Management as a sphere of professional activity is aimed at achieving any goals or objectives by any enterprise or organization through the rational use of resources. Any company is guided by the market conditions, and the needs of the industry, and the needs of consumers, trying to maximize their profits. Management here not only adjusts goals, but also shapes them based on the basic needs of the organization and the characteristics of the market.
Any organization operates in an ever-changing market environment, which forces management to find ways to organically adapt the company to these changes. This is what strategic management does .
In general, any strategy can be defined as an innovative model of action to achieve the goals. Its content is a specific set of rules that helps to identify the main areas of activity, which should be focused on. The types of strategies in management are very diverse, which is due to various features of both the branches of economic life and the functioning of each particular company. The use of strategies is necessary in case of a sudden change in the macro environment.
The types of strategies in management are different in nature. Therefore, they distinguish offensive, offensive-defensive and defensive strategies. The offensive strategy is active, as it is directly related to the diversification of production or the intensification of the market. It is also the most risky, as it can ensure success only in the case of the right choice of niche. The defensive is connected with the centralization of management at all its levels in the event of a reduction in activity. An offensive-defensive strategy is aimed at correcting the shaky position of the organization.
The types of strategies in management are directly related to the organization. Therefore, the functioning strategies and development strategies that are characteristic of management are also characteristic of the organization. Therefore, the types of strategies in strategic management are based on common strategies.
Operational strategies are directly related to the organization’s activities on the market and the implementation of its goals. Any company can choose for itself either leadership in low costs, or differentiation, or focusing. If the price competition of the industry determines the internal development trends in it, then it is advisable for the company to apply leadership at low costs, saving on fixed costs. If the company has technological advantages, then it should choose the differentiation of its production, achieving the uniqueness of its products. Focusing allows you to achieve unconditional competitive advantages in a particular segment.
The growth strategy is inherent in newly created, young organizations that strive to take the leading position in the industry as soon as possible.
Of course, an optimal strategy does not exist, so each organization develops a unique strategy that takes into account all the features of the macro environment.
The final result of the organization’s activities is determined by its goals. There are various types of goals in management. Goals can be shared, reflecting the most important areas of activity, specific, which are developed in each unit in the context of common goals, strategic, aimed at solving large-scale tasks and tactical, which reflect the individual stages of strategic goals. Depending on the time, goals are divided into short-term and long-term.
Different types of management strategies help the organization make the best use of its advantages in order to occupy a leading position in the industry.