Strategic Management Process

Strategic Management Process

Barbara Nelson

MGT/498

August 15, 2013

Strategic Management Process

To properly formulate strategy, a company must possess information on significant variables inside a business’s internal and external environments. Also, basic forces from societal as well as natural environments should be present. Other variables should include customers and competitors within the task realm. In most all cases, strategic management is vital for a company. The following information will give way to understanding the basic components of strategic management process, and also speak on General Motors strategic management practices.

Primary Components of a Strategic Management Process

“Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It focuses on the process of strategy synthesis, intent, and thinking role in strategic formulation” (Bloomberg 2013). The strategic management procedure will include four basic components, which are,

1. Environmental scanning

2. Strategy formulation

3. Strategy implementation, and

4. Strategy evaluation

Importance of Strategic Management in Companies

The strategic management process is crucial in setting forth a company’s mission, goals and procedures. This process ensures proper direction for employees, and also affords measurable time lines.“The strategic management processes are ways for businesses to build strategies that help the company respond quickly to new changes.” wiseGEEK, (2003-2013). Individuals also benefit from strategic management in the designation of duties for a business. Implementing a strategic management process also denotes uncertainties that may arise; a company needs to know how it must react to dynamic situations that may be unforeseen – contingency plans should be in place for these reasons. The significance of strategic management embraces all facets...