Strategic Management an Effective Business Strategy

Strategic Management an Effective Business Strategy

Importance of strategic management in today's corporations

Organizations that employ strategic management as part of their functions usually do better than those organizations that do not employ strategic management. It includes the accomplishment of a suitable match between an organization's culture and its strategy. Organization's structure and processes has constructive effects on the performance of an organization. An organization cannot afford to implement sensitive strategies once start growing or become large. Since they have layers of management and their environment changes dynamically. The world has now become so dynamic that organizations are facing lots of chances within short span of time therefore strategic management techniques are used by organization of today to sustain in this dynamic world and cope up with the requirement of the environment (Attia and Hooley, 2007).

Another reason because of which strategic management deemed to be very important in today's corporation is increasing competition and enhancement in the technology. Organizations which are not able to implement these technologies in the given time can result in inefficient and ineffective productivity. Alignment of goals with the strategic vision and mission is very important these days. Strategic management helps the management to align these goals with vision and mission and also help to create new opportunities for the organizational development through environment scanning. Employees are also considered as an important part in achieving the goals of the organization. Strategic management involves employees to become an active part of decision making through shared goals, trainings and feedback. When employees are involved in decision making process they become more attached and committed towards the goals of the organization. Individual learning is also a part of strategic management (Wicher & Chau, 2010).

Evolution of strategic management in a corporation

Strategic management in a corporation typically involves four steps of evolution. These steps include Environmental analysis, Strategy formulation, Strategy implementation, Evaluation and control.

Strategy formulation involves the scanning of internal and external environment. This is also known as SWOT analysis. Externally opportunities and threats are analyzed and internally strengths and weakness are analyzed by corporations.

Strategy formulation includes formation of vision, mission, objectives, strategies and policies. This is the most important step in strategic management and strategic decision making. A company describes its mission so that the employees and the people who are attached to the organization can know about the existence and establishment of the organization the management setup the vision in order to tell the stakeholders where the organization will be in future. This is very important for the organization's going concern. Management plans the results which they aim to achieved through setting up objectives. Objectives work as the fuel for the organization. In order to achieve the mission of the organization short term and long term objectives necessary to be decided.

Strategy implementation is another phase of strategic management which includes program design i.e. planning about activities needed to accomplish goals, budget planning and procedure design. Procedure design includes the steps required to perform a ...