Importance Of Strategic Management Commerce Essay

Importance Of strategicalal counselling Commerce EssayStrategic direction is a combination of art and science for formulation, implementation evaluation of decisions that enables an formation to achieve its goals objectives.Firstly, it assesses its competition in a market and then go bys goals strategies to satiate its competitors.Secondly, managers carry strategies to achieve the best performance of their company. An institution has an advantage if their profits rate is higher than their competitors.1.3 Value of Strategic chargeValue of strategic intend is obvious. The companies which intention strategically have a better pecuniary position in a society than those geological formations that dont. In todays world, Strategic planning is not only applied in the private sector scarcely also in government owned firms which include government departments, hospitals breedingal institutions. For example, increasing costs of university education, competition from various universities offering good education in less price reduction in student loans by banks student education funds by government etc and this had led many education providers to research and assess their universitys aspirations to find out a market niche in which they skunk prosper and after planning they hobo apply their strategies if set goals be achieved then its an effective strategy.2.0 Importance of Strategic ManagementThe importance of strategic focal point is discussed as followsStrategies make a difference in the performance of an organization.It helps managers to overcome challenging situations to cope with changeful environss.It indicates the need of changing making alteration in an organization (new shipway of thinking applying latest precautionary measures)Many organizations atomic number 18 made up of different divisions and departments that requires coordination with severally other, else there should be no focus on achieving goals of an organization.Its u seful for both profit based non-profit based organization.3.0 Components of delegatingary station avowalMission statement is the statement of the role by which an organization intends to reply its stakeholders. It describes why an organization is operating and thus provides a framework within which strategies ar get upd. It describes what the organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and what makes an organization uncomparable (i.e., resolve for existence).Once the mission statement is formulated, it serves the organization in long run, provided it may become ambiguous with organizational growth and innovations. In todays dynamic and warring environment, mission may need to be redefined. However, care must be taken that the redefined mission statement should have original rudiments/components. Mission statement has three important components-a statement of mission or vision of the company, a statement of the core values t hat shape the acts and behavior of the employees, and a statement of the goals and objectives.3.1 Features of a Mission StatementSome of its main points are discussed belowMission must be feasible and attainable. It should be possible to achieve it.Mission should be clear enough so that any action can be taken.It should be inspiring for the oversight, provide and society at grand.It should be precise enough, i.e., it should be neither in like manner broad nor too narrow.It should be unique and distinctive to leave an violation in everyones mind.It should be analytical,i.e., it should analyze the let out components of the strategy.It should be credible, i.e., all stakeholders should be able to believe it.4.0 The Individual locomote in the Strategic Management ProcessThere are 8 ill-treats of strategic caution process which are shown in the form of diagram and also these are explained belowFigure 1 CUsersacerDesktopSM.jpgStep 1It includes the Mission Statement, also it inclu des its features which have been discussed above in Components of Mission Statement.Step 2This step of strategic process is complete when management has an accurate cop of what is taking place in its environment and is aware of important trends that might affect its operations. This awareness is aided by environmental scanning activities and competitive intelligenceStep 3After analyzing and learning about the environment, management needs to evaluate what it has learned in terms of opportunities (strategic) that the organization can exploit and threats that the organization faces. In the simplest way, opportunities are positive external environmental factors and threats are negative ones.Keeping in mind that same environment can can present opportunities to one organization and pose threats to other in the same or a similar industry because of their different resources or a different focus.Step 4In this step,we croak from looking outside the organization to look inside..Thats we evaluate the organizations internal resources..This step forces management to recognize that every organization no matter how large and powerful, is constrained in some way by its resources and the skills it has available.Step 5Internal Resources or things that the organization does rise are its strengths. And these strengths represent the unique skills or resources that can determine the organisations competitive edge are its summation competences. And when an organization lacks certain resources we label its weaknessStep 6It includes the psychoanalysis and counter checking of Mission Statement.Step 7-How to Formulate StrategiesStrategies need to be set for all levels in the organization. Management needs to develop and evaluate choice strategies and then select a set that is compatible at each level and will allow the organization to best capitalize on its resources and the opportunities available in the environment.Step 8-Implementation of StrategiesThe last step of strategic management process is Implementation. No matter how good a strategic plan is, it cannot succeed it its not implemented properly. Top management leadership is a necessary ingredient in a successful strategy. And finally results must be evaluated.4.1 Strategic Management Avoiding Pit fallsIn strategic Management, a word SMARTER is used. Smarter is an acronym that can help organizations avoid a major pitfall in the development and implementation of strategic plansSpecificmensurableAcceptableRealisticTimeframeExtendingRewarding.4.2 Advantages Of Strategic ManagementThe advantages and benefits of undertaking Strategic Management in a systematic way include helping an organization toClearly define its purposeEstablish realistic goals and objectives consistent with its missionEnsure the effective use of resources by focusing on key prioritiesEstablish an mechanism for informed change when neededThe Individual Steps in a Strategic Management Process5.0 SWOT compendA combination of exter nal internal factors which results in an evaluation of opportunities that are provided by an organization. SWOT is an acronym of strengths, weaknesses, opportunities, threats. Basically SWOT Analysis is done oft in order to identify a strategic position that an organization can achieve easily to carefully evaluate the companys position as compared to its competitors. When SWOT analysis is done, the organization reviews its mission objectives. Also opportunities provided by an organization are reviewed, either its mission objectives are truly existent or not, they require any modifications or not, and where any other changes are needed. On the other hand, if no changes are obligatory, management is ready to actually formulate strategies.ConclusionThis assignment provides an overview of strategic management and strategy. Ideas about strategy cross many centuries, and modern understanding of strategy borrows from ancient strategies as well as classic military strategies. We shoul d now understand that there are numerous ways to conceptualize the idea of strategy and that effective strategic management is needed to ensure the long-term success of firms. The study of strategic management provides tools to in effect manage organizations, but it also involves the art of acute how and when to apply creative thinking. Knowledge of both the art and the science of strategic management is needed to help guide organizations as their strategies emerge and educate over time. Such tools will also help us effectively chart a course for our career as well as to understand the effective strategic management of the organizations for which we will work.