The fundamentals of strategic management and planning in a business set up involve steps and procedures that managers and business leaders must follow and implement for the success of the business (Butuner, 2016). 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 primary and most fundamental of what is going on both internally and externally in the business institution. This is usually 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 essential competitors. On the other hand, an internal business environment covers the underlying activities which are included in the formation of goods and services (Wheelen, Hunger, Hoffman & Bamford, 2017).
Upon the completion of the analysis, the state of the company will be predetermined. 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 an advantage, profit or loss by improving the standard of its goods or services.
The business goal is determined here, and the program is put on a platform where the essential areas of the business watched keenly, the decision to remain in the same market, or try a new position, or to introduce a new product is in here (Wheelen et al., 2017). 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 have impacts within the institution; these are the factor the business has control and can turn to be strength or weaknesses. Steps can be formulated to capitalize on the advantage and get ways to tackle the adverse effects.
External business factors are the conditions outside the business control and include 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 concerning customer needs and expectations (Cassidy, 2016). Important new laws and business regulations may affect product production, and it’s sales and distribution. A consumer community, political inclination and economic landscape with taste and preferences usually have essential impacts on business performance.
Upon the determination of a business internal and external factors, a strategic plan must be 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 managers ensure that their plans are with the companies’ objectives and expectations. Some of the duties of a strategic manager include;
The strategist handles projects that aid the company to achieve success. They include projects that show opportunities, initiatives set for maximum output while reducing cost. A strategic planner cooperates with other managers to implement plans. Through project evaluation, publications doing reviews, the strategic planner helps the company to make priorities.
A strategic planner insists on having the best workforce to execute the plan, and he ensures the correct use of company resources and study trends that relate to the strategic goals (Butuner, 2016). A strategic manager provides cost saving while maintaining maximum output by ensuring the proper allocation of resources.
Company project managers have the duty of sharing tips, methodology, and techniques to the other managers 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 bright outlook on where the company is and where it wants to be, quantitative objectives are designed to determine if the business is proceeding as programmed or moving in the wrong direction.
Long term objectives of a business strategy guide business leaders to focus on visions while short term objectives allow them to make increasing steps in the best direction (Morden, 2016).
Strategic planning as a team brings people together and motivates them to work with a common goal, and it makes it easier to stay on track and give a shared sense of purpose and gauge the progress and performance of the company.
Butuner, H. (2016). Case studies in strategic planning. Auerbach Publications.
Cassidy, A. (2016). A practical guide to information systems strategic planning. Auerbach Publications.
Morden, T. (2016). Principles of strategic management. Routledge.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy (p. 55). Boston: pearson.