Topic > The Importance of Strategic Management - 3201

Group 6Strategic ManagementStrategic management is the process by which the organisation's managers achieve the organisation's objectives and aspirations on behalf of its owners. This is done through the formulation and implementation of ways and methods to achieve the goals and objectives of the organization (Brian, 2011). This is done with thorough consideration of both the internal and external environments in which the organization operates, in order to enable the organization to make the right decisions. Strategic management is an important element that companies must put together through strategic thinking and strategic planning (Nag, R., Hambrick & Chen, 2007). For a company to compete in its industry, it must plan and relate to the industry. Strategic scaffolding refers to the process in which strategies are established on paper and are carefully monitored and compared with their actual execution. Any discrepancies between the "paper" strategies and those executed are detected and corrected. Through strategic scaffolding, an organization is able to build and rebuild its strategies with emerging trends in the industry. This can be induced by inevitable changes such as technological revolution and globalization, new competitors among other forces. Therefore, these new factors should not lead the organization to change the objectives, but, on the contrary, they should slightly change the way of achieving them. Most organizations are unable to create a long-term strategy that lasts more than five years, and during that time, the new forces them to change course to reach the same destination. Organizations should be prepared to modify some of the designated paths to ensure that there is little change in the path to the actual goals, both long and short term. In real terms, strategic scaffolding does not eliminate the old strategy, but rather improves it or adds a new element to the original. Among the former is the creation of a composite portrait that includes three parts, verbal, numerical and pictorial. The verbal element is known as a maxim. While organizations follow a slogan to attract their customers, a maxim is a statement that encourages the organization's workforce to work hard to achieve set goals. The second element is the metric to represent numerical communication. This is a numerical representation of the objectives that the organization wishes to achieve through its strategy. For example, Google uses 70-20-10 as a model to determine the level of resource allocation for its core business (70%), related projects (20%), and unrelated projects (10). Finally, the composite presents the picture, which shows how the strategy would achieve the intended objectives. The composite portrait provides comprehensive information to the workforce on a small surface in a concept known as business circles. The final composite portrait is compared to the actual scaffold matrix to determine if all the information in the scaffold has been present