Examine the Role of Strategic Management in the Development and Implementation of an Organizations Global/Transnational Strategy.

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Examine the role of strategic management in the development and implementation of an organizations global/transnational strategy.

The successful global strategic manager must be able to analyze the major business functions within the organizations global and understand how they affect the strategic management process and should be integrated with it. The importance of the relationship between these business functions and the strategic management process cannot be overestimated. Strategic management is defined as a continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment. The definition of strategic management we have proposed emphasizes that managers engage in a series of steps. These steps are performing an environmental analysis, establishing organizational direction, formulating organizational strategy, implementing organizational strategy, and exercising strategic control. In the following parts, we will discuss these steps individually. (Certo and Peter, 1991: p5)

The strategic management process begins with environmental analysis. Environmental analysis is the process of monitoring the organizational environment to identify both present and future threats and opportunities that may influence the firm’s ability to reach its goals. The organizational environment is the set of all factors both outside and inside the organization that can affect its progress toward attaining those goals. In general, the purpose of environmental analysis is to assess the organizational environment so that management can react to it appropriately and thereby enhance organizational success. For purposes of analysis, this environment is divided into three main segments, or level: the internal environment (consisting of organizational, marketing, financial, personnel, and production aspects), the operating environment (consisting of the supplier, competition, customer, labor, and international components), and the general...