The paper "The Company Mission as a Strategic Tool" is a wonderful example of a Business Essay. According to a survey conducted in 2014, the business world has become quite complex in recent years. Competition among the business organizations has gone from bad to worse while customers have become extremely sensitive to price changes. The trend has seen thousands of business organizations vanish in the market while the remaining ones have undergone huge structural changes to deal with the complex business environment. Strategic management has become a major tool for handling the complex business environment and business leaders and managers are left with no option but to understand how to use the tool to execute the management functions.
This paper will demonstrate how the elements of strategic management help to optimize the effectiveness of the management functions. There is no basic definition for the terms of strategic management. According to Koontz and O'Donnel (2008), strategic management refers to the art and the science of formulating policies and implementing them with the aim of achieving an organization's objective. Elkins (2011) writes that strategic management is the process which formulates, implement and evaluate decisions in order to achieve long term objectives of an organization.
Despite the numerous definitions, the terms simple refers to the process in which the top management in an organization devises or formulates policies, implement them, and evaluate the implementation to achieve the long term goals. Koontz and O'Donnel (2008) point out that strategic management has four elements namely environmental analysis, strategic planning or formulation, strategic implementation, and evaluation and control. They add that these elements have a significant influence on management functions such as planning, leading, organizing, and controlling.
Therefore, effective integration of these elements in the management is necessary in order to optimize the effectiveness of the management functions. Elkins, (2011) writes that the success of management functions depends on the effective understanding of strategic management and its elements. Paine (2014) holds that environmental analysis is the cornerstone of successive planning in an organization. Environmental analysis in strategic management is a comprehensive process that involves an analysis of all factors that can affect business organizations. Paine (2014) argues that environmental analysis evaluates all possible factors outside the business which affect business activities.
It gathers a wide range of data in the market and evaluates them to extract useful information. This element of strategic management helps to optimize the effectiveness of the planning function of the management. According to Pearce (2009), planning is based on the quality, quantity, and accuracy of information which the management has gathered. A management that has done a thorough and detailed analysis of their environment will have accurate and quality information which they can use for planning purposes.
Paine (2014) argues that plans that are based on accurate and quality information are comprehensive and inclusive. Consequently, the plan addresses, to a wide scope, various aspects of plan structure. Therefore, the environmental analysis as an element of strategic management provides accurate and quality information that help to optimize the effectiveness of the planning function of management by providing the information needed for planning. In his article, Mintzberg and Waters (2013) write that environmental analysis does not only help in planning but also in leading and organizing. The leading function of the management refers to the use of influence to motivate the employees to achieve the organizations’ goals.
Employees’ motivation is dependent on numerous factors such as economic, social, and cultural factors. Management cannot influence the employees to achieve certain desired goals without the understanding of the factors affecting human resources. The information about human resources is obtained by conducting environmental resources. Buford and Bedian (2009) point out that understanding the needs and the culture of the employees is vital in leading them towards a common goal. Therefore, the environmental analysis which includes the analysis of the employees’ culture and needs perfects the effectiveness of the leading function of the management.
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