Strategic management is concerned with: a) Defining business and stating a mission & forming a strategic vision b) Setting measurable objectives C) Crafting a strategy to achieve objectives D) implementing & executing strategy E) evaluating performance reviewing new developments & initiating corrective adjustments.
It is general knowledge that developing the vision and mission of the business is the FIRST step in strategic management tasks. After coming up with the vision and mission, the next step is to set up the company objectives to be accomplished. The objectives could be to have a bigger market share in its specialty product line or service. Another major objective that the company can come up with is to generate bigger sales and lesser costs and expenses for the near and far away future. Another objective is to open up one hundred branches every year around the world. Another objective is to satisfy customer needs and get new customers. Again, another obvious objective is the enter the territorial waters of the competition and "beat" them in their own game of marketing by offering better products and prompt services. The third task of strategic management is crafting the strategy. This is the how of management. For the objective of increasing sales, one strategy could be to hire more salesmen, another strategy to increase sales is to hire new sales men from the competing companies to get the competitors share of the market. For the objective of opening one hundred stores in one year we could get specialists to prepare feasibility studies to determine if the possible entry to unknown territory will result in a profitable venture. When the feasibility shows that it will result to increased income on the over all income statements, then we can go ahead with the expansion. The fourth step is the implementation process. After crafting the strategy, then we can put our expansion plans into action. This will determine whether the projected feasibility study which stated that there will be increased profitability will come out true. The purpose of having first the preparation of the feasibility study is estimate, beforehand, whether we should allocate a large amount of our scarce resources to a project. Implementation of strategy of management to increase market share by hiring courteous and hardworking front line employees can be tested whether these types of work attitudes will indeed increase sales of the business or if the "smiling" front line employees or service crews will not have an effect on sales volume. After the implementation stage, we can now proceed to the last but equally important step. This is the evaluation phase of strategic management process. By evaluating the performance of employees, we can see if the sales has, indeed, increased due to the courteous, fast and efficient service. We