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Strategic Administration and its stages
The traditional establishment of objectives are instituted in the upper ranges of a company globally for the certain levels of the company in a hierarchical way. While the administration by objectives is the way in which the management of an organization, decrees goals for certain periods and thus be able to assess the execution of work by employees, and as a consequence to grow performance and productivity.
The main objective established by the president and the division manager in the Costco company isquality. In order to achieve it, programs and activities are established for each area of the company and thus contribute together with the help of the person in charge or supervisor of each area, so that it gives them the necessary support or clarification at any time. So that the performance of each of the employees will be evaluated to be able to designate whether the activities are properly doing to boost the growth with the appropriate measures for each area or the rethinking of objectives if necessary in conjunction with constant trainingintegrating efforts between managers and subordinates in a certain period.
The strategic administration is to combine the dictates that are available and thus evaluate the performance of a long -term company using the 4 phases of the administrative process.
- Determine a current mission of the organization, objectives and strategies. Every company must implement a mission, in which we must set the main objectives to which we must reach as a company, that is why the number one step is to raise a purpose that dictates to where we are going and what we want to meet.
- Perform an external analysis. At this stage an analysis of the environment of our company must be carried out, since the context where it develops can have several oppositions that affect us, and a previous solution must be found in case of needing it. “In this type of analysis, the manager must examine the economic, demographic, political/legal, sociocultural, technological and global components in order to detect any changes or trends.”(Robbins – Coulter, Administration, 2010).
- Realization of an internal analysis. This stage is similar to the previous.
- Formulation of strategies. In conjunction with the previous steps, having the knowledge of the environment as of the resources, capacities and skills of which we have, managers must use strategies that help us to arrive our objective determined exploiting all our goods and means.
- Implementation of strategies. Followed by the formulation, it will be necessary to implement the strategies duly to prevent the company from being affected.
- Evaluation of results. Once the strategies have been implemented, we must measure how useful and beneficial they were for the company and in this way take into account or reformulate new strategies that are more useful in case they do not work.
- SWOT is an analysis to be able to highlight the strengths, opportunities, weaknesses and threats in our company, and thus be able to properly determine strategies that benefit us without neglecting any relevant matter:
- Strengths. Is to identify all our resources when carrying out an activity.
- Opportunities. Are the positive predispositions in our environment or context.
- Weaknesses. They can be the activities that are not carried out correctly or those resources that we need, but we do not have their disposition.
- Threats. They are the negative stages or stages that may arise in our company.
The competitive advantage is based primarily on the value that a company can develop, taking into account its strategies, skills and skills to be able to position themselves at a high level in the market.