Policy, Strategic Management, and Business Growth

Name: Policy, Strategic Management, and Business Growth
Author: Joseph Raynus

Learn the basics of strategic management and how to use it to grow your business

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Course: On-Demand

(uplifting music) These lessons will help you understand what strategic management is and why it's important for organizations to implement to stay competitive. You'll also learn how to identify the relationship between business policy and strategic management. The word strategy originates from the Greek word strategos or the art of the general. The main goal of every strategy and strategic planning is to win, beat the competition, and become a market leader. A good strategy should be able to answer the following questions. What is our market, or where do we compete? What makes us different, and what unique value do we deliver to the customer? What resources and capabilities do we utilize to deliver that value? And how do we sustain our capability to provide this unique value? The three major components of a good strategy are: analysis, formulation, and implementation. The first component, analysis, also called diagnostics, is performed on the challenges presented by the competition and is usually done by performing internal and external analyses of your company. The next component of a good strategy is to develop a guiding policy on how to deal with the competitive challenge. This is called formulation and usually presents overall corporate, business, and functional strategies. The final component, implementation, is the set of actionable items to carry out the company's guiding policies. All three components together represent the AFI Strategy Framework, which represents three interrelated actions that can assist management in developing a strategic plan and apply it. This can result in improved company performance and establish a competitive advantage. Strategy is the set of goal-directed actions a company takes to outperform the competition. It's actionable and executable, and it defines market challenges and how to deal with those challenges. A great strategy example is the furniture company IKEA. The company sells inexpensive furniture and has devised a strategy that it's competitors find difficult to imitate. This is because these competitors would have to completely change how they design and ship their furniture. What IKEA doesn't do, however, is compete in the high-end furniture business, and this is a good strategy for them. But what's a bad strategy? It's helpful to stay away from sweeping and general statements, like, "Our strategy is to be the best." "Our strategy is to be number one." Or, "Our strategy is to have the best customer service." Those aren't strategies, but work more as goals, tactics, and objectives, and they don't provide management with guidance for implementation. Having strategy discussions lays the groundwork for the study of strategic management. Strategic management integrates the AFI Framework to gain a competitive advantage and positions a company for better performance. But strategic management is a continuous process, so it doesn't end there. The process begins with answering the question: Why are our competitors getting more market share? To answer this question, your organization can continuously assess the business eco-environment where you're a player, analyze competition, modify your goals to respond to present and potential competition, and modify each strategy accordingly. Strategic management is also a change management process. It requires an understanding of how culture and the world changed, and how these changes can affect your enterprise.

Advanced Provider : Joseph Raynus 5 Lessons · 16m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

Strategic management is a continuous process that integrates the business and markets where the organization exists and regularly monitors its competitors. The organization can readjust its goals to meet the entire market demand and then redefine each strategy.

The role of the business executive is to create a strategic vision for organizational growth and have practical knowledge of how to plan and execute a set of strategic activities that support that vision. This approach requires knowledge, visionary leadership, strategic innovation, organizational resilience, and business analytics to successfully execute strategic management.

In this Policy, Strategic Management, and Business Growth course, you will learn what strategic management is and why it’s important for organizations to implement it. You’ll gain an understanding as to how and why it’s vital in helping your company stay competitive. You’ll also learn how business policy and strategic management are interconnected in order to amplify your business’ success.

What You'll Learn

Define strategic management and explain why organizations implement it
Construct a competitive strategy that supports organizational growth
Compare and contrast business policy and strategy
Evaluate the effectiveness of business policy
Apply strategic decision-making to guide organizational growth
Use business policy to guide management

Key Takeaways

Strategic management is a continuous process that integrates the business and the markets where the organization exists while regularly monitoring competitors.
An organization can readjust its goals to meet market demand and then redefine each strategy.
The business executive's role is to create a strategic vision for organizational growth and to plan and execute strategic activities that support that vision.
Executing strategic management requires knowledge, visionary leadership, strategic innovation, organizational resilience, and business analytics.
Business policy and strategic management are interconnected in order to amplify a business's success.

Frequently Asked Questions

What does this course cover?

The course covers what strategic management is and why it is important for organizations to implement it, how it helps a company stay competitive, and how business policy and strategic management are interconnected to amplify business success.

What will I be able to do after completing this course?

You will be able to define strategic management, construct a competitive strategy, compare and contrast business policy and strategy, and evaluate business policy effectiveness.

What topics are included in the lessons?

Lessons include Defining Strategic Management, Strategic Decision-Making for Organizational Growth, The Relationship Between Strategy and Policy, Using Business Policy to Guide Management, and a Test Your Knowledge assessment.

Who is this course relevant for?

It is relevant for business executives, whose role is to create a strategic vision for organizational growth and to plan and execute strategic activities that support that vision.

Professional Certifications and Continuing Education Units (CEUs)

Project Management Institute (PMI®)

Professional Development Units (PDUs): 0.5

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