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Strategic management is a business approach that evaluates the current state of a company, identifies areas for improvement, and implements changes to achieve stated goals. It involves developing achievable mission statements, policies, and procedures, and making the best use of available resources. This approach can benefit businesses of all sizes.
Strategic management is a business approach that is used to make the best use of available resources in the process of running a business. The idea behind any strategic management process is to evaluate the current state of the operation and all of its individual components, identify whether those components are being utilized to best effect, and develop and implement changes as and when needed. When used correctly, this approach can improve overall company performance, bring the business closer to achieving stated goals, and keep the cost of raw materials and other resources in balance with the returns generated by business effort.
The foundation of any strategic management approach is to define the underlying reason for the existence of the operation. This means developing an achievable mission statement for the company, setting goals that align with that mission statement, and developing policies and procedures that bring the company closer to achieving those goals. As part of the process, companies must consider the resources that are available and those that can be acquired as and when needed, and determine how to use those resources to achieve the best results.
Once the facility has been established, strategic management requires ensuring that defined policies and procedures are observed in each area of the operation. Here managers, supervisors and supervisors must have a good understanding of the essentials of strategic management and learn how to make the best use of the resources made available to them. This often results in being able to communicate effectively with employees, thoroughly understanding the manufacturing process, and being able to articulate why a particular process is important to the overall success of the operation. In this case, the task of allocating activities and resources to the maximum benefit is easier to accomplish and increases the chances for the business to operate at peak efficiency.
Strategic management is not a concept that only applies to large companies. Even small businesses that employ no more than one or two people can benefit from the basics of this approach. While the exact nature of the processes and tasks required to operate will differ between a mom and pop retailer and a multinational corporation, the general idea behind this management process will still hold. By applying the principles to the real life of the business, it is often possible to maximize the use of available resources, minimize waste in the workplace, and ultimately have a positive effect on the bottom line of the business.
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