The Advantages Of Strategic Management Essay

1172 words - 5 pages

In a business, there are several factors that either facilitate the success of the business or affect the achievements of the business. Strategic management is the process of studying and putting into practice any factors favorable to the business, and eradicating any factors that may adversely affect the business. Jurevicius (2012) defines strategic management as the science and art of formulating, evaluating, and implementing cross-functional decisions that are key to an organization's ability to achieve its objectives. The differences in business performance are mainly caused by management's ability to employ strategic management skills in the running of the business. Strategic management involves analyzing issues concerning the business structure and environment, making the correct decisions about how to deal with problems, and putting the decisions into practice, with the aim of countering competition and enhancing business outcomes (Dess, Lumpkin, & Taylor 2005, p. 1). In strategic management, managers need to work not only on the internal business environment, but also on the external business environment, formulating competent strategies, executing those strategies, and then assessing the effectiveness of the strategies and making the necessary adjustments, if the need arises (Parnell 2008, p. 2). In the internal business environment, strategic management involves the creation of such an environment, whereby all activities are coordinated effectively and are geared towards achieving the business objectives. During the formulation of the strategic management plan, managers define the mission of the business and lay down the strategies to be followed by all employees in working towards realizing the mission. The mission of a business should be achievable. The management needs to consider the business resources so as not to set a mission that is far beyond the company's resources. The management, through the mission, vision, and strategies laid down, gives employees a sense of direction. They become aware of what the business is aiming to achieve (Dess, Lumpkin & Taylor, 2005, p. 2). Strategic management is supposed to provide guidelines on how the available resources are to be divided by the different departments in the business (Nedelea & Paun, 2009, p. 98). The needs of the department are analyzed during the internal business environment analysis and the specific needs ascertained. It, therefore, becomes easy to allocate the resources efficiently and productively. The management also sets standards for the various departments and outlines the interdepartmental relationship among them for the sake of achieving a common goal. It is the duty of the management team to follow up and ensure that the departments operate within the provisions of the strategic management plan. One of the most outstanding challenges that can adversely affect the business and eventually lead it out of the industry is competition. It is, therefore, important for the...

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