Strategic Planning and Strategic Management

Strategic Planning and Strategic Management
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Strategic Planning and Strategic ManagementIntroduction
Strategic planning refers to management that an industry undertakes to ensure that employees and other stakeholders are working with similar goals. The paper discusses the main components regarding the strategic management process. It also explains both the internal and external analysis and how they are essential to the business. Furthermore, the paper defines and outlines the duties of strategic managers. It further explains the importance of planning for the company.
Primary Components of the Strategic Management Process
Strategy formulation refers to the process by which the company identifies and decides on the best actions to undertake to achieve its goals and objectives. The method offers a framework for better operations that anticipates to appropriate results to enable the success of an organization. For example, improving the quality of the product as well as reducing the prices of the commodities (Preble, 2017). Besides, the strategy formulation prepares a company for any possible changes that might occur. The plan also enables the industry to evaluate its resources and create an appropriate budget allocation that will, in turn, improve the return on improvements (ROI). It is essential to communicate strategic plan to all employees so that they are aware of the mission and objectives of the firm. In fact, a company without the program fails to provide its employees with a suitable direction.

Strategic development involves deciding on the parts that the business is likely to be affected. As a result, the firm plans and decides on various factors to influence its success. For instance, it determines on whether to introduce a new commodity to the market (Preble, 2017). Again, it decides on how to adjust the market by the use of the same product. Additionally, it will examine whether the diversification of the market and the product will result in the satisfaction of the company.
Competitive position analysis involves examining and assessing whatever is happening within and outside the business. There is a necessity to introduce SWOT analysis to achieve the internal and external understanding of the market. The internal study will include the creation of appropriate goods and services while the external evaluation will involve the entire markets and the competitors surrounding the company.
Strategic implementation entails addressing who, where and how to achieve the desired aims of the business. It concentrates on the whole structure of the industry. However, the implementation begins immediately after SWOT analyses, and environmental scans have taken place. The application monitors the progress of the business as well as identifying the various responses from stakeholders.
Internal and External Analysis
Internal analysis refers to an aspect of studying the internal factors that are likely to affect the business. Therefore, the industry is responsible for taking the full control over such internal factors. Some of the interior factors that influence the performance of the company include the employees, the business culture, the resources among many others. The external analysis refers to the study of how factors that are not within the business influence the market. However, some domestic elements are beyond the company’s control. Such factors are the political, demographic, and the competitive environment (Mayhew & Winer, 2016).
Responsibilities and Duties of the Strategic Manager
Managers have several duties to perform for a business to run smoothly. Their primary focus is usually achieving the best outcomes for the company. Firstly, he/she is responsible for handling all events that are necessary towards the attainments of the company’s objectives. It involves formulating better plans that are likely to lower the cost and increase the profits. The strategic manager is also responsible for defining the identity of the company. Therefore, he/she has to scale down the uniqueness of the firm through focusing on the products. More so, the strategic managers have the mandates of creating achievable goals for the company. It means that the goals should be realistic and time-bound. The managers are responsible for widening the markets by linking with many customers as possible. Therefore, they should have local and international connections to reach as many clients as possible (Lantos, 2017).
Why Companies Need Strategic Management Planning
There are various reasons as to why a company should require a strategic management planning. Firstly, it helps the company to offer first opportunities to the most critical activities regarding business. It means that first things are done first. As a result, the managers can provide and set a clear direction for the company. Planning in the business ensures that there is a proper distribution of workers with their respective works. Therefore, each employee is aware of his/her roles in the company. In the event, the workers work with a similar aim of achieving the firm’s objectives. Furthermore, planning gives an outline containing the order by which the activities will follow. In fact, it ensures that there no repetition or omissions of any event. Additionally, strategic planning encourages proper communication strategies among the managers, employees, and the clients. Hence, it creates a solid background that allows healthy interactions across all employees (Somers & Nelson, 2015).
In conclusion, various components are essential in the strategic management process. Examples of such elements include Strategy formulation, Strategic development, Strategic implementation, and Competitive position analysis. The above components are crucial since they enable the business to thrive and attain its goals. Besides, the company should be well acquainted with an idea for internal and external analysis. Such thoughts are vital because the managers can assess the internal and external factors that influence the business. Strategic managers have several duties towards the success of the company. Therefore, each manager should learn and understand their responsibilities appropriately. In case they face difficulties, they should seek further clarities. Finally, business requires strategic planning to reach their aims. The company’s fraternity must scale down a plan that is effective to the market.
References
Lantos, G. P. (2017). The boundaries of strategic corporate social responsibility. Journal of consumer marketing, 18(7), 595-632.
Mayhew, G. E., & Winer, R. S. (2016). An empirical analysis of internal and external reference prices using scanner data. Journal of consumer Research, 19(1), 62-70.
Preble, J. F. (2017). Integrating the crisis management perspective into the strategic management process. Journal of Management Studies, 34(5), 769-791.
Somers, T. M., & Nelson, K. (2015). The impact of critical success factors across the stages of enterprise resource planning implementations. In System Sciences, 2001. Proceedings of the 34th Annual Hawaii International Conference on (pp. 10-pp). IEEE.