The economic landscape is constantly changing in the face of globalization. In order to remain competitive, any business must be able to adapt quickly and have flexible management to cope with fluctuations. By implementing a strategic management plan, companies can better adapt to their environment.
DEFINITION AND CONCEPT OF STRATEGIC MANAGEMENT
Strategic management is an integral part of running any successful business. It brings together a set of decisions aimed at achieving the objectives of a company. Focused on the long term, these objectives enable the company to ensure its growth and sustainability. This form of management is the sole responsibility of the company’s management.
To guarantee success, strategic management is activated around 5 main key stages :
- Environmental assessment: analysis of the company, competition and market trends.
- Definition of the company’s vision, mission and objectives.
- Development of the strategy: determination of the key activities to achieve the objectives, mobilization of the necessary resources, strategic choices, etc.
- Implementation of the strategy that will enable the objectives set to be achieved.
- Control: monitoring and analysis of results, readjustment of the strategy if necessary.
THE DIFFERENT TYPES OF STRATEGIC MANAGEMENT
Other forms of strategic management exist such as operational strategic management, tactical strategic management and global strategic management.
Strategic operational management constitutes the decisions taken by the hierarchy concerning the day-to-day management of the company. These decisions taken in the short or medium term aim to optimize resources to achieve set objectives. Operational management works in close collaboration with other forms of management, in particular strategic management, and also includes planning, organization, management and process control.
Although interdependent, tactics and strategy have fundamental differences. Tactical management is a set of techniques and daily actions to achieve one or more short-term or even very short-term objectives such as establishing an action plan or programming a campaign. Unlike strategy, tactical management often requires a quick decision.
Global strategy is a mode of development that consists of making strategic choices to effectively manage a company’s activity. There are 4 types of global strategies :
- Specialization: focuses on a single activity
- Diversification: doing several activities, linked or not
- Integration: taking charge of the different stages that give life to the company’s product/service, without going through suppliers or subcontractors (doing everything, alone)
- Outsourcing: entrusting the execution of certain functions to external service providers (commissioning)
Strategic management is an ideal solution to effectively manage changes within the company. Thanks to this approach, the company is able to respond to current market trends and adapt to changing conditions. In addition, this management method also improves the company’s performance by focusing on essential tasks and by promoting communication and coordination between employees, all united around a common objective.
Replies to This Discussion