How Is Strategic Management Relevant And Important
How Is Strategic Management Is Relevant And Importantstrategic Managem
How is strategic management is relevant and important Strategic management is important for the success of an organization. Strategic management provides direction by creating and/or developing plans or a road map to achieve goals. By providing direction strategic management also creates policies that will cater to achieving the goals. Why is strategic management relevant and important. Strategic management is relevant and very important because it will help organizations gain a competitive edge or advantage over other organizations within the field and/or market.
A successful strategic management will keep the organization ahead and will always set new trends that have not been done before by other organizations. Strategic management is also important and relevant to an organization because it entails evaluating the business goals, organization’s or company’s vision and future plans. Strategic management overall assist with the business operating effectively and efficiently. Is strategic management relevant and/or important. As stated above, strategic management is very important to the overall operation and success of the organization.
Strategic management can assist the organization to navigate through economic hardships and as well as keeping the organization successful. Strategic management involves many areas such as: innovating thinking, planning process and operational strategizing. Strategic management wholly, is important for everyone involved, from the lowest to highest levels, to work towards the same goal: success of the company. Successful strategic management also assist the business profit. With proper planning, forward thinking, identifying strengths as well as weaknesses, resource allocation and most importantly: environmental impact the organization’s strategic management will lead the company to success that will always be one step ahead of it’s competitors.
Strategic management is crucial to the operation, sustainability, and success of businesses. The objective of strategic management is to better align corporate policies and strategic priorities to create cohesion and understanding in order to obtain best management practices (Dool, 2020). Strategic management provides direction by creating and/or developing plans or a road map to achieve goals. By providing such direction, strategic management can create policies that will cater to achieving company goals. Strategic management consists of a variety of different subfactors that are relevant to all businesses.
Strategic management is also important and relevant to an organization because it entails evaluating the business goals, organization’s or company’s vision and future plans. In order for a company to achieve its objectives, it has to create a vision and mission statement so that all involved in the company have a clear understanding of the overall goal of the company. A vision statement describes what the company hopes for in the future, while a mission statement states the company’s reason for existing (Dool, 2020). Without a clear vision and mission, employees and management within the company may strive towards differing end goals which can create tension, misrepresentation of the company, and even lost business if clients, customers, and partners find the company disorganized.
Strategic management involves many areas such as: innovating thinking, planning process, and operational strategizing. Strategic management is important for everyone involved from the lowest to highest levels to work towards the same goal: success of the company. A strategic plan can be an essential part of becoming and maintaining a successful business. It contains a set of steps that a company uses to be successful and gain a competitive advantage over its competition (Dool, 2020). From an organizational perspective, it helps align employees to create cohesion and understanding among each person’s purpose.
From a leadership perspective, it can help guide management into making business decisions for growth. The company I work for, Oasis Systems, LLC, acquired two companies within the past 4 years. With such an exponential amount of growth, there was obvious change within the organization to accommodate for a large number of additional employees. While the leadership team did a great job at organizing the company to keep up with growth, it wanted to create a survey team to interview all the indirect employees within the company to learn about employees’ opinions, complaints, and hopes for added resources within the company before the company grew any further. The company was proactive by giving the opportunity for employees to voice their opinions while the company is doing well, rather than waiting for people to feel neglected or unhappy in the new work environment.
Oasis’ vision and mission is to create and attract talented individuals in order to meet the needs of its customer, the U.S. Government, to help it achieve its missions. By creating a strategic plan to better accom employees and create a more desirable company, it set itself up for success to fix common issues mentioned by employees and add additional benefits and perks to the company that would entice new employees to join the company. A well-thought out and thorough strategic management process addresses internal and external factors that may affect the company. Internal factors look within the company and include trends in the company, financial strength, improvement in internal processes, and changes within the company (University of Maryland Global Campus, 2020A).
By being aware of the company’s internal resources, it can also better address its strengths and weaknesses that could be used to its advantage or disadvantage. With proper planning, forward thinking, identifying strengths as well as weaknesses, resource allocation and environmental impact the organization’s strategic management should lead the company to success. In addition, companies also must analyze external factors that could influence the company’s success. Such factors would include aspects outside of the company’s control such as the economy, legislation, or physical environment (University of Maryland Global Campus, 2020B). Understanding and anticipating external factors can aid leadership in navigating potential opportunities or threats that could help or hinder the company.
Successful strategic management will aim to keep the organization ahead and will always set new trends that have not been done before by other organizations. Strategic management’s relevancy or importance should not be argued because it is essential to any functioning, successful business. Without an objective, cohesive leadership, and a strategic plan, most companies would fail to exist. By using strategic management, companies can become more unified towards a common goal, and therefore, create a competitive advantage that aids the company in becoming successful overall.
References
- Dool, R. (2020). Week 1 lecture: Strategy. University of Maryland Global Campus.
- University of Maryland Global Campus. (2020A). MGMT 670: Week 3 lecture.
- University of Maryland Global Campus. (2020B). Week 5 lecture: External factors.