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Components of a Strategic Management Process
The process of strategic management involves four primary components. These components define the steps conducted in a chronological sequence when designing a new strategic management plan.
Environmental scanning: this is described as the process of gathering, analyzing and offering information for strategic reasons. It assists to scrutinize the internal and external elements that influence a company. After the environmental scanning process, management evaluates it regularly and strives to improve it.
Strategy formulation: this is a process whereby the best course of action is described for achieving organizational goals and thus, accomplishing organizational purpose. After scanning the environment, the organization formulates business, corporate and functional strategies.
Strategy implementation: this is the process of making the strategy work as intended. The chosen strategy is put into action. This process entails designing the structure of the organization, distributing resources, formulating decision-making process, and human...
It involves key activities like internal and external factors appraisal based on current strategies and performance. Evaluation calls for appropriate remedial actions to ensure the organizational strategy and its implementation fulfills the organizational goals (Bateman & Snell, 2007).
Why a strategic management process is needed for a company
Every company has both a strategy and action agenda for implementing it. However, sometimes, management openly states strategic plans and at times they remain implicit the company's pattern of operation and management decisions. Some companies choose courses of action after an exhaustive analysis and others emerge from historical accidents and haphazardly from chance occurrences of the business. A company's recipe of strategic approaches and actions is driven by all the knowledge acquired by the company in the assessment of what the future holds, environmental analyses and evaluation of what worked and what did not in the past. Every…
References
Bateman, T.S., & Snell, S. (2007). Management: Leading & collaborating in a competitive world. Boston, Mass: McGraw-Hill/Irwin.
Orcullo, N.A.J. (2008). Fundamentals of strategic management. Manila, Philippines: Rex Book Store.
In conclusion, these two books and their related concepts show how critical it is for a strategist to consider both the qualitative and quantitative aspects of a business model. There must be a balance of the tasks and vision ownership to the overall measured results of strategies as well. Both books together forma strong foundation for long-term planning that takes into account the need for change management at the executive
Strategic Management Case Over the last 20 years, the Balance Scorecard has been used as an approach by corporations to improve their competitiveness and ability to adapt to changes inside the industry. This is based on several fundamental principles to include: financial, the internal business process, learning / growth and the customer. Financial is when the firm is looking at tactics that will measure the monetary impact of the strategy on
In the context of many organizations their cultures act as the central reference point for everything from how meetings are held to how people are spoken to, and certainly influence the level of innovation achieved (Markides, 2004). Cultures then can be either constraints or catalysts of growth for any company. It is in how they are defined that makes the difference. For any strategy to be effective however it must
(J & J. Official Website, 2005) This is a wise description in that, rather than specializing in one arena of health care, Johnson and Johnson's diversity of products and character buffets it against some of the specific regulatory turmoil that has affected largely pharmaceutically-based health care companies, such as Pfizer and Merck. The stress on local managerial control also allows the company's diversity to be regionally specific and focused,
Strategic Management The Case for Diversification Deltacom/Earthlink is facing a challenging operating environment. As a regional player in an intensely-competitive market, we face an uncertain future. We acquired Deltacom in order to facilitate future growth, but a quick look at our financials indicates that our growth has flatlined and our profits declined to almost nothing last year (MSN Moneycentral, 2013). One of the issues is that there was considerable overlap between Earthlink
Culture is no small force; it shapes individuals and impacts tremendously on politics (McCartney, 2004). Nations are made up of people, who, from the moment of their birth, are deeply and profoundly shaped by the cultures and customs from whence they came (McCartney, 2004). Because history and culture are two such inseparable animals, it's worthwhile to take a brief look at the history of the Bahamas. Brief History Many history scholars believe