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Strategic Management: Get to Know Its Purposes and Processes!

In its operational activities, a company will certainly determine and implement various strategies that it can do to achieve the targets that have been set. This strategy determination process is often known as strategic management. Not only aims to achieve the company’s targets, but this thing can be a step in overcoming various problems in the company. Check out the following explanation to find out more about strategic management!

Strategic Management Definition

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According to Investopedia, strategic management is the management of an organization’s resources to achieve its goals and objectives. In other words, this thing can be defined as a moment of decision-making to be implemented by all organization or company stakeholders to achieve the desired targets. Wheelen and Hunger (2012:53) said that strategic management is a set of managerial decisions and long-term decision-making actions within a company, including environmental analysis, strategy formulation, implementation, evaluation, and control.

Also read: 7 Benefits of Sales Management Software for B2B Companies

Strategic Management Purposes

After knowing its definition, you also need to know about its purposes. What is the purpose? Here is the explanation of each purpose:

Give directions to achieve goals

To achieve the company’s goals, of course, the company manager must provide good and clear direction to all company’s stakeholders. Why is this important? With clear direction from the manager, the company can develop and achieve the desired targets. 

Keeping good of various parties interests

In its operations, the company will have indirect contact with various parties. Generally, these parties are employees to the community. All decisions that the company makes must go through good consideration, so the decisions will not harm the relevant parties.

Anticipating the changes

Alongside the time goes, the company will adapt to the current era. One of the adaptations is making various changes, both internal and external. The presence of strategic management can be a guideline in adapting to all possible changes that exist.

Effectiveness and efficiency

Every company wants its operations to run effectively and efficiently. With strategic management, the company can make its operational activities run effectively. One of the effectiveness and efficiency aspects, in this case, can be viewed from the utilization of the company’s human resources.

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Strategic Management Processes

Strategic management planning is certainly through several processes. This process consists of three stages: strategy formulation, implementation, and evaluation. Here is the explanation of each process:

Formulation Strategy

The formulation of the company’s strategy in this stage includes the company’s vision and mission, identifying opportunities and threats that can occur, and determining the company’s strengths and weaknesses. This stage becomes an important initial stage because it determines the company’s future.

Strategy implementation

After formulating the strategy, the company can implement various strategies that have been formulated before. The company’s human resources certainly support the implementation of this strategy. To simplify your work in managing it, use the best human resource application system from HashMicro. Therefore, along with the implementation of this strategy, the company will motivate, allocate, and give direction to the company’s stakeholders.

Strategy evaluation

The last stage of the strategic management process is evaluating the implemented strategy. The company will assess how the strategy has been implement in its operational activities. If the implemented strategy is going well, it is possible for the company to keep implementing the strategy. Otherwise, if the implemented strategy does not work properly, the company will find another alternative strategy. 

Also read: What is Assessment? Definition, Function, Type, and Purpose

Conclusion

Strategic management becomes one of the success keys for the company in achieving the desired targets. The implementation of this management can certainly be successful if supported by the company’s human resources. There are three stages that the company must go through in the implementation of this management, ranging from strategy formulation, strategy implementation, and strategy evaluation. One of the purposes is to increase the company’s operational efficiency.

strategic management

Speaking of the company’s operations efficiency, HashMicro as the leading ERP Software provider presenting solutions for your company in simplifying all operations aspects, ranging from recording transactions with Accounting Software to managing the company’s documents digitally with Document Management Software. Contact us now to get the best deals and free demo!

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