Businesses have evolved they no longer run on conventional techniques which proves ineffective in the contemporary world.

This has given birth to strategic thinking and evolution which is shaping the businesses around the globe.

Strategic Management will help a business to take an edge out in the market and prepare them face tough competition strategically.

Strategic Management – An Overview

Strategic Management is an art of Decision Making

Strategic Management is systematic analysis of factors both internal and external to the organisation which provides basis for maintaining optimum business practices.

The objective of strategic management is to achieve better alignment of corporate policies and Strategic priorities

Simply to put Strategic Management is doing right things on right time to achieve organisational objectives.

Components of Strategic Management

Identify Businesses Core-Competency

Setting up clear Business Objectives

Gives Sharper Focus to SME’s what is strategically important to them

Improve their understanding of changing environment

Counter the Competition

Businesses can be Pro-active rather being Reactive

Grow Business Exponentially

Why SME’s Need Strategic Management

Every Business has its own core competency which they are good at they should try to master it;

Core-competency of a business can be:

Good management team;

Good financial position;

Innovation;

Technology;

Quality;

Productivity; etc

Identifying Business core-competency

Setting up clear Business Objective

Businesses can set clear objectives what they wish to achieve

The objective of the Business should be:

1. Quantifiable;

2. Realistic;

3. Should be within their capability;

4. It should be in alignment with their core-values;

5. Should take into account their core-competencies.

Focus what is important

Businesses should focus on issues which is important to them

They should prioritize what is important to them (i.e what they have to achieve first)

Businesses should first set up their short term goals and focus more on it

They have to unite their team and their efforts towards attain the objective

They should set clear focus on areas such as products/services, finance, marketing, supply chain, business team, business growth, etc

Understand the Changing Environment

Business environment is dynamic in nature

Business is left to handle two environment:

1. Internal Environment;2. External Environment.

Handling delicately both the environment is a challenging task for the entrepreneur.

Business house should adopt strategic management to carefully craft their internal policies taking into consideration the external environment

Counter the Competition

SME’s have a tough battle to face from within home as well as from foreign players as we are living in an era of Globalisation

SME’s require to have a strong team with different vertical expertise to counter the competition

With strategic management it is very easy to counter competition by understanding business environment and formulating policies of the organisation

Pro-Active than being Reactive

Strategic Management helps business to be pro-active rather being reactive

It helps a business to asses and understand business environment and potential problems it would face and devise strategies and counter strategies to handle the issues

SME’s need to adopt strategic management and learn to be pro-active and device a strategies to counter the challenges to get a leading edge in the competitive market.

Grow Business Exponentially

Strategic Management will help SME’s grow their business Exponentially;

Proper planning and execution of the plan will help SME’s achieve their goals;

Proper follow-up is also an important step to ensure that business achieves the desired goals.

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