The strategic management is a process that systematically evaluates a business, defines its long-term objectives, develops strategies and identify goals to achieve them and at the same time find the corresponding resources to perform them.
The process of this administration, which is dynamic by nature, is made up of a set of decisions, commitments and acts that the organization requires so that it can achieve strategic competitiveness and thus obtain profits that are higher than the average.
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It can be defined as the science that formulates, implements and evaluates all the decisions that can allow the linking of the objectives of a company. It is an administration that focuses on the integration of administration, finance, production, operations, accounting, the development of research, information systems and marketing to favor the business.
In this article you will find:
Characteristics of strategic management
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Among its characteristics the following can be distinguished:
- Formulate and implement different strategies in the company.
- It is responsible for providing competitive advantages.
- Observe the internal and external aspects of the company.
- Sets the mission, view and the Business values.
- He is in charge of making the situational analyzes of the company.
Objectives of strategic management
A company focuses on its objectives that it wants to achieve and that is why to achieve it there is the intuition that risk implies, since it does not direct the concrete actions and strategy that are based on the goals, which are given an execution period in order to see if it becomes successful or not.
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For strategies to be successful, plans must be designed and evaluated accordingly. That way you can get a feedback constant of what is being implemented and the impact of the actions carried out.
Achieving the objectives of a company will depend on the products and services offered, so that they can reach the competitive level and for this a effective strategy and an efficient plan of action.
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Benefits of strategic management
One of the greatest benefits of this type of administration in companies is that they have the best strategies, since they use a systematic, rational and logical approach to be able to make a good selection of their strategies. Other important benefits include:
- It makes it easy to detect opportunities and classify them by priority in order to exploit them.
- It allows to have a fair view of administrative problems.
- It contains a coordination framework to control activities efficiently.
- It favors a positive attitude in case of changes.
- Facilitates the improvement of resource allocations.
- It offers formality before the administration of the businesses.
- Stimulate and incorporate people's behavior for greater effort.
- Reduces the consequences of adverse changes.
- Provides a basis for the purpose of delimiting responsibilities individually.
Elements of strategic management
For an administration to develop efficiently, the following elements must be taken into account:
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Environmental analysis
It is about the recognition of the strengths and weaknesses of the company in various areas such as the industrial and social environment in conjunction with its resources, structure and culture. This step performs a process that has the ability to collect all kinds of information. You must be autocratic when you recognize weaknesses, otherwise the analysis would not be accurate.
Formulating the strategy
It has the objectives, the politics, the reasons and strategies for the company to work. All this implies the definition of the necessary results and the planning of everything achieved.
The implementation of the strategies
It refers to the development of the plan designed in the previous step and for this it is based on those programs that have the activities to be executed, the budget and the process that must be followed.
Evaluation and control
Consideration should be given to the use of the various monitoring tools for all performance, so that can establish if the company is on the right path or if some corrections.
Ethical and social dimensions of strategic management
According to the attitude towards the strategic plan, the following organizations can be distinguished:
- Defenders: They are those that have a reduced scope of the market for their products, where their top managers They are highly efficient in this operational area, but they do not seek other opportunities that are outside their ambit.
- Scouts: They are continually searching for market opportunities and mostly experiment with potential responses to environmental trends.
- Analyzers: They tend to operate in two areas, one that is relatively stable and the other that is changeable.
- Respondent: In these, administrators mostly look at the changes and uncertainties that could affect the environment of their company.
Importance of strategic management
East type of administration in companies is very important, this is because you can define where you have to go. Has the ability to make different decisions that give value to the company and also ensure the well-being and survival of the same to long term.
In the same way, it efficiently complies with the establishment of the factors that define the company as follows:
- Diversification decisions.
- How and in what market does the company have to compete.
- Organizational structure.
- What are the steps you need to take in the short and long term.
The strategic management is responsible for defining what are the objectives and goals in the short and long term, what is its mission, vision and strategy that must be followed in the company. In general, it is a very useful tool when making a situational analysis or make decisions that allow the company to have an effective development to achieve the success of the herself.
