Reference no: EM131709840

Question:

Re-word the following paper so it is not copied. Reduce the word count to as close as seven-hundred words as you can. Run thru a checker to make sure it is not copied. Re-word the final paper on a word document.

Introduction

Beatty and Schneier (2007) avers that strategic management entails the formulation, the establishment, and implementation the primary goals and programs incurred by a given business firm's top officials on behalf of owners. This decision depends on the consideration of resources and a detailed assessment of the both the company's internal and external environments in which the business enterprise competes. This paper aims to describe and define the essential components of strategic management, provides an overview of the internal and external analysis and offers the responsibilities of a strategic manager. The paper makes a succinct conclusion after providing a detailed summary of the reasons why business firms need strategic management planning. 

Primary Components of the Strategic Management Process

The strategic management process entails four main components (Varadarajan , 2012; Morin & Jarrell, 2010). First, strategic management involves a critical analysis of the competitive position of a given firm. In this step, managers are expected to analyze both the external and internal factors impacting the performance of the business and provide its position over the rivals (Fulmer, Stumpf & Bleak, 2009). Fombrun & Shanley, 2010)

Secondly, the process entails formulation of the strategy that the company will use to achieve its goals now that it understands its competitive position (Morin & Jarrell, 2010). The third component involves strategic development whereby the business managers take decisions basing on specific activities that they will perform to achieve the desired success. Lastly, the process entails strategic implementation. This component ensures effective implementation of the strategies formulated in the previous stages. 

Internal versus External Analysis

Beatty and Schneier (2007) adds that both internal and external analyses are essential components that determine the success of a given firm. The SWOT technique is usually used to analyze both the internal and external factors. The internal factors comprise of the analysis regarding the organizational strengths and weaknesses, which are typically much under the corporate control. 

In this case, organizations usually have the chance of moving its people such as employees and loyal customers around, offer sustainable training, change how the organization utilizes other resources and carry out other activities in a different way to improve the ability of the firm to attain its set objectives (Morin & Jarrell, 2010) Fulmer, Stumpf & Bleak, 2009; Fombrun & Shanley, 2010).

Conversely, the external factors comprise of the organizational opportunities and threats, which usually fall far from the control of the organization but have a notable impact on the internal factors of a given firm. For instance, a threat that occurs in a given organization posits an opportunity to its rival. A good example is an impact of the current economy on compelling people to lose their jobs yet other organization take the advantage and employ the experienced employees who lost their employment in the rival firms (Fulmer, Stumpf & Bleak, 2009).

The Responsibilities and Duties of the Strategic Manager

According to Varadarajan (2012), a strategic manager is usually expected to carry out some duties and responsibilities in a given organization. First, the manager contributes to the development of the long-term organizational strategy both at the group and the strategic level. This form of development relies on competitor developments, key market report and the associated long-term audience trends. A strategic manager is expected to contribute to the planning process of a business and assist the organization in translating plans into individual company initiatives and programs.

Fombrun and Shanley, 2010) add that the manager has a responsibility of providing an appropriate advice to the senior executives of the firm on different strategic issues. He or she has the responsibility for ensuring that he or she anticipates both the opportunities and the challenges that arise from legal, technological, professional, and marketplace changes and ensure that they are all translated into a coherent strategy.  

Reasons why Business Firms Need Strategic Management Planning

Beatty and Schneier (2007) define an organizational strategic plan as an official roadmap used to describe how company executives achieve their desired strategy. The plan describes where the organization targets to be next year and outlines the strategies that the firm will use to get there. The program also serves the role of assisting a business enterprise to execute a better job, due to its ability to lay focus on resources, energy, and the time that each and every person has in the organization towards the same direction (Fulmer, Stumpf & Bleak, 2009).  According to Varadarajan (2012), strategic planning is the initial roadmap for the organizational managers who want to achieve the desired organizational growth. Planning helps to build the organizational competitive advantage over its rivals, helps in communicating and interpreting the management strategy to the staff, and ensures proper prioritization of the firm's financial requirements. Strategic planning also contributes to getting each and every organizational stakeholder on the same page and ensures that they remain focused towards achieving the same goals (Fombrun & Shanley, 2010).  

Conclusion

Strategic management is one of the most integral roles that corporate managers are required to carry out to ensure the success of their organization. Corporate managers are supposed to utilize the concept of strategic management to ensure that the organization meets its short-term and long-term goals and achieve the desired sustainable performance excellence.

References 

Beatty, R. W., & Schneier, C. E. (2007). New HR roles to impact organizational performance: from" partners" to" players." Human Resource Management (1986-1998), 36(1), 29.

Fombrun, C., & Shanley, M. (2010). What's in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2), 233-258.

Fulmer, R. M., Stumpf, S. A., & Bleak, J. (2009). The strategic development of high potential leaders. Strategy & Leadership, 37(3), 17-22.

Morin, R., & Jarrell, S. (2010). Driving Shareholder Value: Value-Building Techniques for Creating Shareholder Wealth: Value-Building Techniques for Creating Shareholder Wealth. McGraw-Hill Professional.

Varadarajan, P. R. (2012). Marketing's contribution to strategy: the view from a different looking glass. Journal of the Academy of Marketing Science, 20(4), 335-343.