Explain the strategic management process

Thorough mission statement acts as guidance for managers in making appropriate Rothaermel, p.

strategic management approach

Measuring performance is another important activity in strategy monitoring. How is chess relevant to the study of strategic management?

Strategic management process pdf

Make sure to identify both the strengths and weaknesses of your organization as well as any threats and opportunities that may arise along the path. This involves a set of management decisions and actions that result in formulating and implementing strategies that determine the performance and success of the organization. Managers should evaluate the results in order to compare the achievements and corrections, if needed. Formulation The output of this phase should be a clear set of recommendations, with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategy and plans for accomplishing them. Goal Setting The first part of strategic management is to plan and set your goals. How far to diversify? Strategic management helps an organization see where it currently stands, where it will be in the future staying on the current course, and where it would like to be in the future. This involves developing specific strategies and actions. Your final plan should be a numbered set of the major action steps necessary to effect the strategic change s you have recommended, considering the key six questions plus topics given earlier in this paragraph. Figure 1. The focus is primarily on large-scale, future-oriented strategies that allow an organization to achieve its objectives, considering the environment in which it operates.

Different models of the process There is no universal model of the strategic management process. Business' vision answers the question: What does an organization want to become? Managers may be moved from one functional area to another or asked to manage a new team.

However, for the major case reports in this course, your plan can be much simpler. As we consider business cases, and actual strategic management situations, we are primarily trying to answer a framework of questions such as: What are the current purposes and strategy of the firm?

Because business and economic situations are fluid, it is critical in this stage to develop alternative approaches that target each step of the plan. Key Takeaways Strategic management is a process that requires the ability to manage change.

importance of strategic management

This type of strategy is used when strategic business units SBUdivisions or small and medium enterprises select strategies for only one product that is sold in only one market.

The starting point of the process is initial assessment of the firm. Once prioritized, begin formulating the strategy. If those actions are not successful, then repeat the strategic management process.

Strategy formulation is the next step in the strategic management process.

components of strategic management process
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Strategic Management Process