Strategic Planning and Management
Date of Submission
Components of Strategic Management Process
The strategic management procedure is more than just a mere set of regulations that has to be followed within a business set up as it is a philosophical mechanism to any organization that needs to strive in a business environment. It is essential for the critical executives to outline and look into detail the planned process before the actual implementation of the thought techniques applicable for the institution. The strategic management procedure is efficiently incorporated into an institution when every stakeholder understands the essential components and processes (Hill, Jones & Schilling, 2014). The first component is the vision or the motto that is typically significant for the development of any business institution as vision statement will define where an organization is and the place it wants to reach in the coming years. A vision is also essential as it describes the type of actions that ought to be taken to fulfill the best needs of all the stakeholders that are determined to the see the business succeed.
According to Hill, C. W., Jones, G. R., & Schilling, M. A. (2014), the mission is another critical component of strategic management process as it intends to inform the customers and other stakeholders the predetermined manner in which the organization plans to serve them. A mission statement can be applied to highlight the broad groups, the scope of the operations and the way in which the products will alter the whole course of its consumption. Goals and objectives is another critical component of strategic management process as they outlines whether the business is determined to achieve either its long term or short term strategies regarding the set conditions and scenarios of the institution.
Internal and External Evaluation
The achievements and stability of an organization typically rely on effective planning initiatives that look into the internal and external considerations that affect the operation ability of the business. A SWOT analysis is the most popular used technique for evaluating a business’s strengths, weaknesses, opportunities, and threats affecting its intended goals and objectives (Demil & Lecocq, 2010). Therefore, the strength and weaknesses are grouped as internal components of the strategic plan and opportunities and threats falling into the category of external components. The internal evaluation looks into the internal factors that typically give an institution some advantages and disadvantages regarding achieving the set needs of its target market. Strengths define the fundamental competencies that provide a business an edge in fulfilling the intended needs of its target customers.
Therefore, evaluating the strengths of a business ought to be market focused since these strengths are only significant when they assist the industry in fulfilling its consumer wants. The weaknesses highlight the limitations that an organization is exposed to in growth or implementation of the planned strategy; therefore, should be scrutinized from a consumer view since they often perceive weaknesses that a business is not capable of realizing. Thus, all organizations should bring together their strengths and weaknesses to consumer needs (Demil & Lecocq, 2010). On the other perspective, the external analysis focuses on the opportunities and threats available within the business surrounding as the two are viewed to be independent of the institution. Opportunities are favorable status with an institution’s environment that can produce advantages if efficiently leveraged. On the other notion, threats are considered as barriers presented to a business that deters them from achieving the set goals and objectives.
Roles of Strategic Manager
Strategic managers are charged with the duty of attaining the needed business results through consumer satisfaction, handling the stiff competition and scrutinizing market information. The strategic manager is responsible for strategic planning where he or she will be tasked with decentralized project planning procedures and marinating that its adoption focuses on the entire business (Freeman, 2010). Also, the manager is charged with strategic performance evaluation where he or she will engage in the development of essential business infrastructure with the aim of facilitating analysis program and reporting of performance against plans and budgets together with strategic goals. The manager is further charged with the responsibility of coming up with vital threat identification and scrutiny procedures as well as monitoring their incorporation and adoption across the entire business environment.
In conclusion, industries need to incorporate strategic management planning as it provides a sense of direction and highlights the measuring goals. A strategic plan is significant equipment that is essential for delivering course regarding decision-making processes and changing techniques when moving forward as a company.
Demil, B., & Lecocq, X. (2010). Business model evolution: in search of dynamic consistency. Long range planning, 43(2-3), 227-246.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.