An Overview of Strategic Management

Every organization aims to perform at its best and achieve the established goals and objectives. Developing a strategy within the company becomes a crucial tool to respond to the current situation and generate potential measures required to reach the desired performance indicators. The article offers numerous strategy definitions provided by scholars and proposes a new explanation of a business strategy. In such a way, a novel description states that it is “a plan of actions that one uses to formulate goals and objectives and the means of achieving” them (Athapaththu, 2016, p. 125). The purpose of this paper is to analyze the company’s strategic statement and to align it with various definitions of the strategy concept.

First, it is critical to understand the direction in which the organization is moving and how it is planning to get there. Conducting a strategic planning process becomes the essence of generating the strategy that the company will pursue. The significant steps outlining the course of required actions include identifying the vision and mission, designing the SWOT analysis, gap analysis, benchmarking, determining strategic issues, and programming (Athapaththu, 2016). Hence, those steps can substantially contribute to creating a robust strategic statement and highlight the most crucial aspects of the business operations. It is also vital to remember to evaluate the implemented measures and review the process to have an opportunity to implement necessary adjustments and improvements (Athapaththu, 2016). Consequently, strategic planning steps create a firm foundation for the organization to integrate indispensable methods and procedures.

Another significant step is adopting strategic thinking, which will be an influential tool in designing the rational and promising process of implementing the changes. The article suggests that strategic thinking can be a part of the planning stage, and is essential separately as well to act based on “the assumptions and anticipated action alternatives” (Athapaththu, 2016, p. 126). Thus, applying creativity and intuition are the subtantial characteristics of the management team before moving to generate the steps to develop the strategy. As a result, strategic thinking can provide new insights for the organization’s leaders, propose unique alternatives for the team, and positively influence the culture.

The company’s strategic statement can be identified as efficient utilization of the existing resources and the introduction of new incentives for the employees to enhance the performance and maintain sustainable development and growth. It is possible to say that this can be attributed to different scholars’ definitions. For instance, Chandler’s explanation involves the determination of long-term goals and the proper allocation of the resources (Athapaththu, 2016). The company also considers the assets that it possesses and focuses on finding the most effective ways to use them. Besides, long-term oriented objectives also implicate further business’ development and its ability to sustain the achieved progress. Hence, the current strategic statement is connected to the definition given several decades ago, which highlights the significance of those factors in strategic management.

It is also essential to mention Porter’s characterization of the strategy. The scholar stated that it is based on competition and that adopting an effective tactic can help an organization to show excellent results among the competitors (Athapaththu, 2016). One can claim that the current company’s strategic statement also reckons in the rivalry. The fact that it mentions sustainable development and growth implicates that the business is overcoming the competition and is managing to expand. It also means that the company is operating successfully within the industry and has the potential to improve its value and image. Thus, the business applies Porter’s explanations of the strategy’s essence.

The article provides another definition proposed by Drucker, which also clearly illustrates the necessity of strategic management. The explanation suggests that the strategy involves the analysis of the current situation and the integration of changes if necessary (Athapaththu, 2016). The company’s outline of the tactic takes into consideration those factors by emphasizing the focus on the efficiency in resources’ utilization and on growth. It would be impossible to generate effective measures for the enhancement without a thorough analysis and evaluation of the present position. Moreover, the assessment of the current conditions points out if any changes are required, which also can be seen through the focus on sustainable development. If for the moment, the business is in the plateau stage, it is critical to implement the modifications.

In conclusion, it is possible to say that various strategy definitions carry out the essence of successful business management and emphasize the necessity of the analytical skills and the significance of remembering about competition. Besides, it is essential to think through the evaluation plan before adopting new measures, because it can be a substantial advantage for the business in the future and can help to avoid potentially problematic issues. Thus, a prominent strategy becomes the core of the business’ success.

References

Athapaththu, H. (2016). An overview of strategic management: An analysis of the concepts and the importance of strategic management. International Journal of Scientific and Research Publications, 6(2), 124-127. Web.

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