Essay On Strategic Management Process

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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.

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