Doing business today means being in a state of never-ending development because the world changes very rapidly, new information and technological progress accelerate all the processes. Under the circumstances, keeping up with the pace of life is the bare minimum any company needs to achieve to stay competitive. However, long-term success demands more than just that, so strategy becomes a key component for it because there is no use in trying and trusting one’s luck or a happy coincidence. It should be an indispensable part of all the processes and the main reference point for the current and future work. Only with planning and detailed analysis can businesses set goals, determine tactics, and make steps towards their realization.
There is no single universal definition of strategic management, but most of them agree that it stands for a complex of decisions and actions that outline the plan of the company’s development and achievement of the targeted goals. Another crucial component is that it is aimed at the long-term position of the business, allowing a firm to consider where it will be in 10 years’ time and how it will get there, whether it should expand, and so forth. (Ike, 2017). The role of managers implies that they should evaluate the current state of their business, their competitors, the market, and the environment and suggest an adequate roadmap that will guarantee positive results with the help of resources available.
Without a comprehensive strategy, a contemporary business is doomed for a short life before the first significant and unpredicted event that will catch it unawares. In the book “Comprehensive Strategic Management: A Guide for Students, Insight for Managers,” Bolland (2017) lists the reasons why strategic management is important for any type of business. One of its significant features is connectedness because it can tie together different horizontally connected companies, it results from many interactions among colleagues and specialists.
Thus, it is a sum of corporate efforts for the benefit of the whole business and an investment in their further successful collaboration. Another useful outcome of employing a strategy consists in leading to innovation because when the management can see certain aims clearly, they can formulate new ways of achieving them.
The evolution of strategic management in a corporation can be followed through three essential stages: analysis, development, and implementation. According to Frynas and Mellahi (2015), “in a fast-changing and turbulent global competitive environment, by the time managers complete the analysis of the environment and start the development stage, a new competitive environment emerges and may render the first analysis absolute” (p. 6). They state that these phases should take place simultaneously, but it is also important to notice that corporate strategy should not evolve too quickly; otherwise, the management might miss the opportunity to evaluate the performance of the company and optimize it, if necessary.
For any company, strategic management is a guarantee for strengthening their position, meeting customers’ expectations, and achieving overall success. A corporation should analyze the state of affairs inside the company and in the market in general, develop a personal approach to obtain good results, and eventually put their decisions and ideas into practice. This succession of actions helps to create realistic goals and ways of their attainment and, as a result, achieve good performance and popularity with customers in the long term.
Bolland, E. J. (2017). Comprehensive strategic management: A guide for students, insight for managers. Bingley, UK: Emerald Group Publishing.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. (3rd ed.). Oxford, UK: Oxford University Press.
Ike, L. (2017). Strategic management: Concepts & practices. Bloomington, IN: Xlibris Corporation.