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Company strategic management involves creating an organization-wide framework for success. This involves planning, monitoring and implementing strategies, and encouraging employees to prioritize their work that align with strategic goals. This involves identifying and analyzing opportunities, risks and business challenges. This type of management may be carried out by top management, but innovative ideas could come from any employee. Companies use both descriptive and prescriptive strategies for strategic management that are based on well-known managerial theories and methods to assist them in making decisions, allocate resources and achieve objectives.

The first step in strategic management is assessing the present situation of the business. This entails looking at internal structure, resources and capabilities, and also evaluating any existing strategic plans. Companies can also use tools like SWOT analysis to discover strengths or weaknesses, as well as opportunities and threats in the market.

Following the initial evaluation companies must create a vision statement, or amend it to reflect the overall objectives of the company’s strategic plan. These goals can range from increasing revenue to cutting costs. These goals usually include a measurable target that is achievable over time.

It’s not enough to develop the strategy to ensure that it’s successful However, it is essential to ensure that it’s successful. The final stage in strategic management is the execution of the plan, which requires great communication and coordination across departments and management levels. Making a decision and implementing a management framework, such as the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is essential to organizing and managing the various aspects of the strategic plan.