Strategic Management and its Impact on Business
Strategic Management and its Impact on Business
Strategic management is the ongoing planning, monitoring, analysis and
assessment of all necessities an organization needs to meet its goals and
objectives. Changes in business environments will require organizations to
constantly assess their strategies for success (Ansoff et al.,2018).
Increasingly, strategic management has become
crucial in the world of business and the ever-uncertain environment and fast
changing world in which we live and work. Strategic management is an essential
component of businesses. It refers to the formulation and implementation of the
goals and initiatives involved in the strategies, laid out by the stakeholders
of an organization.
Source- YouTube.
In simpler words, to ensure wise decision-making processes, it is
important that strategies are in place to support the business functions and
operations. Strategic management therefore entails evaluating business goals,
the organization’s vision and objectives as well as the future plans. In addition,
a strategic management process is employed to ensure that the business runs
effectively and efficiently. Communicating this strategy internally and
externally is crucial for success, in order for both staff and the organization
to understand the purpose and direction along with external parties
understanding what you as an organization stands for.
Strategic
Business Management
The main importance of strategic business management is to assist the
business’ profit and decision making, Importance of Strategic Management. It
guides the company to move in a specific direction. It defines an
organization's goals and fixes realistic objectives, which are in alignment
with the company's vision.
Planning - This is an essential management tool for any company. The main task in
the strategic planning process is predicting future trends that will help the
business in building in order to make this happen, strategic planning tools
need to be used instead of simple planning processes.
Forward thinking -Through a well thought out strategy, will be able to
draw up clear, long term goals. These goals are important so that have a
distinct idea of how to move forward which can prove beneficial for an
organization’s overall growth.
Resource allocation- The tough aspect of strategy management is that
pushed to make choices under pressure, often with limited resources. Strategy
management teaches ensure the company’s resources, in terms of products and
services, are used wisely and vested in the most promising opportunities. This
is why a good strategy manager will tell you that less is more, as long as it
is the best.
Strengths and weaknesses-No one knows a business better than its owner, who
will be able to recognize the strengths and weaknesses of their company.
However, just being aware of the shortcomings and strong points of a business
is not enough. Strategic planning is employed to bridge the gap between the
capability void and the strength of a company.
Environmental impact-When running a business, must know how the business
impacts the environment and vice-versa. Strategy management involves being
aware of the future potential shifts in the market that may affect the business
and its environmental impacts.
Walmart Business Strategy
Source- Strategic Management of Walmart.
Walmart manages the purchasing of its raw materials at lower cost by
building strategic relationship with its suppliers. Cost leadership strategy of
Walmart revolves around being lowest cost company in its domain creating unique
products that customers will be ready to pay at its best price (Strategic
Management of Walmart, 2018),
The cornerstone of Walmart's business strategy is its everyday low
prices. The brand sells a very large range of products and its focus always
remains on selling products at the lowest prices in the market. The millennial
customers are interested in three things. They are convenience, low prices, and
product quality.
Source- YouTube.
Conclusion
Strategic management, especially when done well, is important for a
business long-term success. A good
strategic management plan goes beyond the improving a business bottom line. A
good plan also gives the company a valid social license for operations. In today’s
environment, this is becoming an ever-more important aspect for each business,
because businesses have multiple internal and external stakeholders. For
example, consumers are seeing an increase in their awareness of their products
being sold by companies. They're also becoming increasingly more interested,
not only in the products a business produces, but also in the way that a
company conducts its business activities. This includes operations from an
environmental standpoint as well as from an ethical one. All of these aspects
should be considered in strategic management and should be included in the
business plans, which should ensure that the business will survive in the long
run.
References
Strategic Management of Walmart (2018): a brief overview. [Online]
[Accessed 09 07 2020].
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R.,
(2018). Implanting strategic management. Springer.
What is strategic management and its impact on business, 2020. You tube. [Online]
Available at:
[Accessed 09 07 2020].
How is Walmart making money by pricing below Cost, you
tube [Online]
Available at: https://www.youtube.com/watch?v=XduHK6XRxSo
[Accessed 09 07 2020].
Walmart business strategy,
(2018).: business strategies for future growth: photo gallery.
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