All businesses desire to grow and achieve their objectives. However, for most businesses, the pursuit of the objectives and growth remains daunting. On the other hand, there are other businesses which have achieves success that astound and exceed expectations. Strategic planning and management is what sets the two classes of businesses apart. Essentially, strategic planning is concerned with establishing priorities and ensuring that the routine operations of a firm are in line with its long-term objectives and vision. For firms to be successful, they must adopt strategic planning and management.
Components of Strategic Management Process
The main purpose of strategic management is to enable firms to leverage their resources to exploit opportunities available in the markets in which they operate (Sekhar, 2009). If firms are to be successful in their adoption of strategic management, they need to follow an established process. The first component of the strategy management process involves recognizing the importance and function of strategy and performance (“1.5 Understanding the Strategic”, 2016). Firms need to understand that strategies are among the tools that drive performance. With this understanding, the firms are set to proceed to the second component. Environmental scanning constitutes the second component (“1.5 Understanding the Strategic”, 2016). Essentially, environmental scanning is concerned with evaluating its internal operations and structure, and assessing the realities of the market in which a firm operates. The importance of this component lies in the fact that it enables firms to identify the resources that it can use to implement its strategies (“1.5 Understanding the Strategic”, 2016). The third component is concerned with formulating strategies. At this stage of the strategic management process, a firm develops business and corporate-level objectives whose attainment will allow for the accomplishment of overall mission. Strategy implementation is the fourth component of the strategic management process (“1.5 Understanding the Strategic”, 2016). Here, the objectives and strategies that the firm has developed are put into action. This stage marks the culmination of the process and helps to fuel growth. Each of the four components of the strategic management process is critical to the accomplishment of the goals that a firm has set.
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Internal and External Analysis
Internal and external analyses are critical components of strategic management and planning. Essentially, an internal analysis involves an examination of the processes, structures and policies that a firm has adopted and the impact that they have on the firm’s operations and performance (Pahl & Richter, 2009). For example, as part of the internal analysis, a firm could focus on the role that the allocation of resources and marketing strategies play in determining its performance. On the other hand, an external analysis is concerned with exploring the dynamics of the larger environment in which a firm operates (Pahl & Richter, 2009). For instance, in its quest to understand its operating environment, a company could examine the practices of its competitors and the impact that technology has on the direction of the industry. Essentially, whereas an internal analysis is concerned with the factors that are within the control of a company, the main focus of an external analysis are the forces that a firm cannot influence.
Responsibilities and Duties of Strategic Manager
It is true that strategic management is a complex process that requires the involvement of various stakeholders. However, there are some stakeholders who play critical roles and their involvement is necessary for the success of strategic management. The strategic manager is among these stakeholders. Coordinating the efforts and activities of the stakeholders involved in a particular project is one of the key responsibilities (Rodomska, 2014). Other duties include making major decisions, ensuring that adequate resources are available for the completion of a project, and ensuring that appropriate communication channels are in place. The strategic manager is also expected to monitor the implementation process to ensure that it is in line with the objectives (Rodomska, 2014). When the manager observes that the project has deviated from the right path, it is his mandate to take corrective action. Overall, the strategic manager is responsible for ensuring that projects are successful by bringing together all the factors that are needed for effective implementation.
The Need for Strategic Management Planning
An increasing number of firms are integrating strategic management planning into their policies and operations. This trend raises the question of why firms need to adopt strategic management planning. That it enables business to achieve growth by developing their competitive advantages is one of the issues that necessitate strategic management planning (Tapera, 2016). For example, through strategic management planning, a firm can develop cost-effective solutions that enable it to meet the needs of its customers. Another role that strategic management planning plays is that it makes it possible for firms to respond to changes (Durmaz & Dusun, 2016). For instance, using strategic management planning, a firm is able to respond to the entry of new competitors into the market. Efficient resource allocation and aligning operations with overall mission are other issues that allow one to understand why firms need to adopt strategic management planning.
In conclusion, strategies continue to fuel business operations. By adopting effective strategies, firms are able to gain competitive advantages while developing core competencies. For a firm to effectively adopt strategic management planning, it needs to understand the process. This process is composed of different components which enable firms to leverage opportunities in the market. As they adopt strategic planning, companies should conduct an internal and external analysis so that they establish their readiness to exploit opportunities while eliminating threats. Since it serves critical functions, strategic management planning is an inevitable component of business success.
References
1.5. understanding the strategic management process. University of Minnesota Libraries. Retrieved September 24, 2018 from http://open.lib.umn.edu/strategicmanagement/chapter/1-5-understanding-the-strategic-management-process/
Durmaz, Y., & Dusun, Z. D. (2016). Importance of strategic management in business. Expert Journal of Business and Management, 4 (1), 38-45.
Pahl, N., & Richter, A. (2009). SWOT analysis, idea, methodology, and a practical approach. Munich: GRIN Verlag.
Rodomska, J. (2014). The role of managers in effective strategy implementation. International Journal of Contemporary Management, 13 (3), 77-85.
Sekhar, G. V. S. (2009). Business policy and strategic management. Delhi: I.K. International Pvt. Ltd.
Tapera, J. (2016). The importance of strategic management to business organizations. Research Journal of Social Science & Management, 3 (11), 122-131.
