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Strategic Management Process: Components and Role Essay

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Updated: Jun 18th, 2020

Introduction

In business, a plan is put in place by the corporations to facilitate the aspiration of accomplishing the set objectives and long term aims. In fact, the tactical plan remains important for any company in meeting the corporate shareholders’ expectations and needs besides safeguarding the continuous success of the business. Hence, the vital component of any strategy is to expand the competitive benefit in the day-to-day fluctuating social, political, as well as commercial situations. The need for the effective and efficient administration of a strategic plan enables the company to realize its accomplishment. The process encompasses three key components, such as the tactical position, planned choices, and the interpretation of plans into practice.

Tactical position

Any corporation should be entirely aware of the existing strategic situation besides learning the features that might influence such a position for the smooth execution of strategic management. However, most businesses can never function successfully devoid of forces from outside. The external powers required by the business range from several subjects. Through external forces, the administration can observe where the pressures and prospects of the tactical plan come from during operations.

With respect to corporate governance, additional rules have been presented. The varying consumer anticipations like a fair business, corporate governance, and the interchange of organic merchandises have come into being in most cases. A vibrant picture of the external factors will make it easy for whichever corporation to assess the existing threats and opportunities that must be considered in the strategic plan. The other constituent of position is defined by assessing the proficiency of the business. The valuation is aimed at appraising the weaknesses and strengths of the company. Perhaps, the company can aspire to learn that it possesses the necessary human and physical resources in discharging the strategies. The corporation might also know its regions of proficiency that offers the required competitive advantage.

Planned choice

As soon as the evaluation of the entire information and statistics has transpired, choices must take place as the procedure for decision making. Incorporate setting, the strategic component of choice is built on distinguishing parts of the company that provides better competitive benefits and opportunities (Rothaermel, 2012). In general, this might incorporate components like technology, price, as well as products and services.

Interpretation of plan into practice

The ultimate component of a strategic management process is the effective and affirmative interpretation of the corporate calculated plan into practices. The leading part of the interpretation procedure is to make sure that the administrative structure is properly planned and calculated. The structure should lead to a positive presentation of the planned strategy. Thus, the interpretation guarantees that the resources are put into their intended position. Moreover, properly calculated and planned translation ensures that the connection, communication, and business mechanisms are organized professionally.

Strategic management of British Airways

Transport is recognized as a vital implement in terms of business. Shipping corporations like British Airways is one of the companies that employ strategic management to promote their accomplishment. The major strategy that British Airways utilized was to merge the other air companies in order to form a single company. The airlines in Britain amalgamated and formed the British Airways Company. The most important point for amalgamation was to possess the right of entry into a superior marketplace while instituting the worth of long-standing output. However, inventions and modifications are the essential aspects of the Company (Knight, 2008). Finally, British Airways recently (fiscal 2005) opted to operate with Prime and Cisco in order to improve its transport network. While developing efficiency and decreasing costs, the system allowed access to all the data and voice communications in a solitary network.

Conclusion

In regard to increasing the welfare of the business, tactical management is a significant technique for every company. The process remains imperative for the company is embracing the anticipations and needs of the shareholders besides protecting the constant realization of the business goals. Hence, the strategic management plan symbolizes an addition of affluence to the investment of the business when it comes to the stakeholders.

References

Knight, B. (2008). Strategic management of British Airways Company. Web.

Rothaermel, T. (2012). Strategic management: Concepts and cases. New York, NY: McGraw-Hill/Irwin. Web.

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IvyPanda. 2020. "Strategic Management Process: Components and Role." June 18, 2020. https://ivypanda.com/essays/strategic-management-process-components-and-role/.

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