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.
The Strategic management is help to accomplish the goals and intention for organizations recourses and future plans by following the important elements, which are planning, controlling, analyzing by study both internal and external strengths and weaknesses.
As it were, Strategy management is the procedure of indicating an association's goals, creating strategies and arrangements to accomplish these destinations, and apportioning assets in order to execute the arrangements. It is
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
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).
What is Strategic management? Strategic management can be used to determine mission, vision, values, goals, objectives, roles and responsibilities, timelines, etc.
"Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations" (Johnson and Scholes, 2010)
It is hard to define a “strategy” in one sentence but it could be defined as the “positioning an organization for competitive advantage”. Its main objective is to create value for stakeholders by providing customer value. (pg. 2) Strategies always change as the context in which strategy is developed always changes. For example, the evolution in the past fifty years has shifted from an industrial economics to a resource-based perspective to human an intellectual capital perspective. The can most definitely change strategies for business owners. New business ideas and concepts are created every day. A lot of different efforts are put into a corporation in order to enhance competitiveness. Sustainable superior performance can only be achieved if a company can reserve differences between itself and its competitors.
Strategy is the pattern of decisions determining the organization’s objectives, purposes, or goals. It outlines the principal policies and plans for achieving those goals, and clearly defines the range of businesses the organization has to pursue. Strategy as a pattern of decisions also highlights the nature of human and economic organization it intends to be, and the nature of the economic and noneconomic contribution it intends to make towards its stakeholders, mainly, the shareholders, customers, employees, and communities[1].
Strategy is nothing but a plan to bring up with new and innovative ideas for the future development. Strategy has become an often word that applies to many circumstances and area of business. There are many strategies like sales, innovations, marketing, HR, etc. strategy will change the shape of the company objectives and it will help to reach our goals and aims perfectively. Every organization must need a strategy plan, without strategy plan they will not get any success. Strategic planning is very important to every organization, because through strategic plan we can reduce the cost of the product, increase efficiency and save the time of the project.
Strategic management is the process of formulating and implementing strategies in organizations. Strategy formulation is the first strategy in strategic management, which is the process of creating strategy and that involves assessing existing strategies, develop new strategies and strategic plans. The second strategy in strategic management is called strategy implementation, which is the process of allocation resources and putting strategies into action.
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
Strategy: a plan in place to maintain and establish competitive advantages compared with competitors and boost relationship with clients (Daniell, 2004). Business strategy has to be adaptable to the changing environment, including internal and external environment of the enterprise. Enterprise strategies must be consistent with the resources of the business and on the basis of close association with the remaining 6 factors in the model (Mckinsey, 2015). An organization can
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.
A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.