Firms or companies today face a broad array of risks, problems and issues internal to them and external factors relative to increased international competition due to globalization. Thus, strategic management is an activity necessary to be undertaken by firms who want to sustain their existence in today’s highly competitive environment. Firms develop strategies as they are managements’ plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives. Strategic management is the set of managerial decisions and actions that determines the long-run performance of a firm.
Strategic management will allow a company to gather information about external environments, market trends, competitors, developments in technology, and prospective customers. Planning, directing, organizing and controlling of a company’s strategy related decisions are all tasks involved in strategic management.
It is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment” (Lamb, 1984).
It is very important for a business to have a strategy in place and based on my experience at a previous employer I can say that a quick way to lose a customer is by not having an effective business strategy in place for customer service. Strategy will allow a business to stay on top of their customer base to ensure excellent customer service.
According to the online educational resource Quick MBA, an...
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