STRATEGIC MANAGEMENT Explained Defined & Examples | Animated

Summary

Starting a business involves a steep learning curve, with new terms and concepts to understand. One key aspect is strategic management, which helps businesses organize resources and set goals for success. Using the example of Rob, a prehistoric entrepreneur, the video illustrates how strategic management is essential for business growth. Rob identified his goals, organized resources, and employed strategies to ensure his business thrived. The importance of setting clear goals, planning, and leveraging every opportunity is highlighted, whether for a small local business or a global giant like Amazon or Coca-Cola.

Takeaways

• 😀 Starting your own business comes with a steep learning curve, introducing new terms like strategic management.
• 😀 Strategic management is crucial for any business, whether large or small, and focuses on using resources effectively to meet goals.
• 😀 The concept of strategic management is all about organizing a company's resources, creating a strong business culture, and aligning employee skills with business goals.
• 😀 Although strategic management seems like a recent business trend, its roots can be traced back to the earliest entrepreneurs, like caveman Rob.
• 😀 Rob, the first entrepreneur, used stone tools to help his fellow cavemen, and his strategy led him to successfully monetize his idea without even realizing it.
• 😀 Rob’s success was not just about creating tools but implementing strategic management to ensure his business grew effectively.
• 😀 To achieve his goals, Rob set specific targets like selling 250 spears and 250 bows and arrows, making sure to organize resources and train workers.
• 😀 Strategic management involves organizing raw materials, hiring the right people, and marketing your products to the right audience.
• 😀 Success in business, whether a local cafe or global giant, relies on effective strategic management, not just luck.
• 😀 Setting clear goals, planning effectively, and seizing every opportunity are essential components for business growth and success.

Q & A

What is strategic management in business?

Strategic management involves using and organizing a business's resources to ensure its objectives and goals are met. It includes developing strategies to make a business the best it can be by utilizing its workforce, resources, and strengths effectively.

How does strategic management benefit a startup?

Strategic management helps a startup by creating a strong foundation, fostering a positive business culture, and aligning the goals with the strengths of the employees. It ensures resources are properly allocated to maximize growth and success.

Is strategic management a new concept in business?

No, strategic management has been around for a long time, even dating back to early human history. The example of Rob, the cave entrepreneur, shows how strategic thinking has been applied since the Stone Age.

How did Rob, the caveman entrepreneur, use strategic management?

Rob identified clear business goals, such as selling a specific number of tools, and organized his resources to achieve them. He employed people to collect materials, trained workers, and established a sales team to promote his business.

What role does setting goals play in strategic management?

Setting goals is crucial in strategic management as it gives the business direction. By defining clear and measurable objectives, such as Rob's target of selling 250 spears and 250 sets of bows and arrows, a business can focus its efforts and resources effectively.

How did Rob organize his resources to achieve his goals?

Rob organized his resources by employing workers to collect raw materials, training them to create high-quality tools, and establishing a marketing and sales team to travel and promote his products.

What is the significance of marketing and sales in strategic management?

Marketing and sales are key components of strategic management as they help drive business growth. In Rob's case, having a team to travel to local villages helped him drum up business, ensuring his products had a market to be sold in.

How can strategic management help a small business, like a local cafe?

For a small business like a local cafe, strategic management can help in setting clear goals, organizing resources, and attracting customers. It involves managing operations effectively and ensuring there are enough resources, like quality products and marketing strategies, to meet customer demand.

What does the success of companies like Amazon and Coca-Cola have in common?

The success of companies like Amazon and Coca-Cola can be attributed to their strategic management. They didn't succeed by luck but by setting clear goals, planning how to reach them, and organizing their resources to capitalize on every opportunity that came their way.

Why is it important for entrepreneurs to focus on strategic management?

For entrepreneurs, focusing on strategic management is crucial because it helps them plan for growth, manage resources efficiently, and create a strong foundation for their business. Effective strategic management can prevent costly mistakes and increase the chances of long-term success.