Strategicplanning is the process carried out by an organization to define its directionand making decisions on supply allocation to chase its strategy. The strategyexplains in what way the end goals will be achieved and through what means. Astrategy involves setting objectives and laying down a well-defined path on howto attain those objectives through resource allocations and implementation ofactions. Strategic management comprises charting out a clear distinct map ongoal achieving by specifying the company’s objectives, developing plans andpolicies, allocating resources to implement the plans. Componentsof the Strategic Management Process This is a process that happens,in order to evaluate the company and its direction. This is the process throughwhich directors decide on a specific approach that can be used to improve enactmentin an organization.
The process has four steps. The first one is environmental examining.This entails decisions solely focused on strategy. It entails gathering,providing information, and analyzing information for the strategy. It assistsin evaluating the external and internal factors influencing the company. Onceconducted, the procedure should be visited frequently to try and improve it.
Secondlywe have strategy creation. With the relevant information gathered up, aparticular direction that best suits the strategy is then picked and followed.Here executives frame the business, and practical strategies. Thirdly,strategic implementation comes in place. This means placing the specific chosenapproach into action.
This phase involves nurturing policymaking process, planningthe establishment’s makeup, spreading of resources, and managing humanresources. Finally we have strategy evaluation. Here, the strategy is verifiedas to whether its employment assembles the company’s objectives. Its mainactivities are: measuring performance, taking corrective measures, and evaluatinginternal and external factors that are the source of present policies.Internaland External AnalysisInternalanalysis concentrates on the factors inside an organization that are eitheradvantages or disadvantages in meeting the needs and goals of that organizationand its target market. Advantages are those factors that deliver the company assetsin meeting the needs of its marketplace.
These should be client-oriented sincethey are useful when they assist the firm in meeting customer desires.Weaknesses, on the other hand, refer to the limitations an organizationexperiences in implementing or developing a strategy. These should also beexamined and dealt with to keep the strategy firm (Rowe, J A, 1993).Theexternal analysis focuses on threats and prospects in a firm’s externalenvironment. Opportunities bring favorable conditions to implement thecompany’s strategy to customers and consumers.
Weaknesses bring with them theopposite: reduced sales, poor interaction, and poor sales. These are issuesthat can be spoken on to improve the external business approach.Dutiesand Responsibilities of the Strategic ManagerThestrategic manager’s exclusive role is to achieve business results. He/sheachieves this by project portfolio administration, resource portfoliomanagement, project mentoring programs, and project organization of tool valuation.He/she handles projects that contribute to a firm’s success in developing newproducts, fixing problems and launching initiatives designed to cub wastage andlosses.
He/she guarantees that the best personnel up for the tasks manageresources effectively. Also, those managers with more experience get to mentorthose with less experience. Through sharing of ideas and tips, improvement ofquality in results might be achieved.
A manager evaluating the techniques andtools used by organizations to manage projects assures data integrity,consistency in the company, and proper scheduling.Importanceof Strategic Management Planning in CompaniesStrategicplanning provides a sense of direction and measurable goals for anorganization. It helps a company define its strategic management. This helpsdrive the firm’s growth over proper management methods focused on settinggoals. Some qualities of an effective organization are good management,effective leadership, and open communications. By setting this up, makingchanges when needed is effective and easy. When it comes to setting goals, nothingachieves the task better than a well-thought plan. By focusing on the goal, thefirm benefits unison in movement.
This keeps the company motivated on futuresuccess (Sadler, 2003).