Strategic Management

Strategic management is vital to all companies. Dealing with the corporate world, strategy is the plan that businesses use to accomplish the long-term goals and objectives. The objectives keep the company striving to have continued business success, while meeting the interests and expectations of the business stakeholders. This also protects and adds value to the shareholders investment. The most important element of a strategic management plan is to gain competitive advantage in the commercial, political, and social environment markets.

All plans require efficient and effective management, therefore within a business, it is no different. The strategic management process is needed and must be operated by the business and is composed of three main components which are strategic position, strategic choice, and translating the strategy into action.

Strategic Position

In order for strategic management to work effectively, the business must be truly aware of the current or strategic position and what issues may and may not affect the position. A business must work in the mind frame of “togetherness”. A business cannot operate independently from outside forces. There are a number of forces that may affect the strategic management process and they determine how it will enable management to decide where the opportunities and threats may lie within the plan.

Changes the political, legal, and social sectors have changed a considerable amount over the last few decades. There are more and more regulations, laws, and corporate governances being introduced often, changing the expectations of the consumers, and the consumers’ happiness is of utmost importance; it is what keeps the business successful. Other changes that affect a strategic plan include environmental issues and technological developments. It is important for company heads to get a clear understanding of the different forces so the opportunities and threats are revealed and great detail is...