The primary function of strategic management is to help companies outperform their competitors over a prolonged period of time. Executive strategic management in the integrated management field combines analysis, formulation, and implementation for the intent of gaining a competitive advantage. In other words, strategy is a planned and realized set of actions company executives takes to achieve organizational goals. These strategies are formulated and implemented in order to achieve superior performance relative to other competitors in their industry. For example, in the online search and advertising business, it is pretty obvious that Google has a competitive advantage over competitors Bing and Yahoo. Firms that have the competitive disadvantage are those that have underperformed their rivals. They risk failure if they lack the capability to devise strategies to reverse that downward trend.
Typically, business strategies will consist of goal directed actions that a company intends to implement in its vision to gain and sustain the competitive advantage. The most successful leaders, in the meantime, are those that understand this simple concept: the company that possesses the competitive advantage does so because they are the ones that provide superior value to customers at a competitive price, a more acceptable value, or offer a lower price.
The bottom line is that leaders of these carefully crafted strategies are looking for outcomes that include profitability and market share as a consequence of their superior value creation. In my e-book, The Mission of Strategic Behavior (soon to be released in audio book format), my research work discloses the many functions that strategic management plays as a significant component in determining a company’s future (Berry, 2014). In conclusion, the most successful executives are those that help lead their organizations to achieve optimum performance levels because they are the company’s key decision-makers that use strategic management to guide the development of effective plans that are incorporated into successful operational systems.
That’s a wrap for this post! Until next time … Keep your systems strategically organized!
The best executives are the ones who have sense enough to pick good people to do what needs to be done, and the self-restraint to keep from meddling with them while they do it.
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