The Nature of Strategic Management and Firm Performance
Business performance defines the success of an organization. Attaining this performance, on the other hand, calls for a mixture of many factors to be put into place for all of them to be successful. The CEO seats at the helm of all the operations of the organization activities and, therefore, has a role in ensuring that the performance of the organization is satisfactory. However, the CEO cannot do all this alone. They need their teams so that all the operations of the business can be coordinated to be directed towards the common goal of excellent performance. One of the ways that organizations, through the leadership of CEOs, have managed to effective at getting good performances is through the adoption of strategic management. This is a form of management where all the resources are directed towards meeting one common goal. In the synthesis paper, the focus is placed on the critical role played by strategic management in human resources and marketing as the means of promoting business success.
Strategic human resource management has a direct correlation with the performance of the organization. This approach of managing human resource management can be tackled in two proven ways that can promotethe performance of the business. One of the way is recruitment and hiring. The human resource department should be strategic in their recruitment, where the skills and knowledge looked from the employees should match the performance that the organization is looking out for. More to this is that the organization should have a well-defined compensation and reward system that is directed towards enhancing the performance of the organization (Knies, Boselie, Goud-Williams &Vandenbeele, 2015). These two measures, however, will not be effective if the top management, mainly the CEO. There is a need for the administration to be consistent with the management of human resources towards the strengthening of the performance of the business.
The second element of strategic management is marketing. Marketing is pivotal for the performance of the business by ensuring that the products and services of the organization meet the target audience (Katsikeas, Morgan, Leonidou&Hult, 2015). Strategic marketing is a form of marketing that is not just about making the customers aware of the organization’s products but rather ensuring that the products and services of the business fall into the hands o customers with the interest and ability to purchase the items being sold. Strategic marketing entails the positioning of the business in a strategic manner where it can easily interact with the target market. One of the ways upon which a strategic market is attained in the modern business world is through globalizing the operations of the business. Through venturing into the new markets, the business can be strategic by bringing the services and products closer to the customers and this is one of the unique ways of becoming different compared to other competitors.
Strategic business management is any form of management that is aimed towards ensuring that all operations and functions of the business are directed toward meeting a specific goal. For an organization that is aiming towards performance, strategic business management should be directing all the activities of the organization towards enhancing business performance. The use of strategic human resource management and strategic marketing are perfect examples of strategic business management. With good leadership, these strategies are sufficient to propel the business towards excellent performance.