What is STRATEGIC MANAGEMENT and WHY is it IMPORTANT?

Summary

Strategic management is crucial for organizations to align resources with objectives, fostering innovation and competitive advantage. It involves setting goals, assessing the competitive landscape, and implementing policies for sustainable growth. The process includes strategic intent, formulation, implementation, and evaluation, adapting to digital changes and environmental concerns. Effective strategic management ensures long-term viability, employee motivation, and a proactive approach to market dynamics.

Takeaways

• 📈 Strategic management is crucial for aligning an organization's resources to achieve objectives and involves goal setting, competitive analysis, internal examination, and policy implementation.
• 💡 It fosters creative thinking and innovation, enabling businesses to devise new solutions to problems like the COVID pandemic and prepare for future challenges.
• 💰 Good strategies are essential for financial growth, helping companies identify gains and avoid disasters, thus gaining a competitive edge.
• 🌿 Strategic management is vital for sustainability, as it encourages the development of long-term green solutions in response to the climate crisis.
• 🔄 It helps businesses adapt to digital transformation, integrating new technologies into business models to maintain a competitive advantage.
• 🎯 The necessity of strategic management lies in its ability to guide how a company competes and what it offers in the market, setting clear goals and plans for success.
• 🤝 A solid strategy provides a social license to operate, considering the interests of stakeholders who are increasingly concerned with a company's ethical and environmental practices.
• 🛠️ The strategic management process includes setting strategic intent, formulating a strategy through SWOT analysis, implementing the strategy with defined structures and systems, and evaluating its effectiveness.
• 📊 Regular evaluation of strategic plans is key to identifying potential issues and adjusting the corporate vision as needed for long-term success.
• 🚀 Strategic management can improve employee motivation by setting clear goals and aligning them with company objectives, leading to enhanced performance.
• 🌟 The advantages of strategic management include providing direction, adapting to changes, defining success, and ensuring company survival in a dynamic business climate.
• 🏆 Long-term benefits of strategic management training include equipping individuals with the skills and mindset to navigate and capitalize on the ever-changing business landscape.

Q & A

What is strategic management?

Strategic management is the art and science of managing an organization's resources to achieve its objectives and goals. It includes establishing goals, assessing the competitive landscape, examining internal structure and operations, evaluating tactics, and ensuring policies are implemented across the firm.

Why is strategic thinking important for innovation?

Strategic thinking is important for innovation because it helps devise new methods to overcome problems, such as the COVID pandemic, and prepares businesses for future challenges. It allows organizations to spot development opportunities during difficult times and avoid being overwhelmed by adopting a long-term strategic mindset.

How can good strategies help companies make more money?

Good strategies can identify financial gains and potential disasters, helping firms gain a competitive advantage. This safeguards a company's future expansion and contributes to its profitability.

What role does strategic management play in achieving sustainability?

Strategic management is crucial for achieving sustainability as it involves planning for long-term green solutions in the face of climate crises. It requires businesses to consider environmental impacts and plan for future generations alongside creating lucrative business models and maintaining customer satisfaction.

How does strategic management help businesses handle digital change?

Strategic management helps businesses handle digital change by ensuring executives are aware of how to integrate new technologies into their business models. This allows them to increase efficiency, reduce costs, and stay ahead of the competition in the digital revolution.

What is the purpose of having a strategic management strategy?

A strategic management strategy is necessary to determine how a company will compete in the marketplace and what products or services it will provide. It helps set goals, develop clear plans, align activities with those goals, and allocate resources to achieve objectives.

What are the four steps to implement strategic management?

The four steps to implement strategic management are: 1) Strategic intention, where organizational goals are determined; 2) Formulation of a strategy, involving a SWOT analysis; 3) Implementing the strategy, which requires structures, systems, resources, and change management processes; 4) Evaluating the strategy, where outcomes are analyzed and adjustments are made if necessary.

Why is it important to regularly evaluate a strategic plan?

Regularly evaluating a strategic plan is important because it provides insights into potential issues and whether adjustments to the corporate vision are needed. It allows organizations to measure the effectiveness of their strategy and implement countermeasures if required, ensuring continuous improvement and adaptation to market conditions.

How does strategic management improve employee motivation?

Strategic management can improve employee motivation by setting clear objectives for employees and including them in company goals. When objectives are aligned, studies show a significant boost in both employee and company performance.

What are the advantages of strategic management for a company's long-term success?

The advantages of strategic management include providing direction, adapting to changes, defining success, and helping with company survival. It allows organizations to be proactive, changeable, and active, ensuring long-term viability in a dynamic business climate.

What are the long-term benefits of getting good strategic management training?

Good strategic management training equips individuals with the necessary skills, thinking processes, and technologies to extract value for their business now and in the future. It helps in adapting to the ever-changing business climate and encourages trialing new strategies and pivoting the company to address changes.

Outlines

00:00

📈 Strategic Management: Importance and Benefits

Strategic management is defined as the systematic approach to setting goals, analyzing the competitive environment, assessing internal operations, and implementing policies to achieve organizational objectives. It is crucial for fostering creativity and innovation, which are linked to strategic thinking and essential for devising solutions to challenges like the COVID pandemic. Good strategies can increase profitability and provide a competitive edge. They also play a vital role in achieving sustainability by developing long-term green solutions amidst the climate crisis. Additionally, strategic management aids in navigating digital transformation, ensuring businesses remain competitive by integrating new technologies. A strategic management plan not only boosts the bottom line but also secures a social license to operate by considering stakeholders' interests, including environmental and ethical concerns.

05:01

🛠️ Implementing Strategic Management: Steps and Necessity

The strategic management process involves four key steps: establishing strategic intent, formulating a strategy, implementing the strategy, and evaluating its effectiveness. Strategic intent involves setting clear, measurable goals that guide performance and success. Formulating a strategy requires a SWOT analysis to understand the organization's strengths, weaknesses, opportunities, and threats, enabling the development of plans to outcompete rivals and adapt to market changes. Implementation involves putting the strategy into action with the necessary structures, resources, and processes, including change management and risk strategies. Evaluation assesses the strategy's outcomes and involves continuous monitoring and adjustment to ensure alignment with market conditions and corporate vision. Strategic management is necessary for businesses to compete effectively, providing a roadmap for success and ensuring long-term viability.

10:02

🚀 Long-Term Advantages of Strategic Management Training

Strategic management training equips individuals with the skills, thought processes, and tools to drive business value in the present and future. It emphasizes the importance of adaptability, a key to long-term success in the dynamic business world. Training helps in foreseeing and responding to challenges, creating new strategies in line with evolving business goals, and pivoting the company to address changes effectively. While strategic management can be learned through experience, formal training accelerates this process, instilling judgment and attitudes necessary for success. The training also highlights the benefits of strategic management, such as providing direction, adapting to changes, defining success, and ensuring company survival, making it an essential component for thriving in today's business climate.

Keywords

💡Strategic Management

Strategic management is defined as the art and science of managing an organization's resources to achieve its objectives and goals. It is central to the video's theme as it encompasses the entire process of setting goals, analyzing the competitive landscape, and ensuring policies are implemented. The script mentions that strategic management involves creative thinking for innovation, financial planning for growth, and sustainability in the face of environmental challenges.

💡Innovation

Innovation is the process of devising new methods or ideas. It is linked to strategic thinking in the video, where it is highlighted as a way to navigate problems such as the COVID pandemic. The script emphasizes the importance of innovation in spotting development opportunities during challenging times and in preparing businesses for future issues.

💡Competitive Advantage

A competitive advantage refers to an attribute that enables a company to perform better than its rivals. The video script discusses how good strategies can help companies identify financial gains and potential disasters, thus gaining a competitive advantage in the market.

💡Sustainability

Sustainability in the context of the video refers to the development of long-term, environmentally friendly solutions. It is important for the survival of businesses in the face of the climate crisis, as it requires strategic planning for future generations beyond just financial gains.

💡Digital Change

Digital change is the transformation of businesses due to the adoption of digital technologies. The script mentions that executives must be aware of how to integrate new technologies into their business models to stay competitive, highlighting the necessity of strategic management in the digital age.

💡Strategic Intent

Strategic intent is the first step in strategic management, which involves determining organizational goals. The video script explains that a clear and measurable vision and direction are crucial for assessing performance and success.

💡SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic examination tool used in the script to analyze a company's internal and external environment. This analysis helps in identifying areas of improvement and formulating strategies to outcompete rivals.

💡Implementation

Implementation in the video refers to putting the strategic plan into action. The script outlines the importance of structures, systems, resources, and a process for overseeing change management to ensure the success of the strategy.

💡Evaluation

Evaluation in the context of the video is the final stage of strategic management, where the outcomes of the strategic process are analyzed and assessed. The script mentions that this continuous process allows organizations to measure effectiveness and make necessary adjustments.

💡Stakeholders

Stakeholders are individuals or groups that have an interest in the activities of a company. The video script discusses the importance of considering stakeholders' perspectives in strategic management, as they are increasingly interested in a company's ethical and environmental conduct.

💡Adaptability

Adaptability is the ability to adjust to new conditions or changes. The video script highlights adaptability as a crucial tool for companies to survive and thrive in the dynamic business environment, emphasizing the need for strategic management to facilitate this adaptability.

Highlights

Strategic management is defined as the art and science of managing an organization's resources to achieve its objectives and goals.

It involves establishing goals, assessing the competitive landscape, examining internal structure and operations, evaluating tactics, and implementing policies.

Strategic thinking is linked to innovation, allowing businesses to devise new methods to overcome challenges like the COVID pandemic.

Good strategies can enhance a company's financial gains and competitive advantage by identifying potential disasters and opportunities for growth.

Strategic management is crucial for sustainability, helping businesses develop long-term green solutions in response to the climate crisis.

Strategy is vital for handling digital change, as businesses must adapt to new technologies to stay competitive in the digital revolution.

A strategic management plan sets clear goals for an organization, aligning activities and resources to achieve them effectively.

Strategic management provides a social license to operate, increasingly important as stakeholders become more aware of corporate conduct.

The strategic management process includes four steps: strategic intention, formulation of a strategy, implementing strategy, and evaluating the strategy.

Strategic intent involves setting precise, actionable, and measurable goals for an organization's vision and direction.

Formulating a strategy requires a SWOT analysis to understand an organization's strengths, weaknesses, opportunities, and threats.

Implementation of strategy involves structures, systems, resources, change management, risk strategies, decision-making, and communication.

Evaluating the strategy is a continuous process that measures effectiveness and allows for adjustments to changing market conditions.

Strategic management can improve employee motivation by aligning individual goals with company objectives, enhancing overall performance.

Continuous assessment of strategic plans is key to adapting to dynamic market forces and steering the company towards its planned goals.

Strategic management offers advantages such as providing direction, adapting to changes, defining success, and ensuring company survival.

Long-term benefits of strategic management training include equipping individuals with the skills and mindset for future business success.

Strategic management encourages adaptability and the creation of new strategies to address evolving business goals.

The ability to learn from experience and adapt is crucial for strategic management, allowing companies to thrive in a changing business climate.

Transcripts

What is strategic management and why is it important?

Strategic management is the art and science of managing an organization's resources in

order to achieve its objectives and goals.Strategic management entails establishing goals, assessing

the competitive landscape, examining internal structure and operations, evaluating tactics,

and assuring that policies are implemented across the firm.

So Why Is Strategic Management so Important?

1.

Strategic thinking helps you be creative, so you can innovate.

Innovation and strategy are linked.

You'll be able to devise new methods to get out of a problem like the COVID pandemic,

as well as prepare your business for future problems, if you strategize.

You'll be able to spot development possibilities during challenging times if you can innovate

and strategize when things are going wrong.

You'll avoid getting overwhelmed when confronted with difficult circumstances if you have a

long-term strategic mindset. 2.Good strategies can help companies make

more money.

One of the primary reasons executives plan is to safeguard their company's future expansion.

Being able to identify financial gains and potential disasters will help firms gain a

competitive advantage.

3.

Strategy is important for achieving sustainability.

With the urgency of the climate crisis, you'll need to strategize when developing long-term

green solutions once again.

Once, creating lucrative business models, determining market value, and keeping customers

satisfied was a priority; but now that we face a global environmental catastrophe, we

must plan for future generations.

4.

Strategy helps you handle digital change.

Businesses are changing as a result of digitization, allowing for increased efficiency and lower

expenditures.

To succeed in the digital revolution, top executives must be aware of how to use new

technologies into their business models so that they may continue to stay ahead of the

competition.

Why Is It Necessary to Have a Strategic Management Strategy?

Strategy is a broad concept, and it may be difficult to grasp.

In the world of business, strategy is a method that determines how your company will compete

in the marketplace and what products or services it will provide.

The term "strategy" refers to setting goals for yourself as an individual or organization

(or both) with realistic expectations of success.

The firm will then develop clear, well-defined plans to implement in order to achieve its

objectives and align its activities with those goals, so that the company is in harmony with

them.

It will also assign all of the required resources to accomplish those aims.

Beyond increasing a company's bottom line, a good strategic management plan goes beyond

that.

A solid strategy also provides the firm with a legitimate social license to operate.

In today's climate, this is becoming an increasingly essential component for each corporation because

it has various internal and external stakeholders.Consumers are becoming more aware of their products

being offered by companies, and their interest in those items is increasing.

They're also becoming increasingly more interested not just in a company's goods, but also in

how it conducts its business activities.

This includes everything from an environmental and ethically perspectives.

All of these variables should be considered in strategic management and integrated into

the business' plans, to ensure that the company can continue operating in the long run.

4 STEPS TO IMPLEMENT STRATEGIC MANAGEMENT The strategic management process has several

phases.

While the result will vary from company to company, there are straightforward chronological

stages that businesses may follow in order to put strategies into action.

Step 1: Strategic intention Strategic intent is the first step in successful

strategic management: it's determining organizational goals and using them as a yardstick to assess

performance and success.Rather than broad, an organization's vision and direction should

be precise, actionable, and measurable.

This is when companies declare their future business focus - whether it's profitability,

stockholder wealth, or market leadership.

Step 2: Formulation of a strategy The third stage is to develop a strategy,

which necessitates conducting a SWOT analysis.

It's where businesses forensically analyze themselves, examining the environment in which

they operate both internally and externally.

This strategic examination looks at companies' assets, liabilities, possibilities, and threats.

This method allows an organization to see what it does better than its competition,

what areas it may improve on, and what advantages its rivals have.

This will assist them in generating ideas for how to outcompete rivals and react to

changing market circumstances.

This is when businesses evaluate where they are now and where they want to be.

It's time to put the plan into action once an evaluation has been completed.

Step 3: Implementing Strategy To guarantee the success of a firm, its survival,

progress, and growth, it must be put into practice.

To assure the profitability of a firm, its survival, advancement, and expansion are required.It

is anticipated that over 60% of the plans will be unsuccessful in practice.

Success needs: * structures and systems.

* Defined resources, * A process for overseeing change management,

* Risk management strategies, * Decision-making process,

* Strengthening of competitive capability, * Clear communication strategy,

* Managing human resources by defining roles and rewards.

Strategic plans help businesses to explore new possibilities and bring all parts of a

company into alignment - people, strategy, and operations.

Step 4: Evaluate the strategy The final stage of strategic management is

to analyze and assess the outcomes of the strategic procedure.

Companies may examine their strategy's performance and decide whether to continue on course or

make adjustments to adapt to changing market conditions by measuring its effectiveness.

This is a continuous process in which organizations have the option of examining performance indicators

and implementing countermeasures if required.

The evaluation of the strategic plan provides a picture of potential snags and whether an

adjustment in corporate vision is necessary.It's critical for businesses to evaluate their

approach on a regular basis and identify what works and what doesn't.

TO GAIN A COMPETITIVE LEAD, YOU MUST HAVE STRATEGIC MANAGEMENT.

In a world where work is being disrupted by technological change on a daily basis, effective

management can be the difference between maintaining and growing your company's bottom line.

It implies that company executives who have a thorough understanding of the things and

services their own company offers, as well as a broad vision of what its main rivals

will do next, can make timely business decisions.

It also enables them to plan for potential future possibilities and hazards.

Developing a long-term vision necessitates an understanding of worldwide trends, the

competitive landscape, and stakeholder expectations.

Once a business knows what its goals are, the appropriate resources can be directed

to fulfill that objective.

Organisations can improve their long-term competitive position by making sound decisions

and putting in the effort to implement strategic planning.

Strategic management may also improve employee motivation.

Setting good objectives for employees and including them in company goals can boost

overall performance.When objectives are aligned, studies show a significant boost in employee

and company performance.

However, a strategic management plan isn't sufficient on its own.

Companies that measure and review the outcomes of their strategy are more likely to succeed

and see better financial results if they do it on a regular basis.

Companies that continuously assess whether they are following their corporate blueprint

may adapt to dynamic market forces.

They have the power to steer the company down the planned route.

What are the advantages of strategic management?

Today, strategic management has become a standard component of any business.

A company's strategy formulation and implementation in the correct method help it thrive in today's

dynamic business climate.

Those who can adapt to the transformations and continue to develop will be able to survive

in the long run.

The advantages of strategic management are as follows:

* Gives direction – Strategic management is the process of identifying, prioritizing,

and achieving goals in a deliberate manner.

It aids in the management of large picture by preventing deviation from the true objective.

* Adapting to changes – The organization must react promptly to the problems that are

emerging in order to avoid any roadblocks.

Strategic management allows businesses to be proactive, changeable, and active.

* Defining success – Strategic management may be used by an organization to forecast

the future, set individual employee goals, and assess their performance in order to measure

overall progress.

* Helps with company survival – It is typical for businesses with a weak strategy framework

to survive in the long run, with the continual state of battle and changes in the business

climate.

This problem can be addressed by strategic management, which helps to ensure the business's

long-term viability.

What Are the Long-Term Benefits of Getting Good Strategic Management Training?

When you choose the ideal type of strategic management training, you'll have everything

you need to take your firm into the future and make a significant contribution.

You will be equipped with all of the necessary skills, thinking processes, and technologies

that enable you to extract value for your business now and in the future.

That does not imply that the road to success will be easy.

You'll face a number of obstacles on your path, several of which will be critical to

your company's success.

After all, the ever-changing business climate is what makes today's corporate world so compelling.

At the end of the day, keeping up with business change is the objective of strategic management.

Adaptability is a tremendously useful instrument for companies, which is why it's so crucial

to their long-term success.

In strategic management processes, companies are encouraged to trial new things, create

new strategies in accordance with changing or evolving business goals, and most importantly

pivot the company in order to address these changes.

There's nothing wrong with stating when something isn't working and changing it so that it does,

and this creates an opportunity for firms to not only stay in their sector but also

thrive.

It's possible to learn strategic management through experience; it just takes time.

It necessitates the exercise of good judgment and the development of certain attitudes.

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