Are you looking for a strategic management definition? Strategic management is the process of implementing systems to help a company reach its objectives. The process includes creating and communicating the vision, mission statement, and goal of a company. It also involves implementing the actual strategy throughout the company and measuring it every couple of months to see the progress.
An example would be using the SWOT analysis to figure out where the company lies. SWOT stands for strengths, weaknesses, opportunities and threats. By breaking your business down in this matrix, you can find out what the company can use as its advantage, what it can improve on, and what other businesses are doing better. The SWOT analysis is a strategic management definition task that begins the whole process of putting systems and improvements into place.
Another example is figuring out the competitive advantages of the company. This process helps businesses identify their business assets, competencies, and advantages in the marketplace. By figuring this information out, they can use this in their marketing, business model, sales department, and more. If a company finds out that their competency is in providing a valuable product at lower prices, they can use this in their marketing pieces.
The main message can be that they are offering a product that’s as good as or even better than their competitors. And it will be attractive to consumers if the prices are lower. This can build a strong brand and help get attention to the business. The company can build on this into their sales and marketing systems through the use of multiple mediums and software programs.
The strategic management definition is basically planning on the biggest level. But what business owners need to understand that it is implemented on three levels – the corporate level, business unit level, or departmental level. The corporation level involves figuring out where the company fits in the marketplace. It also involves connecting the members and different parts of the company as well as managing how parts of the company are structured.
The business unit level involves managing a division of a company so that it can run effectively. This can mean a product line of the company. If a company were to sell kitchenware, one business unit level may be the section for tools such as knives, spatulas, bowls, etc. Another business unit level may be the electronics division such as toasters, microwaves, mixers, etc.
The functional level is mainly for implementing the strategies to make the business run. This can be customer support, marketing, product development, market research, employment management, finance, and more. As you can see, the strategic management definition mentioned earlier makes sense.
It is the process of planning the whole business from top to bottom to make it run more effectively and efficiently. This in turn makes the business profitable and helps it stay competitive in its industry.
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