...The Strategic Management Process Strategic management is a group of actions and decisions created by a management team to help determine the long range outcome of the company. In this paper one will learn about the four phases of the strategic management process as well as why it is important for companies to have one. Basic financial planning Phase one of the strategic management process is Basic Financial Planning. The basic financial planning phase is also known as the formulation phase in the strategic management process because it is during this phase where the company forms and develops a well thought out strategy to help achieve the company’s main objectives for the next year and then propose a budget and develop a strategy based on little information from the sales force. While this phase is generally tackled by top executives and senior management it is often left for general management to complete. Forecast-based planning Phase two of the strategic management process is Forecast Based Planning. The forecast based planning phase is also known as the implementation phase of the strategic management process and its purpose is to take one project at a time from the proposed strategy and implement it into the workforce starting with senior management and working down to standard employees. This is a very time consuming part of the process as management will continuously collect feedback from others working on the project as well as they need to make sure that they...
Words: 524 - Pages: 3
...Strategic Management Process Paper John Vincent MGT/498 December 12, 2012 Strategic management is a set of managerial decisions and actions that determines the long run performance of a corporation (Hunger & Wheelen, 2010). It is all about identifying and picturing the strategies used for better performance and gaining a competitive advantage for the corporation. In order for this to take place the manager must have the knowledge to make the right decisions using the SWOT Analysis and utilize the corporation’s strengths and minimizing the weaknesses. According to Hunger & Wheelen, (2010), corporations run the risk of error, costly mistakes, and economic ruin. Strategic management is used today to keep the corporations competitive in a volatile environment. The world is constantly changing and it is up to the managers to help the corporations evolve around it using the four phases of strategic management. Phase 1- Basic financial planning involves projects that are based on very little analysis. The following year’s budget takes approximately one year in which managers try to cram ideas (Hunger & Wheelen, 2010). Phase 2- Forecast-based planning usually takes three to five years. Annual budgets that have become useless for long-term planning have managers attempting five-year plans. With the internal information that is gathered, environmental information is also gathered. Managers in this phase compete for larger shares of funds with endless meetings to...
Words: 533 - Pages: 3
...Strategic Management Process Strategic Management Process Every company wants to achieve long term goals and objectives. Every company needs a strategic plan in order to achieve that. A company must evaluate the demands and expectations of their stakeholders when forming a strategic plan. The discussion for this paper will be about the main components of a strategic plan process and explaining why it is needed for a company to achieve long term goals and objectives. This paper will also discuss the strategic management process of National Aeronautics and Space Administration (NASA) Company. Four Phases According to (Wheelen & Hunger, 2008).) “strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation.” A manager will go thru the four phases of the strategic management process so that he/she is able to perform the job duties so that the company can stay competitive with other companies. Phase one is basic financial planning. This involves assignments, projects, and tasks that are based on small analysis. When managers are asked to propose the following year’s budget they take planning seriously, even though most of the information comes from within the company. Phase two is forecast-based planning. The planning should take at least three to five years to finish. Mangers will attempt a five year plan because annual budgets become useless for the long-term planning .Environmental and internal information...
Words: 631 - Pages: 3
...Strategic Management Process Paper Strategic Management Process Paper PRIMARY COMPONENTS According to Wheelen and Hunger (2010), “Strategic management is a set of managerial decisions and actions that determines the long run 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”. Over time and many mistakes and hard times, organizations have refined strategic management to four phases: Phase 1 – Basic financial planning: An example of this phase is budgeting for the following year. In my opinion is the beginning and ending part of planning for the following year. Decide on the budget at the beginning and by the end of the year; check to see how well the company stuck to the budget. Phase 2 – Forecast-based planning: This phase I call the long term planning. As an example, the company I work for put in place a three-year roadmap. Phase 3 – External oriented (strategic) planning: This phase is where companies scan external factors such as competition, changing markets and how they plan on dealing with these factors Phase 4 – Strategic management: In this phase is where top management get the rest of the managers within the company have input on the strategic plans. This can be done thru workshops, workgroups and consultants. “Planning is typically interactive across levels and is no longer top down. People at all levels...
Words: 447 - Pages: 2
...Strategic Management Process Mitchell Jaques MGT/498 August 23, 2011 Dr. Earl Levith Strategic Management Process Strategic management is an essential process for managerial decision making. This is a special process for planning and implementing actions that may determine a company’s long-term performance. This will require a business to conduct internal and external scanning and environmental analysis, strategic implementation is required, evaluation, and control. Strategic management encompasses the use of the SWOT analysis, (Strengths, Weaknesses, Opportunities, and Threats), to incorporate strategic planning and industry analysis (Wheelen & Hunger, 2010). Primary Components of Strategic Management In a normative or prescriptive approach to the strategic management model, we would generally reflect an explicit, planned, and rational approach of the process (Ginter & Duncan, 1985). According to the Ginter & Duncan (1985) website, this model was based of empirical research and creates a broader-based model. In this model there are eight stages of this process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. While the normative strategy hits all the main components of strategic management, there has been a more modern formula created for the strategic...
Words: 796 - Pages: 4
...Strategic Management Process Paper Misty DeMoss MGMT 498 September 24, 2013 Dennis Hoerr Strategic Management Process Paper Strategic management is an essential process for managerial decision making. This process helps a company determine what planning and implementing actions that may determine a company’s long-term performance. The basic model for strategic planning consists of the four basic elements: Environmental scanning, strategy formulation, strategy implementation, and evaluation and control. By companies conducting internal and external scanning of the environment they are able to make better observations of what the company actually needs to implement. This paper will describe the primary components of a strategic management process, indicate why a strategic management process is needed, and describe the process Ford Motor company uses. Primary Components of Strategic Management Every company requires managers to plan accordingly for the yearly budget. This yearly budget is a time consuming stage and uses minimal analysis and small amounts of environmental information. Forecast based planning is used in this eight stage model process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. The current model of strategic management process includes...
Words: 563 - Pages: 3
...Strategic Management Process Effective management practices by Riordan Manufacturing (Hangzhou, China) operations will reward the organization's owners with additional value and sound management practices will result in the manufacture and sale of high quality products. Both attributes contribute to Riordan’s ability to enlarge market share, and expand into the Indian market. However, prior to any expansion, Riordan Manufacturing must be "able to deliver the same benefits as Riordan’s competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage)" (Wang, Lin & Chu, 2011, p. 100). The delivery of cost and differentiation advantages, coupled with a strong core strategic management process will support Riordan’s business model regardless of where the company operates. Riordan's management will go through the entire strategic management process for the proposed Indian operations by the incorporating ethics and corporate responsibility (taken into account during the strategic management process). The different phases of the strategic management process include the following: 1. Formulation 2. Implementation 3. Evaluation and Control The purpose of the strategic management process is to look at Riordan's competitive advantage specifically as regards it products' competitive placement in India which it plans to expand into, and formulate proper strategic plans for the company to take exploit the advantage...
Words: 940 - Pages: 4
...Strategic management can be defined as the systematic analysis of the factors associated with customers and competitors. Strategic management allows organizations to strategically align policies to ensure efficient management is consistently obtained (Business Dictionary, 2011). Through strategic management, organizational leaders are able to assess their strengths and weaknesses and leverage them in order to monitor, evaluate, and plan accordingly. In this paper, the author will describe the primary components of a strategic management process and explain the importance of a company having a strategic management process. The author will also describe the strategic management process used at FedEx Corporation that makes them a leading force in their industry. The concepts and techniques of strategic management are widely used by organizations to help their companies remain competitive and decrease the likelihood of costly errors (Wheelen & Hunger, 2010). Strategic management is a continuous process that has four phases that outline the set of strategies an organization should use to achieve better performance (Management Study Guide, 2010). The first phase of the process refers to the financial planning managers use to develop a budget to be used for company activities during the year. The second phase involves forecast-based planning which allows managers to review the budgets and determine their feasibility on a long-term basis. Externally oriented planning in phase three...
Words: 535 - Pages: 3
...Ethics Paper Role of Ethics and Social Responsibility in Developing a Strategic Plan While Considering Stakeholder Needs and Agendas When a company makes a strategic plan it is best to consider both the moral and social responsibilities that they have, not just to the business, but to the stakeholders, as well. The stakeholders are customers, suppliers, the community, employees, stockholders, the government, and the suppliers. “From a social responsibility perspective, many organizations are acknowledging that they’re not islands, isolated from the larger communities that surround them. In fact, they know that they function best within healthy communities” (Trevino & Nelson, 2007, p. 7). A healthy social environment is needed for a healthy business environment (Trevino & Nelson, 2007). Believe it or not, stakeholders have a “stake in what the organization does and how it performs. These stakeholders often have the power to interfere with a firm’s autonomy and economic freedom” (Trevino & Nelson, 2007, p. 32). There are many things that stakeholders can do to harm a business such as boycotting products, strikes, protesting, and government laws being passed. There is a significant problem with corporate social responsibility when ethical and economic responsibilities conflict with each other. When this happens, there is bound to be layoffs of employees in a fair and just manner (Trevino & Nelson, 2007). According to Trevino & Nelson (2007), not all...
Words: 1507 - Pages: 7
...Strategic Management Process November 22, 2010 Strategic Management Process Strategic planning is key to the success of any organization. According to Wheelen and Hunger, strategic management is a compilation of goals that will determine the future of an organization. Strategic planning includes internal and external environmental scanning, strategic or long-range planning, implementation, followed by evaluation, and control (2010). An organization will attempt to follow the four phases of strategic management to ensure success. The four phases are financial planning, forecast-based planning, external-oriented planning, and strategic management. Financial planning allows the managers to commence a serious planning process to create a budget for the next year. The ideas that the management proposes are usually based on information from the firm with little analysis done prior. Input comes from the sales forces but lacks environmental information. The basic financial planning usually halts normal work for a time to create a proposed budget and the time horizon in one year. The next phase is forecast-based planning so that a three to five-year plan will be created. The projects taken into consideration may be longer than a year in length. Managers gather both internal information and environmental data to create a possible trend for the next five years. Although this phase is time-consuming it is required to weed through the political aspects, evaluate proposals, and justify...
Words: 632 - Pages: 3
...Strategic Management Process Abdul Mitchell MGT/498 September 8, 2015 John Vincent Strategic Management Process Strategic management means a set of managerial decisions, and actions which determine how the company will be ran for the long haul. While reading the text books and other online sources there are a lot of different phases that we must follow to a have success in strategic management process. Phase 1: basic training, phase 2: forecast based planning, phase 3: externally oriented (strategic) planning, and phase 4: strategic management. These are much needed to run a company or the company will never take off and will just remain a dream. Describing the Primary Components Strategic position: would be the most important of all of the positions to describe this position we must think like business owners and how to make the company overcome downfalls. For example the company will not be able to make it without leadership. Strategic choice: the process of making decisions after all data has been reviewed. Translating strategy into action: this is the finale piece of the puzzle meaning taking action on the strategic plans that have been put into place. With this plan in place the company will be successful no matter what happens. Even if the company has a downfall it will be able to bounce back by revisiting the steps and seeing where the problem came into play. One company...
Words: 321 - Pages: 2
...Strategic Plan: Riordan Manufacturing MGT/498 October 2013 Riordan Manufacturing Strategic Plan Why is strategic management necessary? Strategic management, and business policies are essential for organizations to gain competitive advantage within their respective markets. Organizations like Riordan Manufacturing implement policies, and procedures to provide structure, and standardize operations in efforts to maintain proper control of production, inventory, and logistics. Developing a strategic plan focuses on the need for planning, roles of ethical and social responsibility, current competitive advantages, innovation, sustainability, internal dynamics, influence of business continuity, and assessment, and feedback. The following discussion details a strategic plan for Riordan Manufacturing. Topics include areas of environmental scanning, strategy formulation, strategy implementation, evaluation, and control. Riordan Manufacturing Effective Strategy Guidelines Riordan Manufacturing is focused on what really matters, the bottom-line performance and long-term healthy survival of its organization. Now that Riordan Manufacturing has implemented an effective competitive strategy it must evaluate and measure its performance. Measuring its performance is critical to the success of Riordan Manufacturing. By implementing an effective measurement guideline, it would help Riordan Manufacturing in tracking the progress against its goals and objectives; identify areas of improvement;...
Words: 2052 - Pages: 9
...Elizabeth Huhn MGT/498-Strategic Management The Strategic Management Process Peter Braverso February 17, 2014 Strategic Management is necessary and integral part of every business, from small start-ups to large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger, 2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen & Hunger, 2010) Outside consultants may be used in this phase of the strategic process. All of these phases contribute to a smoother running organization and emphasize communication and clear roles within the organization. “...The real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.” Starbucks Coffee Company is a prime example of effective strategic planning. Starbucks has a longer list of strengths than weaknesses, although a longer list of threats than opportunities, there is awareness of these threats. Among its strengths, sound financial records tops the list, followed by being the...
Words: 686 - Pages: 3
...Strategic Management and its Components Terrence Suggs MGT/498 March 16, 2015 James Powell Strategic Management and its Components Strategic management is the process that managers use to create, implement, and evaluate a strategic plan in the organization successfully. There are various models of strategic management. These types vary from one business to another, depending on the leadership styles, the experience a company has earned in coming up with a successful strategy and organizational culture (Smircich et al., 1985). There are different components of strategic procedure that are spread all over the stages of strategic planning. In most cases, strategic planning system consists of four most common phases which include a strategy analysis, formulation of the strategy, the implementation phase, and finally monitoring stage. However, this assignment will look at the five steps and offer an in-depth analysis of the different stages (Covin & Slavin, 1989). The first stage of strategic management is the initial assessment. This is usually the starting point for every company and it involves the managers identifying the company vision and the mission. In this case, the vision states where the company desires to be, whereas the mission describes the organization’s business operations and standards of working. After the identification of the enterprise mission and vision, the manager should evaluate the company’s internal and external environment and analyze its...
Words: 733 - Pages: 3
...contains our observations of your company’s business processes and specific recommendations as to how improve the areas our team deemed as needing improvement. The report contains examples of available tools and processes that you and your staff will find make process management easy and convenient. After working with the staff and employees of Can-Go it is easy to see how your company got off to such a good start and, hopefully with the observations and recommendations in this report will assist you in your quest to take Can-Go to the next level. Again, it has been an absolute pleasure teaming with you over the past eight weeks and we look forward to serving your needs in the future, if you should have any questions regarding the contents of this report I would be happy to discuss it with you in person or, if you prefer, by phone at (555)-343-5555. Sincerely, Charles Davenport IDC Solutions Contents Abstract 4 Introduction 5 Mission and Vision 5 The Strengths Weakness Opportunity and Threat Analysis 6 The Strategic Planning Process 7 Phase 1: Getting Started: 8 Phase 2: Preliminary Planning. 8 Phase 3: Strategizing. 9 Phase 4: Implementation. 9 Phase 5: Control 9 Strategic Management Tools 9 Evaluation of Performance 11 Summary of Recommendations 12 Conclusion 13 References 15 Table of Figures Figure 1: SWOT...
Words: 2729 - Pages: 11
