What are the 3 steps of strategy management?

In simple words, it refers to an asset of tasks needed to formulate plans and strategies for attaining better performance for an organization. It involves all processes from the framing of plans to its successful implementation. An important area of study in the finance field, it has garnered significance of late due to a surge in corporate and industrial activities.

Importance for finance students

More than half of finance students aim for a rewarding career in the corporate sector. A thorough knowledge of strategic management steps will give their career a terrific start. So it is imperative that students have to be familiar with concepts of this topic. When faced with difficulties in grasping the terms and theories, they can take help from finance homework help online Australia.

Basic steps in strategy management

Steps in strategic management can be broadly classified into three:

1.    Formulation of strategies:

The first step in strategic management is to frame plans.

a.    Identify the long term and short term objectives of the business. Decide on the goals. While fixing the goals, management has to adopt a realistic attitude so that goals remain achievable.

b.    Next step is to analyze organizational structure vis-vis the goals. See whether the structure and functioning of the company are suited for attaining objectives.

c.    Fix targets to be achieved in business. These targets should be fixed separately for every area of operation.

d.  Device optimum strategies which will help in achieving the specified targets.

 

2.    Implementation phase:

After strategies have been formulated, next step is to put them into action.

a.    Implementation is an administrative task which involves bringing together all factors needed to attain the goals.

b. The goal should be divided among different sectors or departments of an organisation.

c.    Allocate resources needed for each sector. Resource allocation should be done wisely as there should be no excess or shortage.  

d.    Build a team of able leaders who can motivate their team to work efficiently.

e.   Reward the best performing departments monetarily or otherwise. This will keep up their morale. Recognizing good efforts is the best way to have a team of loyal workers.

 

3.    Control and evaluation:

It is not sufficient to plan and implement. Unless they are properly followed up, an organization cannot reap the benefits of planning.

a.    Fix benchmarks for measuring the performance of each department. This benchmark will be fixed on basis of cost factor, skill level required for specific jobs etc.

b.    Compare actual performance with the benchmark. For measuring actuals correctly, there should be a proper reporting system in place.

c.    Analyze the deviations from actuals. If performance is better than a benchmark, rewards should be given so as to provide the incentive for future.

d.    In the case of underperformance, find out the causes and set out to remedy them. A change of strategy or betterment of staff may be needed to correct mistakes.

A complete study of these topics will require lots of efforts and practical exposure. Surely, students can get help from strategy management assignment help. A lucrative career is in store for students who master basics of strategic management.

About the Author:

Steven Smith is an author of this article, who writes about the importance of finance homework help online Australia. He has also written about the benefits of Strategy Management Assignment Help.

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