Summary
Strategic management is an ongoing strategy that organizational leaders need to undertake if they want to support performance and deliver sustainable results. The initiative revolves around setting attainable objectives, monitoring and analyzing the recorded level of competition, improving internal structures, and ensuring that business processes are aligned with the outlined mission and vision. This form of management differs significantly from the common day-to-day management in a number of ways (Wan et al., 2022). First, the idea of day-to-day management focuses on normal operations and leadership processes intended to increase organizational profit, while strategic management seeks to improve and sustain competitiveness. A good example of strategic management would entail the introduction of a new change or project in an effort to improve overall performance and competitiveness (Wan et al., 2022). For day-to-day management, the best example would be that of a leader promoting desirable activities and culture to deliver profits.
Second, strategic management calls for increased responsibilities to achieve outlined goals within a specified period, while day-to-day management entails routine activities in a given firm. The best example of strategic management is the introduction of a new project whereby key participants need to focus on their specific roles. Third, successful strategic management requires proper planning, controlling, and monitoring, while day-to-day management calls for continuous supervision to promote a wide range of normal operations (Wan et al., 2022). A departmental leader guiding his or her employees to complete their tasks diligently and achieving much-needed positive results would fall under the day-to-day management category. Despite the nature of the identified differences, these two leadership approaches and tactics will work synergistically to ensure that the targeted firm achieves most of its business aims.
Internal Environment and Corporate Strategy
Corporate strategy is a business initiative intended to define an organization’s values, goals, and the best initiative for remaining competitive and sustainable in its sector. This continuous process requires that leaders inspire and guide their employees to respond effectively to the changes experienced in the market. The internal environment is critical since it dictates the process of developing and implementing a workable strategy. In their study, Santoso et al. (2020) identified financial resources, equipment, and facilities as key strengths that could make it possible for managers to develop practical business processes. The absence of such factors could be categorized as a weakness capable of hindering strategy formulation. Adequate human resources are critical attributes capable of supporting the formulated corporate strategy. The involved personnel would possess the relevant competencies and apply them to promote business performance.
Managers tend to create the best organizational structure in accordance with the skills of different leaders. Many companies develop appropriate departments and units in accordance with the available resources and the anticipated goals. The hierarchical arrangement will ensure that specific individuals are required to complete certain tasks, such as decision-making, reporting, and problem resolution. These efforts will work synergistically to ensure that all leaders and followers understand their responsibilities and support the established corporate strategy (Santoso et al., 2020). Product lifecycle is another area for developers of corporate strategies to take seriously. The distinct phases follow each other in this order: development, introduction, growth, maturity, and decline stages (Prasad et al., 2019). Depending on the existing product stage, the leaders should develop a corporate strategy that is capable of maximizing sales or consider the idea of diversification. If these aspects of the internal environment are inadequate, missing, or poorly coordinated, chances are high that the developed corporate strategy will fail.
References
Prasad, R. K., Jha, M. K., & Verma, S. (2019). A comparative study of product life cycle and its marketing applications. Journal of Marketing and Consumer Research, 63, 62-69. Web.
Santoso, R., Purwoko, B., Umar, H., & Renwarin, J. M. J. (2020). The effect of business environment on the corporate performance through business strategies in the construction service industry in DKI Jakarta, Indonesia. International Journal of Managerial Studies and Research, 8(4), 1-12. Web.
Wan, J., Wang, L., Saade, R., Guan, H., & Lun, H. (2022). Empirical analysis of strategic management in inter-governmental organization. Administrative Sciences, 12(3), 83-108. Web.