It153

Krysten Coughlin

what are the main components of the strategic management process?

A strategy is an action that a company takes to attain one or more of its goals. It can be done on a yearly basis, such as my company. We have our overhead manager or director compile a list of goals they want to obtain for the upcoming year and everyone that falls beneath the director, or this manager for the department has similar to goals and their own individual goals as well.

A company has a competitive advantage over its rivals when it is more profitable than the average for all firms in its industry. It has a competitive advantage and is able to maintain an above average over a number of years. This would relate to Boeing and Airbus. Both are competitive but Airbus has a larger selection of airplanes including airplanes which are now built with carbon fiber, along with a variety of new airplanes.

General managers are responsible for the overall performance of the organization or for one of its major self-contained divisions. Their overriding strategic concern is for the health of the total organization under their direction. Which is what we do with strategy in our department. We have what we call a yearly Performance Management, (PM) where the beginning of the year, our goals are assigned and assess with our manager. In the middle of the year, we meet with our manager to see how we are doing with our goals, to see if we can add or remove goals and at the end of the year, we once again close out our PM and the manager assess how well we did through out the end of the year. This also determines our pay for the next year. Our goals are both personal goals and goals which align with the company, its direction, and The Boeing 2016 Vision, which is similar to Toyota or The Toyota Way.

Formal strategic planning models stress that an organization's strategy is the outcome of a rational planning process.

The major components of the strategic management process are...