What is Strategic Management?
Strategic Management is the inflow planning, analysis, monitoring and assessment of all the requirements a company needs to meet its targets and objectives. Changes in business environments will need companies to constantly assess their strategies for success. The strategic management process helps company to take stocks of their recent condition. Strategic management is the way of actions and decisions which leads to the development of a strategies to help to get corporate objectives.
Different phases of development of strategic management are defined below:
Strategic management is also defined as it is the process in which strategist calculate objectives and make strategic decisions. It can be found in different company, service, business, cooperative, government and other public sector organisations.
Strategic management is depending around a company understanding of its mission and its vision to decide where it to be exits in future.
Types of strategies in Strategic management
- Basic Financial Planning: - Basic Financial Planning is the first phase of the strategic development which is fairly a common routine to basic financial planning. The main function of this phase is to get the annual budget requirement, marketing, human resource and operational function for productions.
- Forecast-Based Planning’s: -It is also based on the material uses. At the time of this development phase, the initial concern is mainly on environmental scanning, effectives plan and allocation of resource for future.
- Externally-oriented Planning: -There is extraordinary shift during externally-oriented planning. The significant developments include: increasing response to markets and competition, evaluation of strategic alternatives, assessment of competitive strength and allocation of resource depends on changing requirements from time to time.
- Strategic Management: - This phase shift focusses over time from meeting the budget to planning for future. To make future decision-makers, integrate all their company resources to get a competitive advantage. The developing the efficient and effective strategic management process can be difficult and long. It needs sustained efforts, sharp political knowledge and extensive patience. Efficient leadership is required for the strategic management.
There are five types of strategies in strategic management which are explained below: -
- Corporate Strategy: -Corporate Strategy is the types of strategy which draw up at the highest level by the senior management of diversified organisation. The diversified organisation is also called as “group companies”. It defined the long-term objectives and commonly affects all the business-nits under one roof.
- Business Strategy: - The business strategy prepares at the business-unit level. It is commonly known’s as business-unit strategy. This type of strategy highlights the building up of the organisations competitive position of service and products. The business Strategy covers all the tactics and activities for competing in the dismissal of the competitors. The main things of business strategy are on innovation, product development, integration, diversification and market development.
- Competitive Strategy: - This type of strategy concerned with plan that associated the clout of the external condition. This strategy refers to the personal status of a company. The competitive strategy of business initiatives and approaches. It promises the company to charm the client and deliver. The main objective of competitive strategy to win the heart of the customers and fulfil their requirement.
- Functional Strategy: -It refers to a perspective that points up the certain functional area of a company. Its main objectives are to set down to get business unit by increasing resource productivity. The function Strategy is related with developing distinctive the right stuff to give a business unit with a competitive advantage. Functional Strategy accommodate to support a competitive strategy.
- Operation Strategy: -The Operation Strategy provides form to the operation units of the company. An organisation may develop an operating strategy. It put across at field level to get on hand objective.
The strategic Management is the regular process. It begins with explaining the mission, vision goals and objectives of the organisation. Here we will understand all the process of the organisation Specifics.
Mission is responsible for the role a company plays in the environment.
Other Definition of Mission are “ It is the purpose for the companies existence.
Vision Take position at highest in the major hierarchy of the strategic unit. It defines that what actually company try to attain in the long-term business.
Goals and objectives of the organisation
Vision is defined as “It is the statements of the company in the future”.
The objectives explain about the ultimate end output of the organisation wants to realize by preparing a strategy for selected timeline. The goals combined with large category of financial and non-financial problems that organisation try to get in the particular duration of time. The objectives are the methods that explain how the goals of the organisation has to attain.
What are the differences between objective and Goals?
- Goals are generally actioning that impact by the external environment.
- Objectives are always quantified where as goals are not quantified.
- Goals has large category where as objectives are certain and compact.
- Objectives are set for less time but goals generally set for longer future.
Advantages and disadvantages
CEO celebrity is an untouchable asset for any organisation and may leads to developed the opportunity offered to the company. Managing and hiring a celebrity CEO may increase the stock price, motivate employees, increase company image in market and communicate with stakeholder positively.
Types of CEO
But these all there is also some disadvantages of the CEO Celebrity. Enlarge the celebrity CEO which make gaps between expected and real organisation performance will be praise. If the CEO celebrity is wrong, illegal or unethical then there is situation occurred to attain the negative point and which create issue for firm.
There are many types of CEO. Some of the main CEOs types are explained below:
Icons are the CEOs who take credit both high reputation and fame. The icon CEO attributed to the association of style and substance in the performance of CEOs work responsibilities.
This type of CEOs has not much fame but ability to manage high reputation in environment. Hidden CEOs have capacity to among employees and proceed the organisation on the success path.
This types CEOs have low reputation but high fame. Scoundrels CEOs are well unknown to all but it is sufficient denigrate.
This type of CEOs is well known on daily newspaper by their speech and working of style. SO, celebrity CEOs required more alert and responsible about involvement of everything happening in the organisations.