Introduction
Strategic management is an approach to management that deals with diverse and distinct initiatives. These initiatives are taken by the management on behalf of shareholders to ensure that resources are properly utilized.
In the long run, the organization will be able to perform well in its business undertakings (Ohmae, 1982, p. 17). It is done by outlining an organizations goals, vision, mission and objectives. This develops plans and policies that will be used to achieve specific goals and objectives through effective and efficient allocation of resources.
Evaluation of an organizations performance is carried out through a good and balanced score card. Stakeholders’ expectations should also be considered for sustainability. In a broad perspective, strategic management is an involving activity that sets goals and business tactics (Ohmae, 1982, p. 19). As a matter of fact, it provides the overall direction that an organization is expected to take for success.
Strategic management can be used to enhance consistency in operations. This consistency will only be realized if organizational actions are executed as per the company’s expectations.
In addition, strategic management will be defined by an organizations culture. This means that all stakeholders are supposed to be involved for efficiency. In this case, it should be an ongoing process that will control a given company’s operations (Juran, 1982, p. 23).
Background
Strategic management sets good strategies that can be used to asses various competitors. These strategies are later on reassessed to know if they have been successful as per the company’s expectations. There are various strategies that might need replacements to meet changes in the business environment (Juran, 1982, p. 28).
This can be the economic and political environment, new technology and new competitors. There are various approaches to strategic management depending on a company’s culture.
The basic model of strategic management is the pattern that is used in strategic management (Traverso, 2000, p. 14). Companies are therefore free to choose a model that will work out for them depending on their organizational culture.
It should also be known that there is no strategic management plan that can always be perfect. This allows companies to design their own strategic planning models. This should be done by frequently choosing models and then transforming them to suit an organizations expectation.
Strategic management entails a calculated process in which the management of an organization intends to realize a strategy worth of implementation. This is done as per the organizations goals and objectives (Traverso, 2000, p. 34). In this case, there are steps that are supposed to be followed.
For instance, the management should look at the company’s mission and objectives. This will enable them to settle on a good situation analysis thereby formulating effective strategies (Ohmae, 1982, p. 32). After this has been done, these strategies are supposed to be applied and controlled to ensure that they give the desired outcome. The company will therefore be able to get positive results by embracing strategic management.
Strategic management formulation combines various processes. The organization should carry out a situation and competitor analysis. By doing this, it should look at the current business environment through self evaluation. After self evaluation and assessment, the company should outline its objectives.
This involves tactical, business unit and corporate objectives. In addition, it should also craft out good vision and mission statements (Kearney, 1992, p. 43).
In strategic formulation, the management will outline where they want to go as an organization. This can also involve other stakeholders for long term sustainability. The organization should know how to create value to customers by being flexible.
In the process, they will be able to know if their strategy is sustainable. Strategic formulation modifies a company’s current business strategies. The formulated strategy should be effective in solving various organizational problems (Kearney, 1992, p. 49).
These strategies should be practical to the organization and therefore easy to implement. Formulation should be feasible over a given time frame, not disruptive, cost effective and acceptable to all stakeholders.
Strategic implementation is putting into practice what has been formulated. This is done by specifying assignments and milestones. Strategic implementation is very important as it forms the core of any business strategy (Crosby, 1979, p. 9).
Implementation should be done through effective strategic measurement. Effective and efficient leadership is necessary in this stage of strategic management. For successful strategic implementation, organizations are supposed to manage various factors well (Traverso, 2000, p. 25). This includes action planning, organization structure, human resource, annual business plan, monitoring and control and linkage.
Organizations should come up with good action plans that will define the implementation process. Enough financial resources are supposed to be availed to support human resource efforts for successful strategic implementation (Crosby, 1979, p. 9). Monitoring and control should also be enhanced to ensure that everything is on track as per the chosen business strategy.
Objectives
There is a very big relationship between a successful business and effective strategic management. This is because strategic management allows an organization to lay out good strategies for its future operations (Traverso, 2000, p. 32). On the other hand, it will also be able to influence and initiate its own activities. In a broad perspective, companies are supposed to exercise control over their destiny.
Strategic management is being used because of its importance in business operations. This can be seen in helping organizations to formulate better strategies.
Organizations have done this through logical, rational and a systematic approach to choice. The benefits of strategic management can be seen in both financial and non-financial perspectives. Financial benefits will be seen in enhanced productivity, high sales and profitability (Feignbaum, 1990, p. 15).
On the other hand, non-financial benefits can be seen in various aspects. For instance, an organization will have a better understanding of competitor strategies.
Strategic management also helps organizations to enhance their problem- prevention capabilities and abilities. In the process, they will be informed of threats that they are likely to face in the market. This will enable the organization to be ready for any unexpected changes that might arise in the course of doing business.
Strategic management helps organizations to overcome any foreseeable problems. This should be done by looking at their business value to eliminate risks that may come about as a result of changing business trends and environment.
Businesses should not look at strategic management in terms of profits but they should view it as an avenue for value addition (Feignbaum, 1990, p. 19). It can also be used to redefine responsibilities in relation to existing management trends.
Finding and analysis
In recent years, many business organizations and companies have seen the urge and need to use strategic management because of the ever changing business environment. The current business environment is very competitive and demanding. Strategic management is therefore being used to assess competitors by setting strategies and goals that will be used in the market.
This is why many organizations have been forced to come up with good strategic plans thereby embracing strategic management. Almost every business aspect requires strategic management for sustainability (Berry, 1995, p. 11).
This has made businesses to change their perception on strategic management as a necessity for success. Companies have been using strategic management to ensure that their products gain considerable market dominance.
Competition is always intensifying in the market place and this has seen many companies come up with plans to gain competitive advantage. This has been complicated by the unpredictable business environment that companies are exposed to.
In a real market scenario, strategic management plans are formulated for implementation (Toffler, 1980, p. 24). After implementation, they are then reviewed to assess different outcomes. Companies are therefore advised to review their plans for sustainability (Reichheld, 1996, p. 13).
The process of launching products requires a more positive approach to strategic management. Many companies have successfully launched their products thereby coming up with strong brands in the market (Traverso, 2000, p. 32).
Others have not been successful and this can be seen from the recalling of products. For instance, Toyota has recently recalled more than 21 million cars from the market. This can be blamed on poor strategic planning.
Although strategic management has gained wide acceptance in real market scenarios, some companies have not succeeded in their approach. This means that there are various reasons as per to why strategic plans fail to make an impact as expected (Malcolm, 2000, p. 17).
For instance, many organizations do not understand diverse consumer needs in the process of coming up with their strategies. In the long run, their efforts do not add value to customers.
Inability to predict environmental reactions can lead to failure of strategic plans. In this case, organizations underestimate what competitors can do in relation to price wars and fighting for brands.
Other organizations have not been able to obtain employee commitment. New strategies are supposed to be explained to employees for proper execution (Malcolm, 2000, p. 25). Poor communication has also affected the implementation of strategic plans.
In such scenarios, there should be sufficient information sharing among various stakeholders. A strategic plan should be followed to the later. This means that there should be a follow through after initial planning. In addition, organizations are supposed to track progress against their plan (Quinn, 1992, p. 21). As much as strategic plans are formulated by the management, they are also supposed be fully committed.
Conclusions and Recommendations
Strategic management should be done through proper plans and policies. Evaluation of an organizations performance is carried out through a good and balanced score card. Stakeholders’ expectations should also be considered for sustainability.
In a broad perspective, strategic management is an involving activity that sets goals and business tactics (Malcolm, 2000, p. 8). As a matter of fact, it provides the overall direction that an organization is expected to follow for success.
Strategic management can be used to asses a company’s operations for consistency. This consistency will only be realized if organizational actions are executed as per the company’s expectations. In addition, strategic management will be defined by an organizations culture (Reichheld, 1996, p. 13).
This means that all stakeholders are supposed to be involved for efficiency. In this case, it should be an ongoing process that will control a given company’s operations.
Strategic management helps organizations to overcome any foreseeable problems. This should be done by looking at their business value to eliminate risks that may come about as a result of changing business trends and environment.
Businesses should not look at strategic management in terms of profits alone but they should view it as an avenue for value addition. It can also be used to redefine responsibilities in relation to existing management trends.
Effective strategic management takes a very important role in the success of a given organization. Therefore, for companies to compete well, they are supposed to embrace strategic management for sustainability in their operations (Feignbaum, 1990, p. 31).
This should be done by involving all stakeholders. As a matter of fact, every stakeholder has his/her own expectations that are supposed to be fulfilled. Organizations should continually use strategic management to enhance their problem- prevention capabilities and abilities.
Although strategic management has gained wide acceptance in real market scenarios, some companies have not succeeded in their approach. This means that there are various reasons as per to why strategic plans fail to make an impact as expected.
For instance, many organizations do not understand diverse consumer needs in the process of coming up with their strategies. In the long run, their efforts do not add value to customers. Therefore, companies should ensure that strategic management is an all inclusive activity (Traverso, 2000, p. 43).
Reference List
Berry, L. (1995). On Great Service. New York: Free Press.
Crosby, P. (1979). Quality is Free. New York: McGraw Hill.
Feignbaum, A. (1990). Total Quality Control. New York: McGraw Hill.
Juran, J, M. (1982). Juran on Quality. New York: Free Press.
Kearney, A.T. (1992). Total Quality Management: A business process perspective.USA: Kearney Press Inc
Malcolm, G. (2000). The Tipping Point. New York: Little Brown
Ohmae, K. (1982). The Mind of the Strategist. New York: McGraw Hill.
Quinn, J.B. (1992). Intelligent Enterprise. New York: The Free Press.
Reichheld, F. (1996).The Loyalty Effect. Boston: Harvard Business School Press.
Toffler, A. (1980). The Third Wave. New York: Bantom Books.
Traverso, D. (2000). Outsmarting Goliath. Princeton: Bloomberg Press.