Strategic management is a strategy that can be utilized by any business regardless of their industry. It helps to create and implement business goals. It assists companies to analyze areas for improvement in operations and develop strategies to achieve their goals. The method could be prescriptive, meaning that specific procedures are outlined for goal development and implementation or descriptive, where general guidelines are laid out.
The first step in strategic management is to define business goals. This includes analyzing internal and external factors that may impact the company’s operations and setting goals for business to guide decision-making. Typically, these goals are communicated across the entire organization and can be carried out by every department.
Once the business objectives are established, yearly goals for the initial year must be established to ensure they align with the overall strategic goals. These annual objectives should be broken down into key outcomes and KPIs that are measurable as well as actionable. They should also be tied back to the overall strategy.
The next step is to monitor and evaluate. In this stage an organization will review the progress made in reaching its goals and decide what changes are needed to the strategic management process. This could include changing the business model, removing ineffective strategies and monitoring the external environment and internal processes for any possible changes. This process can assist a company in developing efficient strategies to deal helpful resources with threats and opportunities in the marketplace from competitors. It also helps improve communication between team members as well as develop a plan to overcome obstacles that could hinder the strategic goals.