Strategic management of a business is a strategy that helps project leaders, stakeholders in the company, and team members to understand the goals of the company. It is vital for any business, no matter how big, because it creates an atmosphere of camaraderie among team members as well as it provides a North Star to guide decisions.
This process involves analyzing both the external and internal environments to identify opportunities, threats, and the strengths and weaknesses of the company. The company then formulates plans to achieve its long-term goals. These plans could include implementing processes that ensure that the company is competitive, as also identifying advantages and determining strategies to aid in the growth of the business.
Once the strategy has been established, the executive leadership team will be able to communicate the strategy to their teams. It could take a lot of time to get buy-in for any strategic plan. The leadership team must create an ongoing communication system to keep the goals in the forefront of employees’ minds.
The strategic planning process is iterative and the company should be able to revisit their goals to adapt to changes or new opportunities. This requires both external and internal analysis and the executive leadership team needs to be able to quickly move resources around and alter the strategic direction of the company.
Emaar Properties in the UAE is a perfect example of strategic management at its best. Emaar strategically built Dubai high-rises such as Burj Khalifa, and Dubai Mall http://www.boardroomtheir.com/what-is-strategic-management to ensure that it could establish itself as a place of top-of-the-line. Another example is Australia’s “buy now and pay later” fintech Afterpay that capitalized on a shift in customers’ preferences for flexible payment options.