Advantages of Strategic Management A couple of definitions on STRATEGIC MANAGEMENT Strategic management involves formulation and implementation of the major goals and plans taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. The methodical analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices is another well known definition.  The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. Advantages: 1. Discharges Responsibility The process of strategy formulation satisfies the expectation from shareholders, stakeholders and the general public at large, that a strategically managed organization will discharge its duties successfully. 2. Allows an Objective Assessment Strategic management provides a CONTROL that allows the senior management team to take a step back from the day-to-day business and CONTEMPLATE  about the future of the organization. 3. Faciliatates to Make Wise Business Decisions Strategy provides the framework within which EXECUTIVES at lower and middle levels can make day-to-day operational decisions that are aligned with the accomplishment of the organization’s goals. 4. Enables Understanding and Improves co-ordination between different departments Allowing participation in the strategic management process enables better understanding of the direction, why that direction was chosen, and the associated benefits. Good strategy formulation and communication process are vital steps in enabling effective and efficient strategy deployment. 5. Simplifies Measurement of Progress Strategy sets the direction and empowers an organization to bring into line its objectives and performance measures. These objectives and performance measures allow meaningful information to be provided to decision-makers regarding the organization’s progress through such tools as scorecards and dashboards. 6. Enhances Strategic Agility (Innovation) When a firm can successfully capitalize upon opportunities resulting from unanticipated and significant change, it is said to be innovative as it has a competitive edge over other firms. 7. Ensures Allocation of Resources: The limited resource is properly allocated to different functional levels so as to create value for all stakeholders. A targeted approach to markets and opportunities obviously strengthens your bottom line. A simple representation will make your understanding better: Enhanced Communication DIALOGUE PARTICIPATION | | Deeper/Improved Understanding OF OTHER’S VIEW OF WHAT THE FIRM IS DOING  | | Greater Commitment TO ACHIEVE OBJECTIVES TO IMPLEMENT STRATEGIES TO WORK HARD | | The Result ALL MANAGERS AND EMPLOYEES ON A SINGLE MISSION TO HELP FIRM SUCCEED...

Some business firms with a modest and humble beginning make it to the top in a very short span of time. How do you think this is possible? They have a clear strategic vision that guarantees success. Success does not come that easy. You have to have real focus backed up by solid strategies for such resounding success. A strategy is a comprehensive plan of action that sets critical direction and guides the allocation of resources to achieve long-term organizational objectives. Some people formulate strategies and follow suit, some flow along with the stream of situations and react accordingly, rather than merely plotting strategies. Mere strategizing is not enough, you have to look into the actual situation and how it would affect your operations. Learn Sales Hacking Essential sales skills, sales strategies and sales techniques to sell just about anything! Let us have a clear understanding on the reasons for formulating a strategy Business has gone global for many reasons, including reactive ones like, international competition, customer demands and trade barriers, and proactive ones like seeking economies of scale, new international markets, resource access and cost savings. After the liberalization, globalization and privatization processes activated in full swing, many firms have come to the limelight in the international market scenario, which has provided them with a solid head start. Companies have to respond to both changes in the external environment and emerging opportunities. An opportunity not well utilized is an opportunity lost. Rational planning is called for to meet international expansion through workable strategies. International corporate strategy is purely based on the intentions of your firm, the objectives that stem out from your vision and can be materialized by scanning the environment for threats and opportunities, assessing the internal strengths and weaknesses of the firm, considering alternative international entry strategies and firming up on the workable ones. List down the answers to the following questions and you may arrive at a reasonable conclusion on your company’s market standing.  Strengths  What are your advantages?What is the activity that you specialize in?What is your uniqueness that differentiates you from your competitors? Your own viewpoint and that of the people you deal with is necessary. It is important to be honest and realistic. This exercise helps you and your team to understand the mission and purpose.  Weaknesses  What is done badly?What could be done better?What should be avoided?What causes problems or complaints? To identify the unpleasant truths as quick as possible is the notion of this exercise. Ascertain Your Priorities After ascertaining the priorities, the strategic management process is carried out with well laid plans, executed by professional strategists followed by implementation of control and evaluation procedures. Any corporate firms go for strategic alliances, that may include, acquisitions, mergers, joint ventures, strategic partnerships, cartel agreements and so on to survive in the international market as well as to exploit the opportunities available in the global market with the available potential resources put to optimal...

 Strategy Implementation Organizational objectives must be accomplished by strategic planning and thinking that makes your organization unique and also helps to have a competitive edge. What are the elements that are part of this planning strategy? Proper allocation of resources An appropriate organization structure Efficient human resource personnel An effective management information system A feasible budgeting system A good reward system Periodic strategy review system There are many more aspects that can be attributed to broadly define strategic planning and execution. The success or failure of this exercise is in the hands of managers, who should be adequately prepared for the planning process. The objectives of the organization must be well defined and clear so that the people in the organization can evolve the necessary plans to accomplish those objectives. The action plans are then formulated based on these initially formed plans. So, the planning premises form the base on which the organization is built. Strategic business units must be identified and nurtured to add value to the organization.  Why strategic planning becomes a failure in some of the organizations? Lack of proper training in strategic planning, and the key persons are the managers at all levels. Vague goals and objectives don’t make them meaningful and strategic excellence cannot be achieved. Long term goals not subjected to periodic review. If there is fluctuation in the political, economic or social environment, that is detrimental to the industry in which the firm operates, the goals can be reviewed and a revised strategic plan can be devised for the long term health of that organization. Poor budget planning. To enjoy a sustainable competitive advantage in the market, you need to have a good financial backup to give shape to your plans. The strategic plans must be supported by specific action plans. It is a pity that in many organizations, there is neither co-ordination nor co-operation between the peers to make the strategic plans successful. Integrating these various functional groups becomes a tough task for the management. Simple but effective measures: Above all odds, a company can make things work, if the management is wise enough to follow these  First and foremost thing to be done is to communicate the strategic plans to all the managers who are key decision makers.  The management must make sure that everybody involved in the strategic implementation understand those strategies.  Well devised action plans that contribute to the accomplishment of the firm’s objectives must be laid down.  A well defined span of management that makes communication flow easy and simple.  Revising the strategies in lieu of the contingencies.  A conducive organizational climate that is devoid of conflicts and pressure  Involvement of top management to ensure success. Thinking Out of the Box: You need “thinking managers“, to make your organization grow. The modern business management lays great emphasis on “getting people together” to accomplish the goals and objectives. How do you get people to work together? They should have a common business ideology that binds them to work for the upliftment of the organization. Although top level management cadre is responsible for formulating strategic plans, organizations must understand that the idea also reaches the lower level management in the right sense. That facilitates smooth execution delivering the expected result. Benefit from this Free Udemy Course on Marketing Strategies https://www.udemy.com/one-minute-marketing-lessons-30-quick-marketing-strategies/...