Strategic planning is the process carried out by an organization to define its direction and making decisions on supply allocation to chase its strategy. The strategy explains in what way the end goals will be achieved and through what means. A strategy involves setting objectives and laying down a well-defined path on how to attain those objectives through resource allocations and implementation of actions. Strategic management comprises charting out a clear distinct map on goal achieving by specifying the company’s objectives, developing plans and policies, allocating resources to implement the plans.
Components of the Strategic Management Process
This is a process that happens, in order to evaluate the company and its direction. This is the process through which directors decide on a specific approach that can be used to improve enactment in an organization. The process has four steps. The first one is environmental examining. This entails decisions solely focused on strategy. It entails gathering, providing information, and analyzing information for the strategy. It assists in evaluating the external and internal factors influencing the company. Once conducted, the procedure should be visited frequently to try and improve it. Secondly we have strategy creation. With the relevant information gathered up, a particular direction that best suits the strategy is then picked and followed. Here executives frame the business, and practical strategies. Thirdly, strategic implementation comes in place. This means placing the specific chosen approach into action. This phase involves nurturing policymaking process, planning the establishment’s makeup, spreading of resources, and managing human resources. Finally we have strategy evaluation. Here, the strategy is verified as to whether its employment assembles the company’s objectives. Its main activities are: measuring performance, taking corrective measures, and evaluating internal and external factors that are the source of present policies.
Internal and External Analysis
Internal analysis concentrates on the factors inside an organization that are either advantages or disadvantages in meeting the needs and goals of that organization and its target market. Advantages are those factors that deliver the company assets in meeting the needs of its marketplace. These should be client-oriented since they are useful when they assist the firm in meeting customer desires. Weaknesses, on the other hand, refer to the limitations an organization experiences in implementing or developing a strategy. These should also be examined and dealt with to keep the strategy firm (Rowe, J A, 1993).
The external analysis focuses on threats and prospects in a firm’s external environment. Opportunities bring favorable conditions to implement the company’s strategy to customers and consumers. Weaknesses bring with them the opposite: reduced sales, poor interaction, and poor sales. These are issues that can be spoken on to improve the external business approach.
Duties and Responsibilities of the Strategic Manager
The strategic manager’s exclusive role is to achieve business results. He/she achieves this by project portfolio administration, resource portfolio management, project mentoring programs, and project organization of tool valuation. He/she handles projects that contribute to a firm’s success in developing new products, fixing problems and launching initiatives designed to cub wastage and losses. He/she guarantees that the best personnel up for the tasks manage resources effectively. Also, those managers with more experience get to mentor those with less experience. Through sharing of ideas and tips, improvement of quality in results might be achieved. A manager evaluating the techniques and tools used by organizations to manage projects assures data integrity, consistency in the company, and proper scheduling.
Importance of Strategic Management Planning in Companies
Strategic planning provides a sense of direction and measurable goals for an organization. It helps a company define its strategic management. This helps drive the firm’s growth over proper management methods focused on setting goals. Some qualities of an effective organization are good management, effective leadership, and open communications. By setting this up, making changes when needed is effective and easy. When it comes to setting goals, nothing achieves the task better than a well-thought plan. By focusing on the goal, the firm benefits unison in movement. This keeps the company motivated on future success (Sadler, 2003).