Objectives of strategic management, the mission of the enterprise is considered as an advertisement for the purpose for which the establishment was found, it precisely defines the basic objectives of the establishment far from generalities and clearly states the long-term objectives that the establishment seeks to achieve, the services it provides or the products it produces, and the range of the beneficiaries of these services and products.
Objectives of strategic management
It can be said that the mission of the enterprise (its goal) is the philosophy on which the strategic management decision is based. The mission of the establishment aims to:
1- Laying the foundations, rules, regulatory amendments, and objective standards of competence for the work of the facility to increase its ability to deal with the internal and external environment efficiently and effectively.
2- Determining the priorities of work in the facility and the successive stages and allocating resources and capabilities for them to reach the achievement of goals.
3- Determine the method, principles, and methods of collecting information and data on the strengths and weaknesses of the establishment and in the competing facilities, as well as the local and external threats that may affect the progress and success of work in the establishment.
4- Determine the general directions for the contents of the strategic decision of the facility and focus on the most important issues in it.
It represents the nerve of management, and it is a creative and creative process that depends on scientific and objective and is taken by the leaders of the higher strategic management and after being approved by the strategic director, the planning stage and the preparation of strategic plans that embody the theoretical reality of construction into a practical operational reality carried out by all components of human resources and infrastructure in the facility, including employees And employees, beneficiaries, shareholders, customers, and others in order to achieve the objectives of the enterprise’s mission.
The stages of taking strategic management
1- Macro Environment:
Where the general environment includes all external forces affecting short and long organizational decisions, including economic, technological, cultural, social, political, and legislative forces.
2- Partial external environment:
Includes all elements or groups that have a direct influence on the basic organization processes and some of its components include shareholders, government, interest groups, trade unions, and the ‘competitive’ commercial and industrial environment.
3- The internal environment of the organization: Micro Environment:
Analysis and evaluation of the internal environment: The internal environment of the organization is analyzed, and this includes the analysis of its strengths and weaknesses in addition to the culture of the organization and the nature of communication in it. The analysis includes:
It includes communications, authority, and the chain of command, which is described by the organization’s organizational structure.
Culture: It includes beliefs, expectations, and values shared among the members of an organization.
Resources: These include physical assets, skills, human capabilities, and managerial talents.
Strengths: When it becomes clear that some strengths can be exploited for the enterprise’s gains, then what should be done in practice to implement this should be determined.
Weaknesses of the facility that could negatively affect its ability to carry out its responsibilities towards the beneficiaries of its products and services.
Classifications of strategic management
Strategic management is divided into several schools of thought:
1- The guiding approach
Explaining how strategic management can develop strategies, leaders of the organization focus on learning from past strategies and studying the environment as a whole. The collective knowledge is then used to develop future strategies and guide employee behavior to ensure that the entire organization moves forward. For these reasons effective strategic management requires an internal and external perspective.
2- The descriptive approach
Focuses on how to implement strategies. These schools disagree on whether strategies are developed through an analytical process in which all threats and opportunities are accounted for, or very similar to general guidelines that should be applied.
While the top management of an organization is ultimately responsible for its strategy, the strategies themselves often emerge from actions and ideas on the part of lower-level managers and employees. An organization may have multiple employees dedicated to the strategy rather than relying on the CEO for guidance.
The importance of strategic management
Strategic management is about identifying and describing the strategies that managers can implement to achieve better performance and competitive advantage for their organization. A firm is said to have a competitive advantage if its profitability is higher than the average profitability of all firms in its industry.
As it is a package of decisions and actions undertaken by the manager that determine the outcome of the company’s performance. The manager should have thorough knowledge and analysis of the general and competitive organizational environment to take the right decisions.
A SWOT analysis should be conducted (strengths, weaknesses, opportunities, and threats), that is, they should optimally utilize their strengths, reduce organizational weaknesses, and take advantage of opportunities arising from the business environment, and we must not ignore the threats.
Characteristics of strategic management
1- Planning for emergencies
Planning for unexpected and unlikely emergencies. This applies to both little and enormous undertakings and by forming and carrying out suitable procedures they can accomplish supportable upper hand.
2- How to set goals
Where strategists set goals and set out to achieve them. It deals with making and implementing decisions regarding the future direction of the organization. It helps us determine the direction in which the organization is moving.
3- The business evaluation and control process
Valuation of the business and industries in which the organization is involved; Evaluate its competitors and establish goals and strategies to meet all current and potential competitors and then reassess the strategies on a regular basis