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Mgt 498 Week 1 Individual

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Strategic Management Process
Strategic management is defined as “a set of managerial decisions and actions that determines the long-run performance of a corporation” (Wheelen & Hunger, 2010, p. 5). Strategic management helps companies gain a comparative advantage over the competition. As competition increases from global expansion, companies are more interested in strategic management to remain competitive. The following paper will discuss the components of strategic management, and how Central Transport uses strategic management to remain viable in a volatile business market.
Strategic Management Components Strategic management consists of four components. These components include environmental scanning, strategy formulation, strategy implementation, and evaluation and control (Wheelen & Hunger, 2010).
Environmental Scanning
Environmental scanning is “monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2010, p. 16). This component is used to identify factors that will determine the corporation’s future (Wheelen & Hunger, 2010). SWOT analysis is the most common way firms identify strategic factors (Wheelen & Hunger, 2010).
Strategy Formulation The second component of strategic management is 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” (Wheelen & Hunger, 2010, p. 17). Companies often define the corporate mission, set goals, create strategies, and determine guidelines during this component (Wheelen & Hunger, 2010).
Strategy Implementation During strategy implementation, organizations develop programs, budgets, and procedures as a plan to obtain success (Wheelen

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