Strategic Management Process
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 Process is used for Scanning to Implementation in any organization.
Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved. Evaluates its competitors and sets goals and strategies to meet all existing and potential competitors. And then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement.
Strategic management process has following four steps
1. Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps the managers to decide the future path of the organization.
Scanning must identify the threats and opportunities existing in the environment. In addition to strategy formulation, an organization must take advantage of the opportunities and minimize the threats.
2. Strategy Formulation- Formulation is the important process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose.
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision.
3. Strategy Implementation- Implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives too.
Implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance.
4. Strategy Evaluation- Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives. The managers can also assess the appropriateness of the current strategy in todays dynamic world with socio-economic, political and technological innovations.
Finally, Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results.
Diagram Of Components of Strategic Management Process
Components of Strategic Management Process
The Advantages of Strategic Management
- Discharges Board Responsibility.
- Forces An Objective Assessment.
- Provides a Framework For Decision-Making.
- Supports Understanding & Buy-In.
- Enables Measurement of Progress.
- Provides an Organizational Perspective.
- The Future Doesn’t Unfold As Anticipated.
- It Can Be Expensive.
Also read: https: //www.birdsviewinfo.com/rrr-rewards-recognition-and-reference-in-organizations/