Strategic Management Process

The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy.

Strategic management is a set of managerial decisions and actions that determines the longrun

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. The study of strategic management, therefore, emphasizes the monitoring

and evaluating of external opportunities and threats in light of a corporation’s strengths

and weaknesses.

Benefits of strategic management to be:

• [?]Clearer sense of strategic vision for the firm.

• [?] Sharper focus on what is strategically important.

• [?] Improved understanding of a rapidly changing environment

Strategic management consists of four basic elements:

[?] Environmental scanning

Environmental scanning is the monitoring, evaluating, and disseminating of information

from the external and internal environments to key people within the corporation. Its purpose

is to identify strategic factors—those external and internal elements that will determine the

future of the corporation. The simplest way to conduct environmental scanning is through

SWOT analysis.

[?] Strategy formulation

Strategy formulation is the development of long-range plans for the effective management

of environmental opportunities and threats, in light of corporate strengths and weaknesses

(SWOT). It includes defining the corporate mission, specifying achievable...