The Basics of Company Strategic Management

Strategic management is a system that can be employed by any company regardless of its industry. It aids in the development and implement business goals. It assists companies in analyzing areas for improvement in their operations and develop strategies to achieve their desired results. The approach can be prescriptive, where specific procedures are outlined for the development of goals and their implementation or descriptive, where general guidelines are laid out.

To establish business goals, the first step in establishing a strategic management plan for a company is to examine external and internal factors that could impact its operations. This is a process of analyzing internal and external factors that could affect the company’s operations as well as setting goals for business to aid in decision-making. These goals are usually communicated to all departments and can be implemented.

After the business goals have been set, the initial year’s goals must be established to ensure they align with the board management control strategic goals. These yearly objectives should be broken down into key outcomes and KPIs which are quantifiable, actionable and can be tied back to the overall strategy.

The next stage is monitoring and evaluating. In this phase the company will review its progress toward achieving its business goals and determine if any changes must be implemented to the strategic management process. This could mean rethinking the business model, eliminating strategies that are ineffective and continuing to monitor the external environment as well as internal operations for any possible changes. This can aid in the development of effective strategies to deal with competitive threats and market opportunities. It can also help improve the communication between team members and create a plan to overcome obstacles that may make it difficult to achieve the strategic goals.