Post by account_disabled on Mar 5, 2024 10:09:57 GMT 1
Successfully overcoming a labyrinth is quite a challenge, but what if the labyrinth also comes to life as you walk through it, doors open where there were none before or corridors close in your path? This simile represents the importance of strategic management today . A few decades ago, companies established a linear and immutable process in terms of achieving objectives. However, in the current VUCA (Volatility, Uncertainty, Complexity and Ambiguity) environment, this methodology no longer has a place. Now managers must be agile and know how to adapt to new circumstances that continually arise, whether it is a new competitor, a recession in the sector or a global pandemic. In fact, after the Covid-19 pandemic, nearly 60% of leaders say they spend more time deliberately evaluating strategic decisions, according to a recent report by Treasure Data. That is, they no longer only plan their route when entering the labyrinth, but they also know how to adjust the itinerary according to the obstacles or opportunities that appear before them.
This, they put strategic management into practice, where the entire corporate machinery is put at the service of goals that evolve at the same time as the market. strategic-direction What is strategic management? Strategic management consists of a management model where the environment and its constant changes are taken as a Europe Mobile Number List starting point . That is, like any other type of business management, the objective of this methodology is to propose the objectives of an organization and the means or ways to achieve them to put the latter into practice in order to achieve the former. However, in strategic management, this planning-execution-evaluation process is permanent and agile. As Arthur A. Thompson and Alonzo J. Strickland point out in Strategic Management , strategic management “is a process of continuous and systematic movement that provides better guidance to the entire organization about the crux of what it wants to achieve, making the managers to be more alert to the winds of change, to new opportunities and threatening developments.
Therefore, strategic management is characterized by an adaptation of decisions to complex and changing environments , which means that it is a dynamic mechanism, in continuous review and readjustment . Hence, the ability to diagnose is a must-have if you want to dedicate yourself to this professional area. Furthermore, strategic management must be applied at all levels and in a coherent manner between them . On the one hand, this long-term planning must encompass the global orientation of the company as a whole, that is, the corporate strategy : who the company is, what goals it pursues, what it contributes to society, etc. On the other hand, based on these fundamentals, you must also identify what your business strategy is going to be , that is, how you are going to compete in the market: will you identify yourself by the quality of your products? Will you bet on a competitive price? , Will you prioritize innovation?, etc. Finally, based on the corporate and competitive strategy, you must organize the company internally to achieve the goals, deciding the best functional strategy that allows you to use material and human resources in production, marketing, financing , technology or human resources to achieve the best results.