Strategic management is whereby general managers take initiative on behalf of the business owner, making the best use of available resources to improve company performance in their market. The process involves identifying the mission, vision and objectives of an organisation and then, deploying resources accordingly in order to effectively implement these plans.
In order to measure whether an organisation is taking sufficient steps in order to reach its objectives, a device known as a balanced scorecard is used to evaluate company performance. The concept of strategic marketing is closely linked to the field of organisation studies. This means that strategies can be deployed by both the management team, board of directors and relevant stakeholders. The way in which it is undertaken depends upon the organisational structure of the business.
A strategy can be formed by both large corporations and small businesses, but the ways in which they adopt strategic management will vary to a certain degree. The first step in the process is to generate and distribute a mission statement. This is an important document which stipulates the reason for the organisation and specifies the activities and markets that the company is interested in. Strategic formation After the mission statement is complete, the organisation would begin a strategic formation which consists of three main processes which will assist the organisation make strategic decisions. Undertake a thorough analysis of the current situation in terms of markets, the organisation would undergo a self evaluation and competitors would be evaluated. Once the information from the above process has been collected, the data would then need collating and analysing. From here, an organisation is then able to set their main objectives, consisting of both long term and short term goals. Within these objectives, the following should be specified: -Vision statement: Future outlook for the organisation -Mission statement:The role of the organisation within society -Corporate objectives to cover both financial and strategic aspects -Strategic business unit objectives -Tactical objectives.
By undertaking an ‘environmental scan’, the organisation will be able to identify strategic change and significant factors which will influence the organisation. It will provide information about which areas in which to capitalise upon, and also highlight other areas which may have a detrimental effect upon an organisation.