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A Review of Strategic Management Process |
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“The Strategic managementis defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. A Strategic Management processis the flow of information through interrelated stages of analysis toward the achievement of an aim.”
The key components of a Strategic Model include:
- Defining the company mission (Why we exist?), and considering the social responsibility (How companies intends to contribute to the societies that sustain the company).
- Analysis of internal and external environment – Environmental Analysis
- Identifying strategies that are most effective at building sustainable competitive advantage based on key value chain activities and capabilities—Strategic Analysis and Choice.
- Arriving at a list of long-term objectives and identification of Generic and Grand Strategies
- Creating short-term objectives, functional tactics and refining policies that empower actions
- Restructuring, Reengineering, and Refocusing the organization
- Tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments –Strategic Control and Continuous Improvement.
Strategy formulation and implementation are sequential and a change in any component will affect several other components. Therefore, the use of strategic model or process is important to manage the flow of information from initiation to planning to implementation and control in order to achieve the company’s objectives.
Reference:
Pearce-Robinson. (2004). Strategic Management. The McGraw−Hill Companies
Cite this as:
YouSigma. (2008). "A Review of Strategic Management Process." From http://www.yousigma.com.