Strategic Management Process According to Managementstudyguide.com, Strategic management process has various definitions. A process by which the manager creates a choice set of strategies for the organization that will aid to achieve better performance. It is a continuous process that evaluates business and industries in which the organization is involved. Paul Lines (2008) states that, “Strategy is a plan that the business used in order to reach its long-term goals and objectives. An essential element of a strategic plan is to achieve competitive advantage commercially, politically and socially. The company needs a strategic management process in ensuring its success but all plans should be managed efficiently and effectively. Strategic management is effective when resources match stakeholder needs and expectations. It consists of four main components and these are as follows: A. ENVIRONMENTAL SCANNING Environmental scanning is a manner of collecting, examining, and providing information for strategic purpose which helps in analyzing internal and external factors influencing the organization. (Johnson and Scholes, 2005) It provides the information necessary to create a company mission statement. Observation and communication are two very effective methods. After executing environmental analysis process it is significant to evaluate whether the current strategy is appropriate. If the strategy is inappropriate, then the organization needs to do some changes and it should be done in a continuous basis and strive to improve it. B. STRATEGY FORMULATION Strategy formulation is a process of choosing the best course of action in accomplishing the organization’s objectives and achieving its purpose. Strategy formulation involves a c... ... middle of paper ... ...ion are as follows: • Continuous upgrade for efficient and environment friendly manufacturing technology. • Monitor and improve the efficiency and effectiveness of all business processes. • Promoting professional and flexible work environment, teamwork and innovation through employee participation and process ownership. • Initiates customer orientation at all levels within the organization. • Monitor and economize the cost of quality. Strategy Evaluation The company evaluates their performance in the market through SWOT and PEST analysis. Coca Cola implements its strategies based on different market situation as well as customers’ response. They will set up tactical goals to be in the strong position in the global market. Company develops a control framework for their overall control of management gaining over their customers by providing satisfaction.
It is important for every company to do environment analysis that is scanning the environment so that it may identify its threats and opportunities and improve its planning process.
• Strategic management involves both strategy formation, called it content) and also strategy implementation, called it process.
Strategic issues have been defined as ‘environmental trends and possible events that may have a major and discontinuous impact of the firm’ and early research focused on identifying and assessing these important phenomena (Ansoff, 1975, p. 24-25, 1980). Later scholars introduced the concept of strategic issue diagnosis: the evaluation and infusion with meaning of environmental data with the intent of generating organizational momentum to respond (Dutton & Duncan 1987b; Dutton et al., 1983; Dutton & Jackson, 1987), a process that involves the following steps (Julian & Ofori-Dankwa, 2008). Decision makers scan the environment in attempts to detect signals of potential importance to the firm, collating and reifying a variety of related stimuli into a “strategic issue” (Dutton et al., 1983). This issue joins similar issues in the “strategic issue array,” the list of different strategic issues being potentially considered at any given time (Dutton & Duncan, 1987a; Dutton, 1997). Based upon their interests, beliefs and inclinations, different individual executives and managers, as well as groups, attempt to sell, promote and champion a particular strategic issue’s significance by means of different diagnoses (Dutton & Ashford, 1993; McMullen et al., 2009). By means of analysis and negotiation, the upper echelon of the firm comes to a more or less commonly agreed upon diagnosis of the issue in question as to its nature and possible effects (Dutton et al., 1983; Dutton, 1993, 1997). Once more or less established, the strategic issue’s diagnosis influences the formulation and implementation of a response, which may unfold over time and which itself may lead to further altered diagnoses (Dutton, 1997; Chatto...
The next major step in environmental analysis is analysis the organization¡¯s competitive position that is how it stands in relation to other organizations competing for the same resources, or customers, as it.
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
The next part of Audit process is to understand the business environmental aspects of the company. As part of the marketing audit project the author is going to analyze and provide detailed information on the following key environmental aspects
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization (Barnat, 2004). For a business to succeed, it is important to study the business environment of the firm that consists external and internal influences that affect the firm’s decisions and performance (Grant, 2010). Environmental scanning includes the assessment of Macro and Micro environmental analysis.
If asked what strategic planning is one could interpret it as simply a road map that can guide the organization in the right direction. It is very unlikely that an organization would know which direction to take without a sense of direction. Managers are faced every day with decisions that have a major impact on the direction the organization must take, therefore, strategic planning can play an important role in guiding managers in the right direction. In other words strategic planning is a tool that management can use to give them a sense of direction that will guide them in doing a better job and to ensure that all the members of the organization are working toward the same goals
There are many external environmental factors that can affect your business. It is prevalent for managers to assess each of these factors proximately. The aim is always to take better decisions for the firm’s progress. Some mundane factors are political, economic, gregarious and technological (kenned as PEST analysis). Companies additionally study environmental, licit, ethical and demographical factors.
The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world. The company follows the latest strategic research and evaluation methods to formulate such strategic policies that helps in not only meeting the customer expectations and desires but also achieving various organizational goals and objectives.
The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization.
What I benefit from this course strategy management class is knowing. The strategic management is consisting of the analysis, decisions, and actions an organization undertakes to create and sustain competitive advantages. strategic management analyses. concern with overall objectives, involves multiple stakeholders, incorporates short and long term perspectives, recognizes tradeoffs between effectiveness and efficiency. The strategic management analysis, formulation, and implementation the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
Environmental analysis is a strategic tool. It is a process of identifying all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.
The strategic management process works to achieve a strategic competitiveness over other organisations within the same industry. This is done by successfully producing a value-creating strategy. (Hanson, Dowling, Hitt, Ireland & Hokisson et al, 2008)