The Strategic Management Process
What is the role of each component of the strategic management process in determining overall enterprise performance?
Strategic management process is defined as an organized way to perform calculated planning in the organization through initial measurement, systematic examination, strategy formulation, its realization and estimation. It also means a method by which managers choose a set of strategies for the business that will allow the method to accomplish better performance.
The five components of the strategic management process are as follow:
1- Define the business and the company mission
2- Setting strategic objectives and performance targets
3- Formulating a strategy to achieve the target objectives
4- Implementing and executing the strategic plan
5- Evaluating performance and reformulating the strategic plan.
The first and second components help analyzing the internal and external factors that influence the business. It provides direction to the company and help establishing a strategic plan.
The third one, strategy formulation is the procedure that helps decide the best way to achieve organizational objectives and therefore assist in identifying its purpose. Once the process of defining the business and setting strategic objectives is complete, business managers formulate corporate, business and functional strategies. The fourth component is seen as the most complex one because it deals with not only with deciding but also with assuming the administrative actions needed to switch the strategic plan into results.
The fifth and final component involves appraising internal and external factors that are the core of the current strategies. The fifth process ensures that the managerial strategy meets its goals and purpose.
Strategic Management & Strategic Planning Process. (2012). Retrieved from https://ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_01_01.asp
Strategic management process is defined as an organized way to perform calculated planning in the organization through initial measurement, systematic examination, strategy formulation, its realization and estimation. It also means a method by which managers choose a set of strategies for the business that will allow the method to accomplish better performance.
The five components of the strategic management process are as follow:
1- Define the business and the company mission
2- Setting strategic objectives and performance targets
3- Formulating a strategy to achieve the target objectives
4- Implementing and executing the strategic plan
5- Evaluating performance and reformulating the strategic plan.
The first and second components help analyzing the internal and external factors that influence the business. It provides direction to the company and help establishing a strategic plan.
The third one, strategy formulation is the procedure that helps decide the best way to achieve organizational objectives and therefore assist in identifying its purpose. Once the process of defining the business and setting strategic objectives is complete, business managers formulate corporate, business and functional strategies. The fourth component is seen as the most complex one because it deals with not only with deciding but also with assuming the administrative actions needed to switch the strategic plan into results.
The fifth and final component involves appraising internal and external factors that are the core of the current strategies. The fifth process ensures that the managerial strategy meets its goals and purpose.
Strategic Management & Strategic Planning Process. (2012). Retrieved from https://ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_01_01.asp