Meaning of Strategic Management
Strategic management entails setting operation limits for an organization in order to make it more competitive in the market. The success of a business organization depends on the operation procedures and strategies adopted to increase customer satisfaction and profitability for the business organization (Harvard Business Review, 2022). In order to achieve strategic management, there must be a balance between the willingness to sell and the willingness to buy. The pricing strategy adopted should not be too high to drive customers away, while it should not be too low to render the business organization unprofitable.
Strategic management plays a significant role in the business organization. First, strategic management helps enhance the quality of products to increase the willingness of customers to buy. Enhancing the quality of products makes them more appealing to customers and increases their chances of buying. Therefore, the willingness to buy among the customers will be increased. Strategic management also helps set product prices depending on production and shipping costs (Harvard Business Review, 2022). The price set for a particular product should make it profitable for the business organization and affordable to the customers. Thus, if the product is made affordable to the customers and the prices enable the seller to make considerable profits, there will be a balance between the willingness to buy and the willingness to sell.
Importance of Strategic Thinking
Strategic thinking entails the ability to come up with unique ideas to solve a problem facing a business organization. In the modern-day business world, competition has escalated, and business organizations would need to adopt strategies that would help the business organization to overcome contemporary challenges and achieve high goals and targets. Strategic thinking is essential for a business organization because it helps identify the problems that might deter the organization from achieving its goals and targets (Horwath, 2017). For managers in the business world, strategic thinking determines the success of the business organization. Through strategic thinking, managers establish the problems of a business organization and come up with unique solutions to the problems.
One aspect of strategic thinking is the utilization of available resources. For managers, strategic thinking is driven by maximizing available resources and staying ahead of the competition in a specific market. A strategic thinker does not need voluminous resources but only needs to develop ideas on how the available resources can be utilized to achieve maximum results for a business organization (Horwath, 2017). In order to make strategic thinking effective in an organization, the manager should dive into the organization’s operations and identify the loopholes that derail employees from achieving their goals and targets. After that, the manager comes up with ideas for reliable operations that can positively impact the output of the employees and the organization.
Relationship between Strategy and Tactical Action
Strategy and tactical action play a significant role in the success of an organization and are related. Strategic actions refer to a manager’s actions toward achieving the goals and targets set in a business organization. Every operation in a business organization should begin by setting measurable and achievable goals and targets that guide the organization’s success (Hawkins, 2014). Once the anticipated goals and targets are set, reliable strategies must also be set (Sinek, 2012). Therefore, strategic actions detail the effective operations adopted to enable a business organization to achieve its goals and targets.
Tactical actions entail executing strategies to achieve specific goals and target a business organization sets. Strategic actions should take the least time because it entails developing operation ideas, while tactical action should take more time to implement the ideas (Hawkins, 2014). For instance, strategic actions might take a week to develop, while tactical actions might take the rest of the year to achieve the set goals and targets. Strategy and tactical actions help business organizations to have clear goals and actions toward achieving them (Sinek, 2012). Strategy and tactical actions also help to define the future of a business organization and the strategies that should be adopted to achieve more returns in the market.
Improving Business Strategy Implementation
Implementing a strategy in an organization relies on simplicity and ease of understanding the basics of the strategy and what needs to be done to make it effective. One way to easily implement a strategy in a business organization is by using simple language. The business organization needs to use a language that can easily be understood by all the stakeholders and non-stakeholders (Hawkins, 2014). The use of complex language and terms deters stakeholders from understanding the basics of a strategy, which makes its implementation hectic. The role of language in implementing a strategy is, therefore, paramount.
It is essential for managers to avoid generalizing terms and targets for adopting a particular strategy. Instead, specific and measurable terms and targets should clearly define why a particular strategy should be adopted and the impact it would have on the business organization. The basics of the strategy to be adopted should be presented in self-explanatory language. They can guide all the stakeholders on what needs to be done to achieve the anticipated results while using the strategy. Therefore, language sets the basics of a strategy and determines the willingness of the stakeholders to absorb it and make it realistic in the daily operations of the business organization.
References
Harvard Business Review. (2022). What is strategy? It’s a lot simpler than you think [Video]. YouTube. Web.
Hawkins, J. M. (2014). How to think strategically and act tactically [Video]. YouTube. Web.
Horwath, R. (2017). What is strategic thinking? The deep dive strategic thinking framework [Video]. YouTube. Web.
Sinek S. (2012). How to improve strategic thinking. [Video]. YouTube. Web.