Strategic management is the set of actions and organizational decision that determine the long-run running of an organization. It involves all the four functions of management. Strategic policies provide a common vision for the whole association. The strategic management procedure is a series of steps that devices the strategic planning, execution and evaluation (Gilkey, 1999).
- Selection of the goals and mission
- Analysis of the organization's external viable environment to identify threats and prospect.
- Analyzing organization's internal operational procedures to identify weaknesses and strength.
- Select the strategies or ways to correct the weaknesses and develop the organization's strengths in so as to counter external threats and take advantage of external prospect.
- The last point is to put into practice those selected strategies and ways to reach the organizations goals and missions.
The component that is the most difficult for managers to perform is the external analysis. Analyzing the environment is a significant step in strategy management. Managers in every organization ought to do external analysis. They should to know, for example, how the competition is doing, what pending legislation may have an effect on the organization, or what the manual labor supply is like in regions where it operates. Managers ought to examine both the general and specific environments to see what changes and trends are occurring. After examining the environment, managers have to assess what they have learned in terms of prospects that the organization can make use of, and threats that it ought to counteract. The same environment can present prospects to one organization and create threats to another in the same trade due to their different capabilities and resources.
Company Mission, vision, and values of statement define the organization’s values, purpose, visionary goals, market, product, and technological areas of importance in a way that reflect the priorities and values of the tactical decision makers (Luftman, 2004). Social accountability is a significant consideration for an organization’s strategic decision makers because the mission statement should articulate how the organization aims to contribute to the society.
A vision for an organization that operates globally would be as follows-“Our vision is for a compassionate, healthy, vibrant world. Our mission is to ensure the society Benefit Sector has convenient tools for achieving those visionary ends. This is by engaging, convening, supporting and mobilizing the sector, to make certain we all have the resources to make our world a wonderful place”.
Social responsibility in-A company exists in a society. In this respect, it has an ultimate social accountability in conducting its operations and discharging its duties. Ethics are procedures and rules that outline what is bad or good behavior. An ethic-centric company follows ethical beliefs in overseeing its day-to-day operations and conducting business. Such an organization integrates ethics in its strategy formulation process.
All organizations should include social responsibility in their mission and vision, even if it may have an adverse effect on maximizing shareholder wealth. This is because Companies ought to have mission statements that evidently define anticipated shareholder returns and they ought to regularly evaluate performance in terms of the anticipated returns. If the main motive for an organization’s existence is profit making, then it stands to reason that expectations of profit ought to be included in the organization's vision. This means that the organization should reach an agreement about which aspects of the organization’s profit performance ought to be measured.