Strategic Management the Importance Strategic Management Organization Essay

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Strategic Management

The importance strategic management organization operating a competitive environment. A case a small business building material business.

The importance of strategic management for small organizations

Strategic management is an integral part of every organization. At its core, strategic management entails utilizing the resources of the firm in a goal-directed manner. Strategizing means the firm has a clear sense of its values and mission and how to achieve goals over the long-term, through short- and long-term planning. The process is as follows: to "set a goal which matches the duly considered expectations of the stakeholders; work out a feasible strategy to achieve that goal; put in place an organisation which can carry out the strategy and attain the goal; [and] set up a control and reporting function to permit management to drive the organisation effectively and make necessary adjustments to the strategy or even the goal" (The importance of strategic management, 2012, Applied Corporate Governance). The last aspect of strategic management is extremely important. Because the external market environment is always changing, there is an invariable need to 'tweak' strategy. For example, in the wake of the 2008 credit crisis, many firms were forced to scale back plans for expansion and to make their product seem more attractive to budget-conscious consumers.

However, changing aspects of the strategic plan does not mean that the firm abandons its core principles. The firm must have a sense of the value it brings to the customer. In the wake of the recession many higher-end stores and brands like Whole Foods and Coach may have been tempted to focus on value rather than quality alone. Although value and a realistic assessment of what an organization's core demographic is willing to spend are important on one hand, on the other hand, there are already many discount firms within the market providing groceries and handbags. A value-oriented strategy alone is not enough to…

Sources Used in Document:

References

The importance of strategic management. (2012). Applied Corporate Governance.

Retrieved from: http://www.applied-corporate-governance.com/importance-of-strategic-management.html

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