Strategic Planning and Strategic ManagementEvery organization in today’s world out there rely on a businessplan that will be beneficial to them in the long run.
However the success andgrowth of the organization depends on the development and implementing of aneffective strategic plan (Schneier,2007). When compared both the business plan and the strategic plan,business plan tends to be based on the foundation, principle guidelines and thebasic platform on which the organization was built upon, whereas strategicplanning act as pillars that hold the foundation or in this case hold thebusiness intact and running. The primary components of the Strategic Management ProcessThe four components which primarily focus on the strategicmanagement process are markets to pursue, unique value to offer, resources andcapabilities to develop, and sustaining the advantage (Dyer, J., Godfrey, P.
,Jensen, R., & Bryce, D. (2016). Withwhat markets to pursue, managementis very crucial about the facts on how a critical analysis within the firm willprovide them a competitive position. This in turns allows the managers toanalyze both internal and external factors that will impact the organization ora business and secure their position over the competition out in a given marketor industry. The second component, uniquevalue to offer, will help business derive a formula geared towards thestrategy where the mangers would be able to understand how and when they willachieve their goals or task and also offer products and services based on thedemands and needs of the consumer.
The third component, resourcesand capabilities, can be helpful to organizations using certain assets,land, equipment, brand, people, etc. are types of resources are generatedwithin the organization are considered organization specific. The capabilities allowbusinesses adaptability on how successful it will be for them to delivercompetitive strategies that will help survive the business in the long run andcreate value over the years. The fourth component, sustaining the advantage, business are able to provide greatervalue than it costs to create it and in return the end consumer is willing topay for it. Define internal and external analysisThe SWOT (Strengths, Weaknesses, Opportunities, Threats), processis the way for a business or an organization to determine and identify internaland external factors that will have a direct impact on the future performance.
Strengths and Weaknesses are theorganization’s internal factors such as skills, resources, capabilities,brands, etc., and they are within the control of the organization. Opportunities and Threats are theorganization’s external factor such as expansion, technology, new competitors,changing market needs, dissatisfied clients, etc. and these usually fall far from the control of theorganization but can have a direct impact on the internal factors.Define the responsibilities and duties of the Strategic ManagerWhen it comes to the responsibilities and duties of the strategicmanager, their job is to ensure that they carry out the same towards thedevelopment of the organization in a long run. The managers are primarilyresponsible for the planning and directing organization’s strategic goals. Theyare also responsible for the implementation of recommendations based on currentmarket trends as well as work on issues that are related directly to SWOT whichin turn will help improve the business process (Varadarajan,2012). Strategic managers usually report to the senior managers withinthe organization and also ensure there defined tasks and goals are directlyaligned to the organization’s mission and objectives.
Why companies need strategic management planningThe reason for organizations or business to implement strategicplanning is because they are the implemented to make them successful in thelong run. Strategic planning is all about creativity and thinking out of thebox theory and the more the businesses implement them the better they are goingto get over a long period of time (Shanley,2010). The fundamentals of strategic planning are considered a blueprint of how something is built upon. Strategic planning is solely based on theperformance of the organization in whole and not just limited to a specificdepartment within the organization.
ConclusionStrategic management is the most vital part of the organizationand it’s the responsibility of every single manager to make sure that the taskand goals are achieved the way they should be and always prove to be beneficialfor the success of the organization. With strategic planning both the shortterm goals and long term goals are achieved and the organization will alsobenefit with desiredsustainable performance excellence.