Strategic management involves identifying and depicting the plans that executives can execute so as to realize better performance as well as establish a competitive advantage in their respective markets. A firm is considered to possess a competitive advantage if it realizes higher profits than the average profit of other businesses in the same industry. The management involves a couple of decisions and actions which the managers implement and whose outcome decides the company performance. Therefore the manager needs to have a thorough know-how on competitive analysis and competitive organizational setting so as to take the correct resolutions. The assessment is necessary as it helps the organizations to set strategies to meet the current competition and re-examine the policies on a regular basis to determine in what way it has been applied before and whether it was fruitful or it needs replacement (Rothaermel, 2015).
In the strategic management process, the integration of the company's activities, utilizing and allocation of scarce resources within the organizational setting is required to meet the current objective. Some crucial strategic decisions and components need to be looked into so as to leave no vacuum as well as meet the result of the strategy (Rothaermel, 2015). Definition of the business is important as a basic setting for organizational activities and to reflect on the kind of company they are creating, the markets that the firm will be involved in and the specific consumer needs.
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Establishment of strategic objectives supports and converts the direction of an organization and target specific performance to achieve and also guard against aimless activities, drift, and confusion on what to accomplish or loss of purpose. The establishment of objectives involves the conversion of targets into a particular performance that needs to be achieved, guards against loss of purpose and goals of annual profitability (Rothaermel, 2015).
The formulation of strategy entails on how the targeted results would be attained and accomplished to achieve both long and short term results. The right formulation approach responds to various changing conditions like the shift of customer needs and the emerging industrial developments. The right formulation choice and strategy helps the managers in the ability to contribute and develop modified resolutions that apt the exclusive structures of an establishment's condition. Strategic enactment and implementation entail positioning the strategies keen on place and get the organization to execute their tasks and implement them. Evaluating strategic performance and making a corrective adjustment is necessary for particular circumstances. It helps in the testing new concepts and knowledge of what is working and what doesn't over and done with test and error (Chang, 2016).
Strategic management has a managerial responsibility to achieve competitive advantage through boosting the internal resources and netting the external opportunities and evade external pressures. The internal conditions are varied and depend on the organization. Nevertheless, the management has strategic plans to regulate the several internal conditions. A value chain is a standard tool that identifies the supporting activities that include infrastructure, technology, and employee skills as well as the first undertakings that potentially create profit which include getting inputs, supply, and sales (Chang, 2016).
The external factors are more varied and complex, market or customers are demographic and social-cultural concerns. To understand the needs and choices of the market is vital to providing what is in demand. Competition requirements for strategies that pose key to success with the consideration of quality and ensure how given company can quickly enter the market. Other external factors include supplier markets, labor market, economy and the regulatory environment (Chang, 2016). Although they are many external considerations to be taken to account, they give a good guideline on what to be considered in minimizing threats that are unanticipated or the missed chances. Through, the internal and external settings in mind, flexible strategic principles are outlined that strengthen opportunities to create profits and optimistically add competition advantage.
The role and responsibility of a strategic manager begin with planning and directing the internal strategies thus invite the other top managers in the process for the preparation of the strategic plan. The strategic planning manager focuses exclusively on strategy formulation by the strategy team or by themselves. The execution, responsibility of implementation and the ownership of the policy belongs to the manager who also has the role of providing stages of formulation. The strategic manager also contributes to the planning team, and his influence surpasses that of any other contributing manager. Another role is to give advice on the conduct of the planning process, particular features of the content and recommend tools to help the planning team in their discussions (Chang, 2016). The facilitation role is another aspect of the character in the hands of a strategic manager. Other responsibilities of the strategic manager include making economic and market predictions, analyze financial risks, look for new business areas, apply techniques for planning and examine strategic suggestions (Chang, 2016).
Strategic planning is very significant in an organization as it provides a common sense of direction and plans for the measures to be implemented for a prosperous business. Strategic planning involves the vision, mission and thinking out of the box, it relates to where a company is headed. The planning strategies act as designs and focus on the overall company vision of successful results. The plan defines the company's mission as an important aspect of an organization through linking of ideas to practical strategies (Goetsch & Davis, 2014). The management and the employees are helped to align to particular actions and decisions that clearly outline vision and direction. Planning contributes in setting up of goals that are important in a company; they enable managers and employees to evaluate development and growth.
References
Chang, J. F. (2016). Business Process Management Systems: Strategy and Implementation . Boca Raton, FL: CRC Press.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence . Upper Saddle River, NJ: Pearson.
Rothaermel, F. T. (2015). Strategic management . New York, NY: McGraw-Hill.
