Strategic management is widely recognize as vital due to its use and benefits in businesses. Most firms currently engage in systematic strategic management processes; however, the strategies employed vary based on the organization’s emphasis and needs. According to research, there are five different areas of strategic management, each with a particular level of complexity and focus (Steiss, 2019).
Knowing the sort of strategic management that a business uses can assist executives and stakeholders in better understanding if the organization has appropriately evaluated environmental elements and has produced successful strategies and goals to address opportunities and threats.
To survive and grow in this increasingly competitive environment, businesses must think strategically. Strategic management includes five essential areas. They involve creating a strategic vision and mission, establishing objectives, planning tactics to meet those objectives, implementing and executing the tactics, and reviewing and measuring performance. Also, you can see the 5 major areas of strategic management in student’s previous Dissertation Samples online.
5 Major Areas of Strategic Management
1- Developing a Strategic Vision and Mission
The first part, defining a strategic vision and mission, entails putting management’s long-term view of where the company is going on paper and communicating it to its employees. This directly connects both the vision and the mission. The mission statement explains why the organization exists. Companies in the same industry sometimes have similar mission statements. The vision represents management’s vision of where the company is going. Typically, the CEO is in charge of this area.
Executive leadership should not create the mission and vision out of thin air. For every business, there is a mission and a vision. Sometimes the vision exists only in the minds of top management. Management must figure out what it is and communicate it to employees. A clear and precise mission and vision will help the organization in working together toward the same goal. It is also used in another strategic management area.
2- Setting Objectives
The second step, setting objectives, takes the strategic vision and develops specific goals to achieve the vision statement. Goals should be achievable but not readily achieved. These are known as “stretch” goals because they force the company to go as far as possible to achieve the goal. Goals that are set too low will lead to complacency. Setting these goals clears up any misconceptions employees may have about what must be done.
Long-term and short-term goals should be set. Short-term objectives will encourage current performance, while long-term objectives will position the organization to achieve what is outlined in the vision in the future. Long-term goals should take precedence over short-term goals. Companies that focus on short-term goals fail in the long run.
3- Creating Tactics to Achieve Organizational Goals
Management defines ways to accomplish the given objectives in the third step, crafting strategies for achieving organizational objectives. Management decides how to best respond to changes in the environment, climb above the competition, and progress toward the company vision and strategic objectives at this step.
4- Implementing and Executing the Tactics
The fourth phase, planning and executing the tactics, include identifying how much company resources should be devoted to each activity, establishing policies, motivating employees, giving the resources needed to meet goals, and encouraging a culture of continuous improvement.
Tactics must be customized to the skills and culture of the company to be effective. Change is almost certainly required, although the quantity of change required varies depending on how new the tactics are. This usually involves changing regulations or assigning funds, relocating individuals, retraining and retooling, or making changes to reward systems. Each management must examine the techniques and their department to determine how to apply each strategy correctly.
Evaluating and Measuring Performance
The fifth phase, reviewing and measuring performance, is how management determines whether or not the strategies used to achieve organizational objectives and comply with the strategic vision are effective. If performance falls short of expectations, corrective action is requiring
Just like the editing phase of assignments, it’s important and the final face of assignments to evaluate the quality of assignments. Usually, students get help from dissertation editing services to assess the quality of work and fix errors (helpwithdissertation, 2021).
Financial statistics, customer satisfaction, quality reports, employee contentment, and capital utilization are all ways to measure performance. To get a complete view of a tactic’s success, each measure should be able to examine it.
Wrapping Up
Strategic management is widely consider to have both financial and non-financial benefits. A strategic management process helps an organization and its leadership think about and plan for its future existence, fulfilling a key responsibility of a board of directors.
Strategic management sets a course of action for the organization and its employees. Unlike one-time strategic planning, successful strategic management continuously develops, evaluates, and tests an organization’s activities, resulting in increased operational efficiency, market share, and profitability.
Reference
HWD, 2021. Editing Vs Proofreading – How Are They Different? Online available at https://www.helpwithdissertation.co.uk/blog/editing-vs-proofreading/ [Accessed Date: 27-march-21]
Steiss, A.W., 2019. Strategic management for public and nonprofit organizations. Routledge.
