Business strategy consists of a group of choices that positions any business in industry to generate greater financial returns. Identifying right choices is not easy or an obvious decision to make, but decisions such as these need to be made and executed using the finite resources available.
Strategic Business Management includes decisions and actions, which result in formulation and implementation of an organisational plan. It is designed in a way to meet the goals and objectives of an organisation. Strategic Business Management supports an organisation to understand its strategic position, strategic choices, and how to turn strategies into actions.
Basic Strategic Business Management Model:
- Environmental Scanning – it involves gathering information within the organisation’s internal and external environment, to plan and set short- and long-term goals.
- Strategy Formulation – this is the step where data is collated to analyse and formulate strategies, which will achieve organisational goals and objectives.
- Strategy Implementation– the strategies formulated are put into action and implemented.
- Evaluation and Control– it is very important to monitor the strategies implemented, evaluating every part of the strategy to ensure it is aligned with the end goals and objectives of the organisation.
Strategic Business Management aims at ensuring that businesses run effectively and efficiently to achieve their end goals, giving purpose as well as a direction to both internal and external stakeholders to understand the business and its ethos.