INTRODUCTION TO STRATEGIC MANAGEMENT
A strategy is a set of choices that determines the nature, direction, and the value system of an institution or business. A strategy is a mindset that should be understood by every individual in the enterprise, and it is normally used to direct all decision making within an institution (Kourdi, 2009). The strategy determines the core values and beliefs; the markets and clients served, the technique of selling products, the products to be produced and so on. According to Kourdi (2009), a strategy provides focus and achievement of objectives. It develops the setting for servicing choices and initiates the playing field. It further provides direction for decision-making, positioning of marketing and advertising, structuring the business and many others (Kourdi, 2009).
A strategy is simply the technique by which the company uses to meet its challenges and opportunities.A strategy is important because it aids organizations in advancing a clearer understanding of what is required for them to prosper (Pearce & Robinson, 2013). A strategy helps a business to identify its core capacities, address its weaknesses, and reduce business risks. It helps organizations by ensuring that they are doing the right activities at the right time and in an appropriate way. Another importance of strategy in business is that it ensures long-term profits and expansion by helping the company adapt to the changing world. Furthermore, a strategy helps in creating a vision and direction for the entire business. Without focus and guidance, the business employees will hover aimlessly from one activity to another never having knowledge on how to prioritize (Kourdi, 2009).Strategic management process simply refers to the condition by which managers choose a set of strategies that will help them attain better performance (Pearce & Robinson, 2013).
According to Pearce and Robinson (2013), strategic management process has four main steps. The environmental scanning step implies to a condition of gathering, screening, and offering important information for strategic devotions. The environmental scanning process is useful in analyzing the various factors whether internal or external that influences a business. Strategy formulation refers to the process in which management decides the best measures to be taken in order to achieve the set goals (Pearce & Robinson, 2013). Strategy implementation is the third step of the strategic management process, and it means putting the business strategy into action. It involves designing the company's structure, developing decision-making process, and the management of personnel (Pearce & Robinson, 2013). Strategy evaluation is the final step in the strategic management process and implies the carrying out of activities such the appraisal of factors, calculating performance, and taking corrective measures. Having a future-oriented plan is a basic requirement for any type of business.
A company with a future-oriented plan has the opportunity to focus its attention on goals and outcomes. It is done by concentrating attention on the dominant objectives of the business (Pearce & Robinson, 2013). Having a future-oriented plan is helpful in decreasing uncertainty and changes that are inevitable. Without planning, events are left to chance. …