Saturday, August 07, 2010

What is the strategic management and why it is so important?

What is the strategic management and why it is so important?
The strategic management is one of the key business issues dealt with by our office and our magazine. Because you are constantly looking at various aspects of strategic management in these pages, it is useful to look at some of the most common questions on contemporary strategic management and response.
What is the purpose of strategic management?
The preparation and execution of the strategy of an enterprise.
What is Strategy?
A draft action plan for implementing the objectives of a business. It consists of decisions and well-planned moves that result in good business performance, creating long and lasting competitive advantage.
What contributes to a successful strategy?
Good preparation and good execution. The most ingenious strategy is ineffective if enforcement is poor. Similarly, a modest but effective strategy if implemented can create competitive advantages for a company. A good strategy and good execution is the most important information right management.
Enough good a strategy and good execution of?
No, why do not guarantee lasting success. Sometimes unforeseen adverse developments affecting adversely the performance of a company can have a perfect strategy and deliver exemplary execution. In this case, managers must make appropriate adjustments to overcome the adversity this company. However, I must ensure that the business is still strong and flexible to be insensitive to unforeseen developments.
What is required for the preparation and execution of strategy?
Five key tasks of strategic management:
- Mission: to develop a business idea, the manifestation of a vision about the direction of the company and the expression of a mission
- objective: to transform the mission into specific objectives, financial (eg development of earnings) and strategic (ie market share)
- devising a strategy: how to pursue these goals successfully. Requires analysis of the firm, competitors, competitive game and its rules. It also requires an analysis of strengths and weaknesses of the company and its prospects
- Strategy implementation: an efficient and effective implementation of the objectives
- monitoring, evaluation and adjustmentMeans continued monitoring, continued examination, Continuous assessment and correction of the above The results of executing the Indeed, changes and developments, new opportunities, new ideas
The three first is the "strategic plan" of a company. Many times, especially in large businesses, the plan can be written and detailed. In others there may be simply form a common vision among all employees about the company and purposes. There are no clear boundaries separation of these functions and strategic management is separated from other activities of the company and managers, and not static. In practice, strategic management is key usually aim for continuous improvement of good strategy and improved execution, rather than devising some new, radical projects. Usually the benefits of This improvement is greater than some large, drastic change.
About managers are involved in strategy?
The Managing Director (CEO, Chief Executive Officer) is longer evident. As the captain of a ship is responsible for devising and executing the overall business strategy. A lot But other agents involved in tasks such as heads of various functional departments (eg production, marketing, funding, research & development, human resources, etc.) To devise appropriate operational strategies for their departments performance of the overall strategy, but involved in developing it. All managers have a strategic function in modern enterprise regardless of whether it is somewhat closely as lower one is a hierarchy. It is impossible in a modern business, a small group of leaders to have full knowledge of all factors involved in strategy, particularly if company has a presence in many markets or offers a variety of products and has many plants and distribution.

Why need to think "strategically"?
The advantages to think strategic, rather than to improvise, to wandering, wandering as unnecessarily business is done. All the company has a clear idea of "who we are and what trying to achieve." Managers alert to changes, opportunities, problems and have a specific context evaluating their options, particularly conflicting choices. Created in business climate of a mover and action rather than reaction and defense, climate ultimately lead to a major competitive advantages. As aptly observed once the led a successful US Undertaking all competitors in the industry have at their disposal the same information follow the same principles and approaches management and can go as we want everything. The difference in the degree But our success lies in how well more and more self-remedying develop and execute our strategies for the future. "
How important is the strategic management?
It is perhaps the most important job of manager a business. Very few other activities affect the underlying long-term prosperity of an enterprise by selection of appropriate targets and devising and execute the appropriate strategy for achieve them.

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