strategic management includes a greater awareness of environmental threats, greater understanding of the capabilities of a company in terms of preventing problems, because they emphasize the interaction between industry managers at all levels.

They order and discipline throughout the company. It is the beginning of an efficient and effective management.

Key terms for the study of strategic management

Strategists

They are key individuals responsible for the triumph or breakdown of a company or industry. They have different titles such as executives, managers, presidents, owners, Dean, employers, etc. Because they are human beings strategists differ in their attitudes, values, sense of ethics, concern for profitability, short-term concerns against long-term ...