Strategy is a plan or a process of getting a company’s objectives achieved in future. This process is planned mostly for a medium- until long-term period of approximately five to ten years. Thompson, Strickland and Gamble (2007) identify that Strategic Management require an environmental scanning to implement, monitor, evaluate and review a strategy to ensure the most efficient performance and highest output.
As Adrian Lewis (2015) justifies the three levels of re-engagement will increase the efficiency of employees and their motivation to work. A strategic management process determines the capability and weakness of employees and ensures them to improve. Through this method employees become more alert of their own performance and do want to improve it, especially with a financial incentive. Furthermore, a business strategy will prevent overlapping work due to better cooperation with employees. The company could e.g. offer trainings for their workers during work. Because a satisfied workforce is valuable and can lead you to success
Table of contents
1. Introduction
2. Discussion on importance of business strategy
2.1 Increase in the efficiency of employees
2.2 Financial benefits
2.3 Future Planning
2.4 Strengths and weaknesses
2.5 Better decisions
3. Discussion on importance of strategy review
3.1 Performance measurement
3.2 Signalling function
3.3 Ongoing Analysis
3.4 Corrective actions
3.5 Determine market trends
4. Conclusion
Table of authorities
1. Introduction
Strategy is a plan or a process of getting a company’s objectives achieved in future. This process is planned mostly for a medium- until long-term period of approximately five to ten years. Thompson, Strickland and Gamble (2007) identify that Strategic Management require an environmental scanning to implement, monitor, evaluate and review a strategy to ensure the most efficient performance and highest output.
2. Discussion on importance of business strategy
2.1 Increase in the efficiency of employees
As Adrian Lewis (2015) justifies the three levels of re-engagement will increase the efficiency of employees and their motivation to work. A strategic management process determines the capability and weakness of employees and ensures them to improve. Through this method employees become more alert of their own performance and do want to improve it, especially with a financial incentive.
Furthermore, a business strategy will prevent overlapping work due to better cooperation with employees. The company could e.g. offer trainings for their workers during work. Because a satisfied workforce is valuable and can lead you to success (Adrian Lewis, 2015).
2.2 Financial benefits
Many companies fail because of a lack of strategic focus. With knowing and applying the right strategy a manager can reduce and minimize fixed and flexible expenses as well as cost of capital. One opportunity would be leasing or factoring own machines. This strategy for example would reduce the capital invested and the fixed expenses. Moreover, a strategic management is very useful to select possible sources of capital and raise it at lowest possible rate with optimum conditions. They negotiate about mortgage, return of borrowed capital and conversion into owner’s capital (Management and Business, 2019).
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- Quote paper
- Anonymous,, 2019, The Importance of Strategic Management, Munich, GRIN Verlag, https://www.grin.com/document/1245609
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