The profit oriented organizations have a wider variation with those of the non profit oriented organizations. The strategic management planning varies a lot in relation to the nature of the business in question. The profit related organization will make strategic management policies which are meant to bring about the highest profit margins possible to the organization they therefore focus on the strategies which will ensure that the policies made on the plans are meant to reduce the costs as much as possible and realize the business revenue to the highest possible levels. The non profit oriented organization do not have much focus on the strategies which would bring much revenue to the business, but would rather focus more on the activities which the business would like to undertake in the given financial year.
Areas of importance to strategic management
In case the business management will, not make effective strategic management plan in the business, the following areas will be most hit;
- The planning department will not be able to plan their activities in the organization
- The personnel department would not be able to precisely know the business policies to pass forward to the business employees.
- The marketing department will not be bale to plan for the necessary market coverage to be covered in the given financial year.
- The production department would not be able to precisely synchronize the total products to the required company policy requirement
- The financiers and the financial departments would not be able to provide for the finances which the company may require for the efficient operation in the given financial year.
Importance of company mission statement
The mission statements therefore not only give the correct direction which the business is to go but also gives the best alternatives which the business performance can be evaluated and controlled against. The presence of a functional company mission statement will be manifested by the efficiency in the execution of the company plans and policies (Kazmi, 2008). The company will at the same time have a sense of direction and well outlined ways of evaluating the performance.