STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

A business strategy explains the plans of a business i.e. how is it planning to succeed in the market. This strategy is planned to make sure that the company is able to evaluate its position against the competitors in the industry. Business strategy helps a business in formulating strategies according to the goals and objectives of the company and helps to target the potential customers. When a company is evaluating its own position, it sees what are the success factors of the companies that are on top in the industry and tries to formulate strategies and will make it the market leader in the industry. It seeks how it can achieve competitive advanatage that will keep it ahead of other companies in the industry.

Background

Strategy is a plan set out by a company by effectively using the resources for marketing its products and for creating a competitive strategy. This strategy is used for making sure that the companies make their strategies to compete in the market with other companies. It makes sure that company uses both of its resources i.e. monetary, as well as, human resources to compete in the market. Strategies are helpful when a company is designing its marketing plan and it helps the company to take new actions that will benefit the company. It will also make sure that the plan that the company is making effective use of the strategy and is implementing it properly (Moyer, 2002, pp. 26). The strategic plans that the company plans should be implemented very carefully because a lot of companies fail while implementing the plans. The companies should make sure that they successfully implement the strategies.

Enabling Success

The strategic planning and management process is arguably the most significant function of arts organization boards and managers. This part presents a practical, structured, and streamlined process for enabling success geared to the time and resources available to most organizations of this type. That process includes the following elements: evaluation of the current business model; development of a competitive strategy, the organization's vision and mission, and its strategic and tactical goals; compilation of the formal strategic plan; and establishment of measurement and reporting capabilities and a stakeholder communication plan. It is usually not necessary or desirable to attempt to complete the process in a single board meeting or strategic planning session. A structured, well-planned approach is more likely to result in a strategic plan that is optimal, effective, and likely to be used on an ongoing basis rather than being relegated to a shelf and forgotten until a crisis arises.

Brainstorming should be used throughout the strategic planning process to achieve optimal results. It is important to acknowledge and capture all ideas, not just those that are used immediately, because they may be valuable after refinement or at a future time.

Understanding and Assessing the Business Model

The business model of an arts organization is established by developing a realistic assessment of reliable net income. The first step is to establish how the organization makes ...