The Importance of Business Strategy |
Management Policy and Strategy
The Strategic Management Concept
The concept of strategic management involves several different aspects of business. In the simplest terms, a company generates objectives and goals by which it would like to operate. The manner in which those goals and objective are accomplished and the strategic decisions made regarding those fall into the concept of strategic management. There are several different key elements in the strategic management process.
A company must first set a high level overview of what it would like to accomplish. This may include its mission ...view middle of the document...
By definition, strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives (Pearce and Robinson, 2011).
The Importance of Having a Future Oriented Plan
In order for a company to create and sustain successful operations, the strategic decisions made must be done with growth in mind. The strategic decisions must make sense not only for today, but also into the future. Decisions should align with the growth forecasts formulated by managers. Having a future oriented plan will help a company adapt to change and be successful in the long term. If decisions are made based slowly on short term success, negative consequences would arise.
A future oriented plan is essentially a blueprint of how a company intends to reach its business goals. All strategic elements play a factor in a future oriented plan including analyzing, planning, allocating, reacting and adapting. By portraying company goals to employees, managing cash flows, performance and vulnerabilities a company will be better suited for future success and sustainability. A company will be more adequately prepared to minimize risks and realize greater rewards by creating and maintaining a future oriented plan as means of conducting business (Gleeson).
Visions, Missions, Values and Philosophy
Before a company can determine how it is going to accomplish its goals, it must first create a mission as to...