Strategic Management

The term strategic management refers to a composition or somewhat set of managerial decisions and actions which are geared toward the formulation, implementation and efficient strategizing of the company's objectives and plans for the realization of the long-term performance. As a result of the uncertainty and complexity of the business environment, there is a need for analysis and comprehension of the business environment so that the mission, vision, and objectives of the firm are harmonized in a manner that enhances and maintains the profitability of the firm. Managers must then be able to understand the strategic position of the organization, by scanning the environment to make appropriate strategic choices. The decision making the process at these stages ensures that strategies are turned into action through implementation, putting into consideration the need for monitoring and evaluation so that all the sources of performance information are revised and improved for the betterment of the organization’s performance and profitability. This paper will look into the concepts and components of strategic management, by discussing various units in detail, including goal setting, formulation, implementation, evaluation and control and feedback. It will also address the characteristics and importance of the strategic management.

Body

Strategic management is a continuous process that involves the analysis, examination, and review of the various decisions of the business before the action of implementation is carried out (Appannaiah, Narayana, & Ramanath, 2009). It takes into full account the need to recognize and utilize the concept of strategic planning; that means the ability of the organization to set and prioritize goals and objectives that will influence both the actions and decisions with a clear aim of achieving the desired results. For a complete and logical outcome of the process, strategic management must ensure that the following factors are appropriately digested well; the administration must be able to analyze both the internal and external weaknesses and strengths of the organization. The top prefects should as well be able to come up with action plans and logical channels through which such projects are executed (Aragón-Sánchez, & Sánchez-Marín, 2005). Again, they must be able to put in place necessary tools for the evaluation process to ensure that the firm does not fail to meet its long-term objectives.

Strategic management entails several stages which are interlinked in a manner that demands that everyone within the business understands and comprehends them adequately for the strategies to be successful (Calpin-Davies, 2001). The first stage is the process of goal setting. It is composed of identification of objectives, both the long-term and short-term, and the techniques through which the accomplishment will be done. It also requires that the staff is customized to the process and objectives by assigning tasks relevant to one's capability. Moreover, at this stage, there is need to prepare and write a mission statement that unequivocally communicates and reflects the goals of the firm to everyone (Chen, 2001). The management relies upon the environmental dynamics, the capability of the organization, and the expectations of the stakeholders so that it can make a proper understanding of the strategic position of the organization.

The next component is the analysis stage, which involves the gathering of information and data that are commensurate with the mission and vision of the organization (David, 2005). The analysis should be pivoted on comprehending the needs and expectations of the business' sustenance and growth. The management must examine both the internal and external issues which may affect the outcome of the organization (Flanigan, 2016). The process involves paying keen attention to the strengths and weaknesses, identification of opportunities and threats that can arise along the path of the business. The strategic decision making becomes a fundamental agent of growth at this stage. The strategies may include; a corporate level strategy which is concerned with the provision of the overall direction and value addition to the firm (Godet, 1989). Similarly, there is a business level strategy, which considers the competitive strength of the organization in a particular market, and also the practical strategy which looks into finance, marketing, research, and development framework of the organization (Jenkins, 2016).

The next phase, after analysis, is the formulation and implementation stage. The process begins by reviewing the information obtained from the study (Johnsen, 2015). The management determines the current position of the organization regarding resources and prioritization plan for the achievement of the goals. During the formulation stage, the managers must take into account the fluid nature of the business and economic environment hence they must develop alternative approaches for every target plan. Once the formulation process is complete, the next move is the turning of the strategies into action (Maier & Remus, 2002). The implementation stage thus involves resource planning, where there is need to match resources with opportunities. Also, there is system management under which competent human resources are acquired, developed and utilized for the organization's fulfillment of goals. Additionally, there is structure design, where the administration produces a synchronized framework for reporting relationships, the span of control, and chain of command (Malewska, & Sajdak, 2014).

The following level of strategic management is the evaluation and control segment. The stage involves measurement of performance, review, and restructuring of internal and external needs and issues and development of corrective plans (Meltzer, 1983). The process begins with the definition of parameters under analysis, determination of the progress through measuring of actual results against the laid down procedures. Monitoring and evaluation assist the management to react to any substantial change in the business environment correctly (Pegels & Yang, 2000). It is essential for the managers to store any data or rather information acquired at this stage since there will be a future need for reference and revision of strategies concerning the consistently evolving environment (Jeyarathmm, 2008). Finally, the feedback gathered from the precedent phase is assessed to ascertain the overall performance of the firm; if the actions achieve little or no result, then the whole strategic process is reviewed and new plans erected forthwith (Rahman, Rahman, & Ahmed, 2014).

Strategic management is very vital to the success of any business for some reasons; it promotes participant management and empowering employees by way of interaction at all the various levels of the organization (Saloner, Shepard, & Podolny, 2011). Also, it enhances problem identification and prevention capabilities at the early stages thus leading to a successful implementation program. Besides, through group interaction, there is improved strategic choices and options that the management can utilize to achieve the goals of the organization (Trkman, Mertens, Viaene, & Gemmel, 2015). Likewise, as a result of performance reward strategies, there is improved productivity and goal-oriented behavior. There is as well reduced gaps and overlaps in the resource allocation process since the process involves an integrated approach where rules and responsibilities are stated and specified (Vaghefi, & Huellmantel, 1999).

In summary, strategic management is a process that requires flexibility in the decision-making process for faster adaptation to a dynamic environment (Ansoff, 2014). It also considers the role of integration process as an essential tool in marching goals and objectives alongside the external and internal aspects of the institution (Birkinshaw, 2004). Similarly, the idea of dynamism brings in the need for speed in the accessing and addressing critical institutional affairs so that there is improved pace in rolling out actions (Choo, & Bontis, 2002). Strategic management also takes into account creativity and innovation through the framing of new strategic plans to cater for an ever-changing surrounding. On the same note, it allows for the establishment of long-term planning and guidelines through which such methods are implemented for the success of the organization (Garlichs, 2011).

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