Strategic Management Process
Strategic Management Process
MGT/498
October 28, 2014
Strategic Management Process
Every company wishing to have success must have a plan, purpose, and goals. With this in mind, strategic management is the beginning of a successful model and gives an organization and its managers a course to follow. “Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation.” (Wheelen, T.L, & Hunger, J.D., 2010, p. 5). Strategic management is important because it allows managers to better deal with the fast changing business world. The strategic management process provides managers with a logical, objective, and systematic method for making decision in a corporation. Strategic management allows a company to be more competitive because by providing the necessary structure for successful adaptation, the organization is able to improve performance, which can lead to the establishment of a greater competitive advantage.
Strategic Management Model
Regularly used in businesses is a strategic model with various phases and components called the Strategic Management Model. The strategic management model begins with a company’s mission and vision statement to articulate the company’s values and reasons. The model consist of five elements, environmental scanning, strategy formulation, strategy implementation, evaluation, and control. Within these five elements we find sub-elements. First, environmental scanning, the gathering of information from external opportunities and threats as in, natural environment, societal environment, and task environment, followed by internal strengths and weaknesses as in, structure, culture, and resources. Second, strategic formulation, developing long-range plans consisting of mission, objectives, strategies, and policies of the company. Third, strategy implementation, putting strategy into action with programs, budgets, and procedures. Fourth and fifth within the model is evaluation and
MGT/498
October 28, 2014
Strategic Management Process
Every company wishing to have success must have a plan, purpose, and goals. With this in mind, strategic management is the beginning of a successful model and gives an organization and its managers a course to follow. “Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation.” (Wheelen, T.L, & Hunger, J.D., 2010, p. 5). Strategic management is important because it allows managers to better deal with the fast changing business world. The strategic management process provides managers with a logical, objective, and systematic method for making decision in a corporation. Strategic management allows a company to be more competitive because by providing the necessary structure for successful adaptation, the organization is able to improve performance, which can lead to the establishment of a greater competitive advantage.
Strategic Management Model
Regularly used in businesses is a strategic model with various phases and components called the Strategic Management Model. The strategic management model begins with a company’s mission and vision statement to articulate the company’s values and reasons. The model consist of five elements, environmental scanning, strategy formulation, strategy implementation, evaluation, and control. Within these five elements we find sub-elements. First, environmental scanning, the gathering of information from external opportunities and threats as in, natural environment, societal environment, and task environment, followed by internal strengths and weaknesses as in, structure, culture, and resources. Second, strategic formulation, developing long-range plans consisting of mission, objectives, strategies, and policies of the company. Third, strategy implementation, putting strategy into action with programs, budgets, and procedures. Fourth and fifth within the model is evaluation and
References: Wheelen, T.L, & Hunger, J.D. (2010). Concepts in strategic management and business policy (12th ed.). Upper Saddle River, JN: Pearson Education Versar, Incorporated, 2014. Retrieved from www.versar.com