Strategic Management Basics

Strategic Management Basics

by Lynn Lopez

Every company and business has to have a goal in mind, both short-term and long-term. Short-term goals will help keep you moving forward, while long-term goals are the objectives which you constantly work towards, planning and refining your plan of action as needed and steering clear of those actions that have been proven ineffective. Companies also have to set guidelines to follow that will help it attain its long-term goal, as well as develop an effective strategy.

First of all, what is strategy anyway? Simply put, a strategy is a series of actions and moves that will help a business successfully attain its goals. To help you determine your strategy, you have to develop a strategic way of thinking, which will help you determine where your company is at present, what direction you want it to go, and the methods you will use in order to steer it to your goals. As a strategic thinker, you should then be able to practice strategic management to keep your company on track.

Strategic management consists of five basic steps: develop your company's mission and vision, set your objectives, create a strategy, implement and execute your strategy, then evaluate and modify the strategy as needed. What you need to do, for starters, is to figure out what kind of company you want to be, what your customers will want, who your competitors are or will be, and what factors can have an impact on your business.

Having a solid vision in place also lets, not just you, but also your employees know exactly why the company exists in the first place. These details will set your feet firmly in place and prevent your company from moving in too many different directions and causing you to lose focus. Specifying your objectives will also help you develop the tasks you need to achieve them; these objectives should not only consist of your financial goals, but also your overall company goals, whether you want to become a market leader or you want to overtake a certain competitor.

Sound simple enough? For a lot of people, the steps of strategic management sound very simple and commonsensical, but believe it or not, a lot of companies do flail around without exercising any of these steps. Strategic management keeps you focused and organized, and makes sure that your company is constantly working effectively with its sights always set on the prize. - 20490

CMOE has been providing companies with (http://www.cmoe.com/leadership-development.htm) executive leadership development programs since 1978. Through (http://www.cmoe.com/leadership-development-training.htm) leadership development training and other innovative business techniques CMOE has established themselves a leader in the business world. Visit www.cmoe.com for more information.