BU7006 Strategic Financial Management Assignment – UK.

 

When it comes to defining strategy, there are some key points that need to be addressed. It's first and foremost an action plan. It's not a good strategy to have a simple notion or idea without a framework. A simple idea, such as developing the human resources department of a business, is not a strategy. A strategy is only a framework that outlines how to achieve it. A strategy is also output-based. A plan of action that has a few clear and predetermined objectives is not a strategic plan. Thirdly, the strategy must be goal-driven.

BU7006 Strategic Financial Management Assignment – UK.

The primary purpose of strategy is to drive an organization's resource in an objective manner. There is another important aspect to an organization's strategy. A vision is required to accompany the plan, its execution and objectives. Without a vision of the long-term effects, any strategy will not be as successful as you expect.

A strategy is made up of two components, not two processes. First, there is strategic thinking. Ideation is the first step. The organization will brainstorm ideas for achieving the goal after defining a vision, goals and a mission. Strategic thinking is a part of critical thinking that is oriented towards achieving a goal.

The next step is to put the plan into action. The second part is strategic planning, where the organization develops a concrete blueprint to guide the ideas developed through strategic thinking. Both parts are summed up in one function: execution. It is for this reason that strategic thinking must always be adaptable, so it can change as new problems and challenges arise on the way to reaching the company's objectives.

A good strategy is the basis of corporate development and growth. A well-planned strategy over the long term can put a company ahead of its competition. A company can face a financial catastrophe if the strategy fails. There are two approaches to corporate strategies that should be discussed in this context - prescriptive and emergent.