Strategic Management Process - Meaning, Steps and Components
The strategic management process means defining the organizations strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises its competitors; and fixes goals to meet all the present and future competitors and then reassesses each strategy.
Strategic management process has following four steps:
- Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it.
- Strategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies.
- Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organizations chosen strategy into action. Strategy implementation includes designing the organizations structure, distributing resources, developing decision making process, and managing human resources.
- Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives.
These components are steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situations requirement, so as to make essential changes.
Components of Strategic Management Process
Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with the other components and that this interaction often happens in chorus.
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- Strategic Management - Introduction
- Strategy - Definition and Features
- Components of a Strategy Statement
- Vision & Mission Statements
- Strategic Management Process
- Environmental Scanning
- Strategy Formulation
- Strategy Implementation
- Strategy Formulation vs Implementation
- Strategy Evaluation
- Strategic Decisions
- Benefits of Strategic Management
- Business Policy
- BCG Matrix
- SWOT Analysis
- SWOT Analysis of Google
- SWOT Analysis of Starbucks
- SWOT Analysis of Blackberry
- Personal SWOT Analysis
- SWOT Analysis of Amazon
- SWOT Analysis of IKEA
- SWOT Analysis of Nike
- SWOT Analysis of Microsoft
- SWOT Analysis of China Mobile
- Competitor Analysis
- What is Competitive Advantage ?
- Human, Social, and Intellectual Capital as a Means of Competitive Advantage
- Porters Five Forces Model
- Blue Ocean Strategy and its Implications for Businesses
- Overfished Ocean Strategy: How to Drive Growth and Attain Profitability
- Porters Five Forces Analysis of the Airlines Industry in the United States
- Porters Five Forces Analysis of Samsung
- Porters Five Forces Analysis of Virgin Atlantic
- Porters Five Forces Analysis of China Mobile
- Strategic Leadership
- Some Pitfalls to be Avoided
- Corporate Governance
- Business Ethics
- Social Responsibilities of Managers
- Core Competencies
- Core Competency Theory of Strategy
- Ansoff Matrix
- Routes to Strategic Growth
- Diversification as a Viable Corporate Strategy
- 5 Configurations of Strategic Management
- Role of Planning, Plans and Planners
- Reasons for Avoiding Strategic Planning
- Strategic Management for the Millennials
- Strategizing for the Future
- PESTLE Analysis of the Global Aviation Industry
- PESTLE Analysis of Starbucks
- PESTLE Analysis of Samsung
- SWOT Analysis of Unilever
- Business Strategies to Beat the Downturn