by Wahidabi Sulaiman

Created on: January 13, 2010   Last Updated: January 14, 2010

The Basics of Strategic Management.

In simple words, Strategic management is a process by which the company can analyze where they are currently, and visualize where they want to be in the near future and how they can make the visual and reality as to how to reach where they want to reach in the near future. These are the 3 pillars of strategic management.

Where are we currently?

This is a very important part of the analysis the strategic management would need to chart out. If the team does not agree on the current position of the company, there is no going forward. Why do we need to know the current position of the company? Well, strategic management team is a team that is set by the company to help meet the objectives of the company.

When the company started out, obviously they had some kind of positioning in mind as to where in the market they want to focus on and how successful they want to be at that. The need to have a strategic management reinforces the need to correctly identify, if the company is where it is set out to be in the first place. If not, what happened? If yes, then how can the company move forward and adapt to the changing economy and new competitors?

Where do we want to be?

This want needs to be taken in two paths. One is a short term path and the other is a long term path. Short term strategy needs to be in place for survival sake. Long term strategy needs to be in place for success sake. As you have analyzed the current status of the company, you can safely move towards identifying the future needs of the company to grow and evolve. For this, you will need a few tools to help you focus.

Firstly, you need to align your Vision and Mission.

Vision of a company provides the insight as to where you see your company positioned in the future.

Mission of the company is an extended version of the vision and emphasizes the qualities the company wishes to inculcate in itself as an organization and how the company aims to align the staff and resources towards those qualities. This would encompass everyone involved in the organization; from shareholders to competitors.

The vision and mission needs to be reflected in all activities undertaken by the company. For this, the strategic Management team needs to inculcate the vision and mission into the daily lives of its employees. The strategic management team needs to reflect the vision and mission in all collaterals and information exchanges within and out of the organization.

How do we get there?

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