Strategic management is a process that aims to define and implement an organization’s objectives, goals and actions, in accordance with its mission, vision and values. Efficient is one that manages to align the company’s resources and skills with market opportunities and threats, seeking to obtain a competitive advantage and generate value for stakeholders.
Strategic management is a continuous and dynamic process that requires constant review and adaptation in accordance with changes in the organization’s internal and external environment. It is essential for the success of any organization , especially for micro and small businesses, which face a competitive and dynamic environment.
Strategic management vs. strategic planning
The terms and strategic planning are often used interchangeably, but they are not exactly the same thing. Strategic job function email list planning is a step in that involves defining the organization’s objectives, goals, and actions based on an analysis of the internal and external environment. Strategic management is an ongoing process that encompasses not only planning, but also the implementation, execution, monitoring, and evaluation of strategies and action plans.
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In other words, strategic planning is the “what” and “why” of strategic management, while strategic management is the “how,” “when,” and “who” of strategic management. Strategic planning is an initial phase that provides build a diversified profit model direction and direction for the organization, while strategic management is an ongoing cycle that seeks to ensure the execution and improvement of strategies.
Benefits of strategic management
Strategic management brings a series of benefits to organizations that adopt it, such as:
Increased competitiveness: strategic contact lists management allows the organization to identify and take advantage of market opportunities, as well as anticipate and prevent threats. In addition, helps define the organization’s positioning and differentiation in relation to its competitors.
Increased efficiency: enables the organization to optimize its resources and processes, eliminating waste, reducing costs and increasing productivity. Favors integration and coordination between areas and levels of the organization, avoiding conflicts and redundancies.
Increased effectiveness: helps the organization achieve its objectives and goals, in accordance with its mission, vision and values. Allows the organization to monitor and evaluate its results, correcting any deviations and improving its performance.
Increased innovation: stimulates creativity and learning within the organization, encouraging the search for new solutions, products, services and markets. Also favors the organization’s adaptation and transformation in the face of changes in the external environment.
Steps for efficient strategic management
For be efficient, it is necessary to follow some steps, which may vary according to the model adopted, but which generally involve:
Analysis of the internal and external environment: consists of identifying the company’s strengths and weaknesses, as well as the opportunities and threats of the scenario in which it operates. This analysis can be done using tools such as the SWOT matrix, PESTEL analysis, Porter’s five forces, among others.
Defining the mission, vision and values: this consists of establishing the organization’s reason for being, purpose, identity and ethical principles. These elements should guide all of the company’s decisions and actions, as well as to stakeholders what it does, how it does it and why it does it.
Formulation of objectives and goals: consists of determining the results expected by the company, in a specific, measurable, achievable, relevant and timely manner. The objectives must be broken down into goals, which are the intermediate steps to achieve them. The objectives and goals must be aligned with the company’s mission, vision and values.
