Strategic management is the process of managing a business in order to achieve its objectives.
Many organizations have stages that they go through when it comes to their strategic planning, and these stages are not always linear.
For example, many businesses start off with a vision statement before moving on to goals and objectives.
This blog post will outline the stages of strategic management so you can get an idea about what needs your organization may need to address!
Stages Of strategic management
Professionals in the field of business management are often expected to draw up strategic plans for the future. These plans take into account where a business is currently - its strengths, weaknesses, opportunities, and threats (SWOT). The SWOT analysis forms an integral part of all types of planning including long-range planning, which serves as foundational work for medium term planning that then underpins short-term planning.
Long-range strategic planning typically begins with a SWOT analysis and then moves onto establishing mission and vision statements. This methodical approach ensures that every aspect of the company is considered and that nothing falls through the cracks.
The process of developing a company's mission and vision unifies employees around common goals and produces greater levels of commitment than if goals were simply handed down from above. When employees feel they have contributed to the establishment of these guiding principles, they are more likely to follow them and thus take greater pride in their company.
Once a business has developed its mission and vision statements, its next step is to determine what it must do in order to achieve those goals. Every organization should aspire to be competitive in its field, which means identifying and dominating opportunities while mitigating threats so that it can establish itself as an industry leader rather than a follower or struggling newcomer.
The specific steps taken by a successful company will depend on many factors including the size of the enterprise and the type of product or service provided; however there are five key stages through which all businesses go during strategic development:
Stage 1: Vision
The first step in the planning process is to take a long, hard look at where you are now . This may seem obvious but it's surprising how many business owners fail to do this. They assume that since their company has been around for years or even decades that they know all there is to know about its strengths, weaknesses, opportunities and threats.
While commitment to the company's mission statement is an important part of strategic planning it isn't enough on its own. The CEO must also have a clear vision of where he or she wants the business to go. As well as having specific goals in mind, he or she must also possess a strategy for realizing those goals.
Stage 2: Analysis Of Existing And Potential Markets
Once the CEO has formulated a vision for the company's future, it's time to find out whether or not his or her goals are attainable. The first thing to do is look at how the market - both your customers and suppliers - currently operate. What are they demanding? What trends can you identify that will affect them over the next few years? How will changes in government regulations impact their ability to function? Once you have all this information, look at your own company again through new eyes.
This time focus on how much money and resources you're devoting to each division; what synergies exist between departments; and whether any of the products and services you offer could interfere with each other. When considering your strengths and weaknesses, remember that sometimes the things you think of as weaknesses could actually be your company's greatest strengths.
Stage 3: Analysis Of Competitors
Despite what many people believe, competition is often a positive thing since it pushes businesses to excel and forces them to innovate in order to stay ahead of the curve. However, this process can put your company at risk if you don't pay close attention to what your competitors are up to. A SWOT analysis will help with this aspect of strategic planning by uncovering the strengths and weaknesses of each competitor while also drawing attention to potential threats and opportunities they might exploit.
Stage 4: Market Segmentation
Once you've analyzed your market and competitors it's time for some strategizing While all companies face similar challenges when it comes to getting their message out to the public, not all of them do it in exactly the same way. The most successful businesses recognize that there are different groups with varying demands and expectations. If your product or service can be broken down into several categories, then each one should get its own strategy even if some aspects overlap.
Stage 5: Business Strategy
Companies must constantly look for new opportunities if they want to stay competitive in their markets. It's equally important, however, to eliminate unnecessary costs and develop systems and procedures that will allow each department to function more smoothly than in the past so you don't find yourself still playing catch up when it's time for planning stage six.