Regardless of industry, company strategic management is a system for establishing and implementing business goals. It assists companies in analyzing areas for operational improvement and devise strategies to achieve their desired results. The approach could be prescriptive, meaning that specific processes are laid out to develop goals and implement them, or descriptive, where general guidelines are given.

To determine business goals, the initial step in establishing a strategic management plan for a company is to analyze internal and external elements that could affect the company’s operations. This includes analyzing external and internal factors that can impact the business’s operations and establishing goals to guide the company’s decisions. Typically, these goals are shared throughout the company and can be implemented by all departments.

When the business goals are identified, the first year’s goals should be established to ensure they align with the strategic goals. These yearly goals should be broken down into KPIs and key results that can be measured and actionable. They can also be tied back to the overall strategic objectives.

The next step in the process is monitoring and evaluating. In this phase the company will assess its progress toward realizing its business goals and determine if any changes must be implemented to the process of strategic management. This could include changing the business model, removing strategies that are ineffective and continuing to monitor the external environment and internal operations for any possible changes. This will help businesses develop efficient strategies to take advantage of opportunities in the market and threats from competitors. It also assists in improving communication among team members and creating a plan for overcoming obstacles that might hinder the strategic goals.

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