1.

Definition & benefits of Strategic Management

It is said that organizations must have a competitive advantage to have a higher

profitability than the average profitability for all companies in its industries. In order to do

so, organizations must plan about strategies that managers can employ in order to

improve performances and to achieve competitive advantage. Strategic management

are defined as a set of decisions and actions taken by a manager that determine the

outcome of the firm's performance. Managers should conduct SWOT Analysis to

maximize the use of strength, minimize organizational weakness, capitalize on

emerging opportunities from the business environment, and avoiding neglecting threats.

Strategic management is nothing more than planning for both predictable and

improbable contingencies. Even the smallest organizations face competition and can

achieve a sustainable competitive advantage by developing and implementing

appropriate strategies. Strategic management offers many benefits to companies that

use it, including:

 Competitive advantage: Strategic management provides businesses with an

advantage over competitors because its proactive nature ensures that your

company is always aware of changing market conditions.

 Achieving goals: Strategic management aids in the achievement of goals by

utilizing a clear and dynamic process for developing steps and implementing

them.

 Sustainable growth: It has been demonstrated that strategic management leads

to more efficient organizational performance, which leads to manageable growth.

communication and goal implementation. An organization that works together to

achieve a goal is more likely to succeed.

 Increased managerial awareness: Strategic management entails planning for the

future of the company. Managers who do this on a regular basis will be more

aware of industry trends and challenges. They will be better prepared to face

future challenges if they implement strategic planning and thinking.

2. Business Ethics & Strategic Management

The term "ethics" comes from the Greek word ethos (character) and the Latin

word mores (customs). In philosophy, ethics defines what is good for the individual and

what is good for society, as well as the nature of the duties that people owe themselves

and one another. The difference between ethics and business ethics is that business

ethics are about business. The standards for morally right and wrong business behavior

are referred to as business ethics. Business ethics improves the law by outlining

acceptable behaviors that are not under the control of the government. Organizations

must establish business ethics to encourage “High integrity and Honesty” among their

personnel’s and gain trust from key stakeholders, such as investors and consumers.

Companies are devoted in business ethics since it is an essential skill to avoid negative

implications. In addition to that companies are also creating ethical workplaces by hiring

the right talent. In today’s business, professionals must understand the relationship

between business ethics and business success.

Business Ethics 99% of the employees who experienced strong ethics culture said that

they’re prepared to handle ethical issues. As a result of companies who advocates for

business ethics, it motivates their employees and perform their roles with integrity.

Another reason why business ethics is important is that it benefits the bottom line. A

well-implemented ethics program can improve profitability and reduce losses.

3. The Business Vision & Mission and its importance in Strategic Management

According to Jack Welch, he suggests that a vision is a key tool available to

executives to inspires the people in an organization. The vision of an organization

describes what it aspires to achieve its mission in the future. A vision statement that is

realistic, credible, and appealing attracts commitment and energizes its employees. A

well-thought-out vision statement also connects the present and the future while

establishing a standard for excellence. It also communicates the organization's purpose

to its employees and other stakeholders, inspiring them to achieve that goal.

Where in, the mission of an organizations states what is the reason for the

organization’s existence. It describes what the organizations does, how it does it, and

for whom it does. It is not long-term in nature, as opposed to the vision. It effectively

apprehends an organization’s identity and come up with answers to the question “Who

are we?”. To succeed, organizations must have the support of their key stakeholders,

which include employees, owners, suppliers, and customers. A mission statement that

engages stakeholders will help them understand why they should support the
organization and what important role or purpose the organization plays in society – also

known as a "social license to operate."

It will usually to have successes and failures in the strategic management of an

organizations. So, managers or leaders should celebrate even with the little

achievement towards their objective which part of the organizations mission and vision.

The mission helps the organization to measure the strategic plan whether it was aligned

with the overall goals of the agency. While the vision helps the employees to get

motivated and inspiration. Employees who believe they have a stake in the

organizational change are more likely to stay motivated and productive.

4. Characteristics and components of a Mission Statement

A mission statement is the reason why an organization is existed. It reflects the

organizations’ philosophy, identity, character, and their image. Mission statement can

also be likely known or inferred from management actions, decisions, or press

statements by the CEO. When explicitly defined, it informs both insiders and outsiders

about what the organization stands for. In order for a mission statement to be effective,

it must have the following characteristics.

1. It should be feasible. The mission must be realistic, achievable and should not be

an impossible statement and their supporters must believe them. However,

feasibility is determined by the resources available to work on a mission.

activities of the organization, nor should it be so broad that it becomes

meaningless.

3. It should be obvious. A mission should be specific enough to elicit action. It

should not be a resounding set of platitudes intended for public consumption.

4. It should be engaging. A mission statement should be motivating for members of

the organization and society, and they should find it worthwhile to work for or be

customers of such an organization.

5. It should be distinguishable. A mission statement that is too broad is unlikely to

have much impact.

6. It should highlight the key elements of strategy. The major components of the

strategy to be implemented should be indicated in a mission statement and the

organizational purpose.

7. It should specify how objectives are to be met. A mission statement, in addition to

indicating the broad strategies to be used, should also provide hints as to how

the objectives are to be met.