Strategic Management

Strategic Management in business is a process developed through decades of research and experience and is now used by successful companies worldwide. The process systematically evaluates past and present methods of doing business, considers alternative methods for doing things more efficiently, implements them and actively and regularly plans for future success.

This process can be applied to many other projects and tasks in life. For instance, a weight loss program is also a serious business and, as such, deserves a similar approach of strategic planning. Strategic planning incorporates many elements of a formal business plan and consists of several components, summarized briefly, as follows:

1. A Mission Statement, which summarizes the Purposes. Goals. Philosophy and Core Values of the company.

2. A SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) of the Company and its operations should be conducted. This allows the company to assess:

(a) The Internal environment (Strengths and Weaknesses) of the company, including its assets, liabilities, resources (human and otherwise)
(b) The External Environment (Opportunities and Threats) is analyzed, evaluating the circumstances in which the company operates. The modus operandi of the company’s competitors and the economic factors of the time should be considered and dealt with objectively to ensure success.

3.The Company Structure may need to be examined and adapted. The company may choose to operate as:

(a) A Sole proprietorship, doing it all alone, with its advantages of self-determination, but lacking the benefits of economics of scale. Or it may be decided to operate as
(b) A Partnership, having one or more partners with whom to share the expenses, responsibilities and liabilities; or it may choose to form
(c) A Corporation, a legal entity which absorbs all the liabilities, expenses and risks. This may be efficient and convenient, but usually is more expensive.

4.Strategic management requires the company to Conduct Regular meetings, at multiple levels of the firm, to plan, set goals (short-term, medium term and long-term), develop policies and procedures, set up routines and do periodic evaluations to assess achievement of objectives and goals, with modifications,as necessary of business practices.

5. Book-keeping Record-keeping Procedures. A company needs to keep business records, maintain minutes of actions, decisions, plans and results. Inventory of supplies and assets are recorded. Charts are maintained of plans, projects and progress. The company will set up and maintain a budget and decide on investment procedures, amounts and time-lines.

6.Based on the periodic analysis and results of these procedures, Strategic Solutions and Plans will be formulated. As problems and obstacles are identified, the questions should be: What can w do about it? How should our procedures be changed? Are there an alternative ways to deal with issues and problems uncovered, instead of suppressing them or ignoring them? Again, it is necessary to keep records of such decisions.

7. Solutions need to be Implemented as part of the Strategic Management process. This involves involves putting your solutions into practice.

8. Results and Progress must be Monitored on a regular basis. Are we meeting our projected goals? Does the game plan need to be adjusted? This should involve all members of the team, from the corporate level to middle management down to the lowliest employee in the trenches. The opinions and reactions of all stake-holders should be polled and analyzed, including those of the competitors, the clients, customers and members of the public.

9. Celebrate. Finally, success should be shared and rewarded periodically. Take a vacation. Declare a dividend. Distribute bonuses. Include the community with charitable donations to worthy causes. Developing such a corporate culture, which permeates the company, will usually result if a handsome return on your investment.