Monday, February 4, 2013

Strategic Management



Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.

Now that we have the definition of what Strategic Management is now we will look at how this process assists businesses around the world in running effectively. Some do not understand the important of having some knowledge on the subject. Any business can benefit and it also gives higher ranking executives and managers a better understanding of business in a whole.

Strategic Management gives the people in charge the ability to develop clear goals, understanding of all of their markets, identify strength and weaknesses, as well as planning strategies for the future. There are several other break downs of the process that allow the higher ranks in making decisions that include:

Evaluating Strategy

  • Suitability; does the strategy effectively address the mission?
  • Feasibility; can it be made to work?
  • Acceptability; will stakeholders accept the strategy?

  • Suitability

  • Does the strategy address the mission?
  • Does it reflect the organization's capabilities?
  • Does it make economic sense?

  • Feasibility
  • cash flow analysis and forecasting
  • break-even analysis
  • resource deployment analysis

  • Everything stated above contributes to the Strategic Management process. Asking questions along with trial and error will always be a big part of the process but having answers to some of these questions can point executives and managers in the right direction.

    Implementation is also important. It is always great when an idea or strategy works but we must also analyze the ones that do not. Some may need to be retired altogether but some may have potential but a new approach is needed. Before deciding to continue an investment in a product or service a proper analysis should be run.

    To find out more about business strategies and management check out our blog articles at http://akutagawainternational.blogspot.com or visit our Company Website and click on Blogs for more information

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