Strategic Management Components
Strategic Management Components
Your Name
MGT/498
April 4, 2014
Your Instructor
Strategic Management Components Strategic management is not just a set of boring rules in a book. It is a philosophy. An approach to business that can determine if the business is feasible, and once the business is up and running is the basis of consistent gains in profit and focus on the primary goals of a company (Clayton, 2014). The strategic management process is a guide to help all members of an organization stay in unison by understanding the focus and the plan of the company. It is the overall plan to ensure that a company is long lasting and durable despite any weakness the company might have. Wheelan and Hunger stated, “Strategic management is a set of managerial decisions and actions that determines the longrun performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2010, p. 5). All companies need to use a strategic management plan. Initially all companies start with a goal in mind. Environmental scanning consists of information toward the vision of a company. Analyses of the needs of the business, any competition that is in the similar market, and issues external and internal are evaluated. Strengths and weaknesses are studied to determine how strong the company is and how the weaknesses are protected. Strategy Formulation is building the overall plan of a company. Strategy formulation consist of deciding the mission, objectives to move toward the mission objectives, strategies needed to complete the objectives and policies which will affect decision making (Wheelan and Hunger, 2010). Once the environmental scanning is complete this information is used to formulate the strategy. Priorities are decided along with what resources are available to implement the strategy. Strategy implementation includes
Your Name
MGT/498
April 4, 2014
Your Instructor
Strategic Management Components Strategic management is not just a set of boring rules in a book. It is a philosophy. An approach to business that can determine if the business is feasible, and once the business is up and running is the basis of consistent gains in profit and focus on the primary goals of a company (Clayton, 2014). The strategic management process is a guide to help all members of an organization stay in unison by understanding the focus and the plan of the company. It is the overall plan to ensure that a company is long lasting and durable despite any weakness the company might have. Wheelan and Hunger stated, “Strategic management is a set of managerial decisions and actions that determines the longrun performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2010, p. 5). All companies need to use a strategic management plan. Initially all companies start with a goal in mind. Environmental scanning consists of information toward the vision of a company. Analyses of the needs of the business, any competition that is in the similar market, and issues external and internal are evaluated. Strengths and weaknesses are studied to determine how strong the company is and how the weaknesses are protected. Strategy Formulation is building the overall plan of a company. Strategy formulation consist of deciding the mission, objectives to move toward the mission objectives, strategies needed to complete the objectives and policies which will affect decision making (Wheelan and Hunger, 2010). Once the environmental scanning is complete this information is used to formulate the strategy. Priorities are decided along with what resources are available to implement the strategy. Strategy implementation includes
References: Clayton, J. (2014). The Five Stages of the Strategic Management Process. Chron. Retrieved from http://smallbusiness.chron.com/five-stages-strategic-management-process- 18785.html Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy (12th ed.). Upper Saddle River, NJ: Pearson Education.