The fundamentals of a strategic management and planning in a business set up involves steps and procedures that managers and business leaders must follow and implement for the success of the business. Strategic planning and management allow people to understand business terminologies such vision, mission, goals, objectives and business’ both internal and external environment.
Primary components of the strategic management process
Analysis of the Competitive Position
In this first stage, business leaders acquire the basic and most fundamental of what is going on both internally and externally in the business institution. This is normally done by conducting a high-level analysis of the company. The aim and anticipation of the stakeholders are also put into consideration. Business external analysis entails the study of the market position of the company, considering its important competitors, on the other hand, an internal business environment covers the basic activities which are included in the formation of goods and services.
Upon the completion of analysis, the state of the company will be determined. In this stage the steps and methodology are determined based on resources and employee competencies, this will assist in knowing if the business will achieve and advantage, profit or loss by improving the standard of its goods or services.
The business goal is decided here, the program is placed on a platform where the important areas of the business watched keenly, the decision to remain in the same market, or try anew position, or to introduce a new product are decided here. The decisions made in this stage are based on whether the organization is going to gain more compared to its previous performance.
The final step here entails putting into practice the programs and procedures as decided by the business leaders. This is very vital to oversee the performance of the various departments and get a better understanding of the business operation and determine where the strategies will need to be modified or corrected.
Business internal and external environment analysis
Internal factors are considered micro and are discussed within the institution, these are factor the business have control and can turn to be strength or weaknesses. Steps can be formulated to capitalize the strength and get ways to tackle the negative effects.
External business factors are the conditions outside the business control and includes competition, government law and state of the economy, a good business leader should learn what potential competitors are implementing and decide if it can gain insight in relation to customer needs and expectations (Kimberlee Leonard 2019). Important new laws and business regulations may affect product production, its sales and distribution. A consumer community, political inclination and economic landscape in relation to taste and preferences usually have vital impacts on a business performance.
Upon the determination of a business internal and external factors, a strategic plan must be formulated on how to respond to competition and reduce both internal and external threats.
Responsibilities and duties of a strategic manager
Strategic leaders’ main focus is to achieve a business target particularly by dealing with customer satisfaction, managing competition and studying the market trend. These mangers ensure that their plans are in relation with the companies’ objectives and expectations. Some of the duties of a strategic manger include;
Projects that aid the company to achieve success are handled by the strategist. They include projects that shows opportunities, initiatives set for maximum output while reducing cost. A strategic planner cooperates with other managers to implement projects (Tara Duggan). Through project evaluation, publications making reviews, the strategic planner helps the company to make priorities.
A strategic planner insists on having the best manpower to execute the plan, he ensures correct use of company resources and study trends that relate with the strategic goals. A strategic manager ensures cost saving while maintaining maximum output by ensuring correct allocation of resources.
Company project managers have duty of sharing tips, methodology and techniques to the other managers with an aim to improve quality. The manager also convenes meeting with stakeholders to determine project requirements and make the concur with institutions’ strategic goals.
Project tools assessment
Project managers evaluate techniques and tools that the organization uses to manage its projects. They help in ensuring data integrity and maintain consistency in the business operation.
Importance of strategic management and planning in a business
Management and planning provide a clear outlook on where the business is and where it wants to be, quantitative objectives are designed to determined if the business is proceeding as programmed or moving in the wrong direction. (Devra Gartenstein & co 2018)
Long term objectives of a business strategy guides business leaders to focus on visions while short term objectives allow them to make increasing steps in the best direction.
Strategic planning as a team brings people together and motivates them to work with a common goal, it makes it easier to stay on track and give a shared sense of purpose and gauge the progress and performance of the company.
Kimberlee Leornard. (2019). The Need for Strategic Planning for Project Management. Using the Project Management Maturity Model, Third Edition, 1-19.doi: 10.1002/9781119559078.ch1
Tonelli, M., Cristoni, N., & Devra Gartenstein. (2018). Introducing the CE Strategic Process. Strategic Management and the Circular Economy, 113-125. doi:10.4324/9781315102641-9
Tara Duggan. (2015). Advances in Strategic Management. Advances in Strategic Management, ii. doi:10.1108/s0742-332220150000033015
April Congrejo. (2008). Fundamentals of Strategic Management’ 2007 Ed. Manila: Rex Bookstore