Strategic Management Essay

501 Words3 Pages
Strategic Management In business, the strategy is the plan devised to achieve goals and objectives for the long term. These objectives are essential to business success and to meet the expectations and demands of the stakeholders. Concerning the shareholders, this will add value to their investments. One of the essential elements of a strategic plan is to gain competitive advantage in the ever-changing political, commercial, and social environment. To ensure success management must be efficient and effective. Therefore, a strategic management process must be operating within the business, the components within the strategic management process are strategic position, strategic choices, and translating the strategy into action Strategic Position In order for the strategic management process to work in a business, the business needs to be fully aware of the current strategic position and the elements that can affect that position. A business is not an island; therefore the business cannot operate without external forces. There are a number of external forces at play. Understanding and knowing what the forces are and how they affect the business is imperative to assist management in deciding where the threats are and where the opportunities lay within the strategic plan. In the legal, social, and political climate there has been considerable change over the past few decades. There are more regulations that have been introduced, especially in regard to corporate governance. Additionally the expectations of the consumers have changed; this includes issues in the desires of more organic products, fair trade, and corporate governance. Commercial organizations have also been affected by rapid increase in the technological development and concerns about environmental issues. Management possessing a picture of the forces enables the business to evaluate the threats and

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