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Strategic Management is about success and failure, about planning wars and win them. It is like a weapon to the warrior to win the war. It is most important to a Startup.
What is Strategy ?
Strategy is nothing but the “Ideas and actions to conceive and secure the future “of the company. It is a plan to achieve the goals . It is a process to set the objectives and to work for the success of the company. It is knowing the business you propose to carryout.
What is Strategic Management?
Strategic Management is that set of managerial decisions and actions that determines the long run performance of the company. Strategic Management is a combination of Strategic planning and Strategic implementation.
It is a skill and art. As it requires sound knowledge to learn new techniques , it is a skill and as it requires an ability to apply the thought into the market with the future forecasting, it is an art. Strategic management incorporates long range planning and strategy. The objective of strategic Management is to prepare an enterprise to achieve its success and secure the enterprise for future.
What is Strategic Planning?
It defines the organizational goals and objectives. Establishing Long-term goals and Short-term goals for the achievement of success. Selecting a perfect strategy that is to be used in the company to achieve its success.
What is Strategic Implementation?
Developing an organizational structure to achieve the strategy. Ensure that they are properly working. Monitor them effectively for the Organizational objectives.
What are the Benefits of Strategic Management?
The main aim of this Strategic Management is to achieve the goals and objectives of the company like
- Customer Satisfaction.
- Better plan and Control.
- Better Implementation of Strategy.
- It identifies the strengths and weaknesses of the company.
- It shows the effect of company with the external and internal factors.
Hence it has lot of advantages in the company’s chart.
This is very important for a startup after preparing the budget template. An ineffective Strategy can ruin the business.
Generally, Startups start with a single product or a single business, called as single business company. It is tough to prepare a strategy for a multi product based company . Sometimes it takes years together to end with the decision on the strategy.
Three main Approaches for pursuing a strategy
It is just like expanding the market into new geographical areas. Increasing the Market Share in the Global market.
It is just to alter the basic product or service or to add a closely related product or service that can be sold through the current channels.
It adds one or more businesses related to same product or service . It reduces the competition by means of merging two similar product based companies.
How do we analyze a strategy?
Using just two simple methods
- SWOT Analysis
- PEST Analysis
SWOT- Strengths, Weaknesses, Opportunities, Threats of the company are to be analyzed.
PEST-Political, Social, Economical, Technological factors of the company needs to be analyzed .
So these are the important things to be remembered while planning a strategy. Preparing a strategy for a company is a tough task , so use step by step procedure to implement strategy in startups. It is as hard as the preparing a Budget Template.