Strategic management explained

Strategic management is the creation and implementation of a company's principal initiatives and goals on behalf of its shareholders by its senior management, taking into account its resources as well as the organization's competitive environment (Johnsen, 2015). By definition, strategies are activities taken by a corporation to maximize its resources and grow its business. These initiatives may include human resource management, financial planning, or focusing on the firm's goal statement. Management, on the other hand, refers to the day-to-day activity of running a firm and planning for its future success. Therefore, strategic management is all about driving the growth of an organization through effective goal-oriented management techniques (Johnsen, 2015). Apart from Ford Motor Company, strategic management has successfully impacted a broad range of other organizations in various industries, including health, automobile, finance, food, and transport among others.

Strategic management has significantly assisted other organizations in making wise decisions by helping them identify starting points. It, therefore, forms an essential concept for business managers and owners to focus on their goals as it entails the formulation, implementation, and evaluation of the business objectives, goals, and plans, thereby making organizations to focus on the efficiency and effectiveness of their operations (Welsh & Dragusin, 2009). Additionally, strategic management has played a pivotal role in other organizations by giving them an overall direction to their businesses, as well as helping them specify their objectives and develop their plans and policies designed to achieve the set objectives. Besides, strategic management has successfully helped other organizations in allocating their resources for the implementation of the set plans (Welsh & Dragusin, 2009).

Since strategic management models are not static, it has assisted several organizations in strategic decision-making in the context of competitive dynamics and complex environments. That is because strategic management models usually have a feedback mechanism that helps in execution monitoring, thereby giving information about the next round of planning (Witek-Crabb, 2016). Therefore, strategic management has made it easy for other organizations, other than Ford Motor Company, to create unique and valuable market positions, remain competitive by aligning various organization’s activities with one another to boost the identified strategy, as well as make trade-offs by having good decisions (Witek-Crabb, 2016).

Strategic management has also made it easy for other organizations to answer various challenges questions relating to the type of business they should invest in, as well as the best competitive strategy they should adopt (Johnsen, 2015). Besides, it has made it possible for other organizations to improve their efficiency by controlling their operational costs within the boundaries set by the company’s strategy (Johnsen, 2015). The strategic concept of strategic management has also provided organizations with an opportunity to be opportunists in achieving their set goals. Besides, being opportunist offers a competitive advantage to organizations in a fierce competition environment (Witek-Crabb, 2016). Moreover, as a result of the use of strategic management, various organizations have established a systematic preparation for the future, which is a significant step towards the achievement of their long-term goals (Welsh & Dragusin, 2009).

In conclusion, strategic management has significantly impacted other organizations positively. In fact, today, most organizations, both national and transnational, embrace the use of strategic management as the surest means of achieving their goals and objectives. The use of strategic management by Ford Motor Company and other world organizations has made it easy for them to develop various strategies and techniques that give them the best services and products in the most effective, efficient, and productive way.

References

Johnsen, A. (2015). Strategic Management Thinking and Practice in the Public Sector: A Strategic Planning for All Seasons? Financial Accountability & Management, 31(3), 243-268. http://dx.doi.org/10.1111/faam.12056

Welsh, D., & Dragusin, M. (2009). Sustainable strategic management in an emerging market economy: the case of Romanian women entrepreneurs. International Journal of Sustainable Strategic Management, 1(4), 344. http://dx.doi.org/10.1504/ijssm.2009.030510

Witek-Crabb, A. (2016). The maturity of strategic management in organizations. Oeconomia Copernicana, 7(4), 669. http://dx.doi.org/10.12775/oec.2016.037