The paper “ Importance of Strategic Management to Ensure Organization's Achieving Its Goals and Objectives” is a well-turned example of an essay on management. Strategic management is a process that is used to strengthen the operations of an organization with the aim of becoming competitive with other companies. Strategic management is important and central to the advancement of an organization, and the aspect of strategic management is complex and brings together numerous aspects of management. The internal and external environment defines the success of an organization: it also determines the strategies an organization should implement.
Mintzberg provides five aspects of a strategy, which are plan, ploy, pattern, position, and perspective. In addition, Whittington presents four distinct perspectives, which are classical, evolutionary, processual and systematic. Each of these perspectives is aimed at advancing the requirements of an organization, but the success of some of the approaches is debatable. These numerous theories and perspectives are aimed at advancing the requirements of an organization by creating a distinctive image of competitors. It also defines the process of collection of information, which is used in decision-making processes.
Through strategic management, an organization can achieve a competitive advantage and sustainable competitive advantage, which enables an organization to outperform the competitors. Corporate Governance and SustainabilityCorporate governance is the way an organization is managed by employing strategic decisions (Payne & Frow 2005). It defines the strategic efficiency in advancing the requirements of the organization while also balancing the requirements of different stakeholders: some of the stakeholders include the management and shareholders. In some instances, the ideas and perspectives of the stakeholders differ, and corporate governance provides mechanisms to iron the differences.
Sustainability and corporate governance are important and are linked to each other (Doh 2005). Moreover, clear boundaries exist between these different stakeholders; for example, corporate management has a role to advance the interest of shareholders while also addressing the regulations and legislations in place. Therefore, corporate governance introduces an aspect of corporate social responsibility to create a positive relationship with some of the stakeholders; for example, the community is an important stakeholder. Through corporate social responsibility, an organization shows its adherence to ethics and moral requirements (McWilliams, Siegel & Wright 2006).
Organizations aim to advance the requirements of ethics and moral requirements rather than merely on financial perspectives. The financial perspective cannot be achieved without considering the aspects of social and ethical perspectives. Therefore, the corporate governance enhances CSR through protecting the community, recognizing the ethical behavior, environmental sustainability, and equity in the distribution of resources to fulfill the requirements of the organization and stakeholders (Doh 2005). Organizations also create the separation between management and ownership of an organization. To understand the different stakeholders, stakeholder analysis is important (Peng, Wang & Jiang 2008).
Some of the stakeholders include the employees, customers, the government, and shareholders. Understanding the requirements and expectations of these different stakeholders enables creating and implementing measures to advance the respective requirements of the stakeholders. For example, management is after generating profits that should be reflected in their salaries while the shareholders are after getting returns on their investments. Goals, Values, and PerformanceOrganizational goals are the targets, which an organization aims to achieve. The values are the characteristics of actions, which an organization considers in achieving the goals. The ethical position is the variables, which help an organization to determine the appropriate actions that are acceptable to the different stakeholders (Doh 2005).
Debates exist on the angle of values, but it is important for the values to be viewed from the perspective of shareholders and stakeholders. Strategic management enables an organization to determine the values and goals and create an environment and frameworks to achieve the goals and values. Numerous theorists have presented their views including Milton Friedman and C Handy on the aspect of strategic management about the expectations of the organization.
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