Whatever the industry, company strategic management is a method for the creation and management of business goals. It assists companies to analyze areas for improvement in their operations and devise strategies to achieve their objectives. The approach may be prescriptive or descriptive. Prescriptive approaches include specific processes for goal setting and implementation.
In order to define business goals, the initial step in establishing a strategic management plan for a business is to study internal and external factors that can impact the company’s operations. This is a process of analyzing the internal and external factors which can impact the business’s operations and setting goals to guide the company’s decisions. Typically, these goals are shared across the organization and can be implemented by every department.
Once the business objectives are established, yearly objectives for the initial year must be established to ensure they align with the overall strategic objectives. These yearly objectives should be broken down into key results and KPIs that can be measured, actionable and can be connected to the overall strategy.
The next step is monitoring and evaluating. During this phase the company will review its progress towards meeting its goals for business and determine whether or not any adjustments need to be implemented to the strategic management process. This could involve modifying the business model, eliminating ineffective strategies and monitoring the external environment and internal processes for any possible changes. This can aid in the development of effective strategies to deal with competition threats and market opportunities. It can also aid in improving the communication between team members and devise a strategy to overcome obstacles that could affect the strategic goals.
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