In the current business world, the technological advancement and globalization are accelerating the global transformation of the competitive environment. In such a situation, for a firm to survive and grow, it must have strategic orientation. The term strategy has evolved from military science/ world with industrialization and globalization it got popularity in the business world as well [David, 2011]. The present state of strategic management is result of a series of advancement in the past.
Strategic management involves formulations, implementation, and control of strategies for a sustainable competitive advantage. Some of the major points to highlight the important of strategic management are discussed below:
Builds Synergy
Deliver value to customer
Exploits core competencies
Deals with opportunity and threats
Strategic Fit
Competitive Capability
Organization Unity
Recourse Management
Organizational Effectiveness
Manages Change.
If I am a manager for ABC Company and setting strategic goals helps me to get long - terms vision and objective. If I have clear strategic plan then I can easily visualize the final picture of my work and I easily execute these works. These long terms objective are clearly defined a general time framework and plan for a company’s long term goal.
If we have clear strategic goal an organization may attain an advantage with respect to cost market power, technology, or management skill. Similarly,
Strategic management always focused on competitive advantage through a Strategic Management efforts are always directed towards building core competencies.
It creates a more proactive management approach by founding on future opportunity.
The financial goal setting is an integrated set of action taken to produce goods or service with features that are acceptable to customer at lower cost, relative to that of competitors [Rao, 2016]. Under this attempts are made to offer standardize products to the customers at price lower than competitors. Its main aim is to reduce cost and increase the market share by providing acceptable product. The overall profit increases due to higher sales irrespective of the lower price. The Importance of setting financial goals are:
Economies of Sales: Per Unit cost of product decrease if the production is carried out in large quantity.
Capacity Utilization: If a business operates in full or maximum capacity per unit cost of production goes down.
Low Cost Materials: If a production is carried out with low cost materials the cost per unit of production can be removed. The price sensitive customers prefers the products with low cost.
Increase in Market Share: The financial strategy may attract more customer by offering products to low price which results in increase market share.
The main aim of setting financial goal in business is to grow revenue of business, decrease the cost, Improve margin and Make profit to shareholders.
References
David, F. (2011). Strategic Management: Concept and Cases. New Dheli: Pearson Education .
Rao, P. (2016). Business Policy and Strategic Management . Mumbai: Himalya Publising House .
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In the current business world, the technological advancement and globalization are accelerating the global transformation of the competitive environment. In such a situation, for a firm to survive and grow, it must have strategic orientation. The term strategy has evolved from military science/ world with industrialization and globalization it got popularity in the business world as well [David, 2011]. The present state of strategic management is result of a series of advancement in the past.
Strategic management involves formulations, implementation, and control of strategies for a sustainable competitive advantage. Some of the major points to highlight the important of strategic management are discussed below:
If I am a manager for ABC Company and setting strategic goals helps me to get long - terms vision and objective. If I have clear strategic plan then I can easily visualize the final picture of my work and I easily execute these works. These long terms objective are clearly defined a general time framework and plan for a company’s long term goal.
If we have clear strategic goal an organization may attain an advantage with respect to cost market power, technology, or management skill. Similarly,
The financial goal setting is an integrated set of action taken to produce goods or service with features that are acceptable to customer at lower cost, relative to that of competitors [Rao, 2016]. Under this attempts are made to offer standardize products to the customers at price lower than competitors. Its main aim is to reduce cost and increase the market share by providing acceptable product. The overall profit increases due to higher sales irrespective of the lower price. The Importance of setting financial goals are:
References
David, F. (2011). Strategic Management: Concept and Cases. New Dheli: Pearson Education .
Rao, P. (2016). Business Policy and Strategic Management . Mumbai: Himalya Publising House .