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Essentials of Strategic Managment

<strong>Essentials of Strategic Managment</strong>

Strategic management lies in the long-term plans conceived. The steps that are carried out within the framework of such management not only increase the efficiency of the implementation of the tasks set, but qualitatively change the entire business. For example, a company has the task of opening a branch in another city – this is a strategy, as the business reaches a new level. And the opening of the fifth branch will already be a tactical task, since there is already a ready-made scheme of actions.

Strategic management is important for a business of any size and helps to develop it. It is a misconception that strategic management is only for large corporations. Small businesses within limited resources should use them to the maximum. Every strategic mistake greatly slows down the development of the company.

The purpose of essentials of strategic managment is the development of the company and its rapid growth. But they need to work. The reason that many companies that provide quality services or products do not grow is precisely that their owner does not specifically expand them: does not set goals, does not plan and does not develop the product.

Often at the beginning of its activity, the business successfully develops and implements a cool idea, but over time the company stops growing. For example, many companies provide outsourced bookkeeping services but remain small. Although there is a great demand for high-quality accounting services. The same can be said about restaurants or shops. Even though they provide good services and generate revenue, they don’t scale. And this is due to the fact that no one specifically works on their development. To make the business systemic, to see the bottlenecks in the processes in time and eliminate them, any management automation service will help. For example, in Plat rum, you can create a company structure, assign employees to positions, specify metrics for each of them, and monitor the achievement of goals through planning.

Stages of strategic management

Essentials of strategic managment consists of two stages: 

Stage 1: planning

For example, to open a second cafe in another area, you need money, premises, new staff that needs to be trained, you need to run advertising. This will be done by employees who have the main job, the success of which depends on the development of the business. Therefore, the second stage is very important.

Stage 2: control

The strategy is not implemented in a month, therefore, control over the implementation of the plan over a long period of time is needed. And the owner needs to monitor the implementation of tasks, constantly remind about them, exert some pressure, otherwise the development plan will be buried under current affairs.

The desire of employees to develop contributes to the implementation of the strategic plan. Employees who understand that business growth and scaling takes them to a new level are interested in business development. In order for people to actively and consciously participate in creating the future of the company, the owner of the company must dedicate employees to development plans. And then constantly focus on how the accomplishment of the objectives contributes to the achievement of the strategic plan. Thus, the team will be inspired, the owner of the company will receive support and neutralize the resistance from employees that often arises when introducing changes.

Not only the desire, but also the motivation of the staff plays an important role in achieving strategic results. Create a system of bonuses that encourage you to complete new tasks. And it doesn’t have to be awards. This may be an opportunity for career growth or greater independence in building a company development plan.

Interestingly, when a business is just being created, the strategy is clear and understandable to everyone: create a good product, find staff, learn how to serve customers well, start getting money. At that moment, employees understand what exactly and for what purpose they are doing. But when growth needs to take the next step, the owner often lacks the determination or knowledge to rethink strategy and inspire his team to take the company to the next level.


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