Strategic Planning and Strategic Management

Every organization in today’s world out there rely on a business
plan that will be beneficial to them in the long run. However the success and
growth of the organization depends on the development and implementing of an
effective 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 the
basic platform on which the organization was built upon, whereas strategic
planning act as pillars that hold the foundation or in this case hold the
business intact and running.

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The primary components of the Strategic Management Process

The four components which primarily focus on the strategic
management process are markets to pursue, unique value to offer, resources and
capabilities to develop, and sustaining the advantage (Dyer, J., Godfrey, P.,
Jensen, R., & Bryce, D. (2016).  With
what markets to pursue, management
is very crucial about the facts on how a critical analysis within the firm will
provide them a competitive position. This in turns allows the managers to
analyze both internal and external factors that will impact the organization or
a business and secure their position over the competition out in a given market
or industry. The second component, unique
value to offer, will help business derive a formula geared towards the
strategy where the mangers would be able to understand how and when they will
achieve their goals or task and also offer products and services based on the
demands and needs of the consumer.

The third component, resources
and capabilities, can be helpful to organizations using certain assets,
land, equipment, brand, people, etc. are types of resources are generated
within the organization are considered organization specific. The capabilities allow
businesses adaptability on how successful it will be for them to deliver
competitive strategies that will help survive the business in the long run and
create value over the years. The fourth component, sustaining the advantage, business are able to provide greater
value than it costs to create it and in return the end consumer is willing to
pay for it.

Define internal and external analysis

The SWOT (Strengths, Weaknesses, Opportunities, Threats), process
is the way for a business or an organization to determine and identify internal
and external factors that will have a direct impact on the future performance. Strengths and Weaknesses are the
organization’s internal factors such as skills, resources, capabilities,
brands, etc., and they are within the control of the organization. Opportunities and Threats are the
organization’s external factor such as expansion, technology, new competitors,
changing market needs, dissatisfied clients, etc. and these usually fall far from the control of the
organization but can have a direct impact on the internal factors.

Define the responsibilities and duties of the Strategic Manager

When it comes to the responsibilities and duties of the strategic
manager, their job is to ensure that they carry out the same towards the
development of the organization in a long run. The managers are primarily
responsible for the planning and directing organization’s strategic goals. They
are also responsible for the implementation of recommendations based on current
market trends as well as work on issues that are related directly to SWOT which
in turn will help improve the business process (Varadarajan,
2012). Strategic managers usually report to the senior managers within
the organization and also ensure there defined tasks and goals are directly
aligned to the organization’s mission and objectives.

 

 

Why companies need strategic management planning

The reason for organizations or business to implement strategic
planning is because they are the implemented to make them successful in the
long run. Strategic planning is all about creativity and thinking out of the
box theory and the more the businesses implement them the better they are going
to get over a long period of time (Shanley,
2010). The fundamentals of strategic planning are considered a blue
print of how something is built upon. Strategic planning is solely based on the
performance of the organization in whole and not just limited to a specific
department within the organization.

Conclusion

Strategic management is the most vital part of the organization
and it’s the responsibility of every single manager to make sure that the task
and goals are achieved the way they should be and always prove to be beneficial
for the success of the organization. With strategic planning both the short
term goals and long term goals are achieved and the organization will also
benefit with desired
sustainable performance excellence.

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