Key Terms in Strategic Management

           
           There are some of basic strategic management key terms that need to be considered at the beginning in order to completely understand strategic management. These strategic management key terms are eight in numbers and are the base of strategic management.

               1.    Strategists

               2.    Vision & Mission Statement

               3.    External Opportunities & Threats

               4.    Internal Strengths & Weaknesses

               5.    Long Term Objectives

               6.    Strategies

               7.    Annual Objectives

               8.    Policies,

> 8 Important Strategic Management Key Terms :

        Below is the detail all the 8 important strategic management key terms, which are important to understand for developing a successful strategic plan in business.

1.    Strategists :

          

          Strategists are individuals who are most responsible for the success or failure of an organization. Strategists are individuals who form strategies. Strategists have various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur. Strategists help an organization gather, analyze, and organize information.

2.    Vision & Mission Statement :

Vision Statement: Vision statement is quite necessary for the operation of the organization as it provides answer to the question that should be the organization wants to become? The first step in the strategic planning is to develop the vision statement and after that mission statement is prepared. Mostly the organizations develop single sentence vision statements.

Mission Statement: Mission statement is long lasting statement that differentiates one organization from other similar organization. The scope of the operations of the                                          organization in terms of market and product is identified                                           through mission statement.

3.    External Opportunities & Threats :

    

    External opportunities and external threats refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future. Opportunities and threats are largely beyond the control of a single organization, thus the term external. The computer revolution, biotechnology, population shifts, changing work values and attitudes, space exploration, recyclable packages, and increased competition from foreign companies are examples of opportunities or threats for companies. These types of changes are  creating a different type of consumer and consequently a need for different types of products, services, and strategies.

4.    Internal Strengths & Weaknesses:

         Those activities of the organization that are under control of the organization, and may show good and bad impact on the organization are known as internal strengths and weaknesses of organization. These are present in the marketing, management, production/operation, finance/accounting, and information technology research and development activities of the organization. It is quite essential strategic activity for an organization to identify and evaluate organizational strengths and weaknesses.

5.    Long Term Objectives :

           

        Long term objectives are also from one of the important strategic management key terms. Long term objectives are referred to as particular results that organization wants to accomplish in targeting the mission. Expected results by targeting certain strategies are represented by long term objectives. Strategies include those actions that are executed for the accomplishment of the long term objectives. There should be consistent time frame for strategies & objectives which range from two to five years.

The objectives are important for the success of the organization because of the following reasons:

– Provide direction                                                            

      –  Helps in evaluation

– Create synergy

– Reveal priorities

– Focus coordination

– Assist in making plans, organizing data, motivating employee and controlling each and everything

6.    Strategies :

             

   The means through which allow us to achieved long term objectives. Following are included       in the business strategies.

– Geographic Expansion

– Diversification

– Product development

– Acquisition

– Retrenchment

 – Market penetration

 – Liquidation & Joint venture

Large amount of the resources of organization are required along with the decisions of top management for the application of strategies in the form of actions. 

7.    Annual Objectives :

      Those short term targets that are helpful in achieving long term objectives of the organization are called annual objectives. The annual objectives must be quantitative, measurable, realistic, challenging, consistent and prioritized. These must be developed at functional, divisional & corporate levels in large organizations. Annual objectives are significant for strategy implementation whereas strategy formulation phase contains long term objectives.

8.    Policies :

     Annual objectives are accomplished by the means of policies. Policies contain rules, guidelines & procedures developed to assist efforts to accomplish stated objectives. Decision making is guided through policies & recurring and repetitive situations are also addressed through policies.

     Policies are usually mentioned in terms of marketing, finance/accounting, Management and production/operation, activities related to information technology and research and development.