...RUNNING HEAD: STRATEGIC MANAGEMENT PROCESS Strategic Management Process Marty Carbajal MGT/498 Strategic Management F. Everett Hardee June 24, 2013 The purpose of this paper is to illustrate and discuss the components of the strategic management process and to indicate why such a process is necessary for an organization. Strategic management involves several steps, one of which most fundamentally is strategic planning as the organization needs to determine where in the business environment it exists and where it is going. Strategic Management Strategic management involves a series of management decision, plans, and actions that involve the long run performance of the organization. These actions include environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring, and evaluating of external opportunities and threats considering a corporation’s strengths and weaknesses (Wheelen & Hunger, 2010). Strategic management is a method of recognizing and executing the mission of the organization by matching its capabilities with the demands of its environment. It is to identify the organization’s strengths and weaknesses while exploiting its strengths and minimizing its weaknesses. These steps are used to create competitive advantages and advance toward a vision created for the organization. Phases...
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...Strategic Management Process Monique Hayes-McCallum November 13, 2012 MGT/498 Cliff Lavin The Process The basic elements of the strategic management process are environmental scanning which is the gathering of information; strategic formulation & implementation which is the developing of a plan and then putting that plan into action; and evaluation and control or the monitoring of the performance of the plan. Once referred to as “business policy”, strategic management is represented as a specific “set of managerial decisions and actions that determines the long run performance of a corporation; while incorporating things such as strategic planning, environmental scanning, and industry analysis.” (Wheelen & Hunger, 2010) Strategic plans aid in a company’s ability to be successful in the long run by mapping out specific goals and guidelines in which those goals should be met. “In order for a business to be successful in the long run, it must not only be able to execute current activities to satisfy an existing market, but they must also adapt those activities to satisfy new and changing markets.” (Wheelen & Hunger, 2010) When researching companies and their strategic management, Estee Lauder was a company that seems to stand out. Their, Estee Lauder, main business is the manufacturing and the marketing of all their products and licenses; distributing it’s products through various avenue’s for market position and audience, such as department stores and...
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...Strategic Management Process By: MGT/498 Date: Strategic Management Process Below I will describe what the purpose of strategic planning or management is and why it is so important to have a strategic management process within the organization. I will also take a look at Johnson & Johnson and describe their strategic management process. According to Hunger and Wheelen strategic management is “a set of managerial decisions and actions that determines the long-run performance of a corporation” (Hunger, D.J. & Wheelen T.L, 2010, p. 5). This process includes checking for internal and external drivers, long range planning, implementation, and evaluating how the plan is working (Hunger, D.J. & Wheelen T.L., 2010). Every possible route and influence must be looked at when developing the plan. The strategic management process has four phases. First there must be financial planning. No matter what the strategic plan is, there must be money allocated in the budget. Secondly, long-range plans are developed usually on a five or three year term. Thirdly, after the internal drivers are thoroughly examined the external drivers must be scanned. Some of those drivers could be the economy and competitors. Finally the last phase is the strategic management, which incorporates input from lower level management. (Hunger, D.J. & Wheelen T.L., 2010). The strategic management process is important because it enables organizations to plan for the future. Any company...
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...Business600: Strategic Management Process Literature Review Keyona Henderson Liberty University July 04, 2014 Strategic Management Process Introduction The strategic management process is more than just simple rules. It is a rational approach used in businesses. It starts with management thinking strategically, then applying steps and thought to a process. This process should be understood by everyone in the business. Although it starts with upper management, it should be implemented throughout the entire business and everyone should be included. According to Popescu, in the International Conference on Management and Industrial Engineering “The process of strategic management consists of an ongoing analysis, decisions, and actions activities to create and sustain competitive advantages in order to obtain desired competitive position and achieve strategic objectives”(Popescu,2013). This process is not one simple step and can be complex. It is not a onetime occurrence and can happen multiple times. The ongoing analysis, decisions, and actions that are performed should include all people involved. Everyone should be on the same page throughout the strategic management process. Goal Setting It is important for any business to set goals. Goals give businesses a purpose. It helps to organize the direction in which a business should take. Businesses should always have goals and let the goals be clear. Goals should be clear to both managers and employees. Short term and...
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...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...
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...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...
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...Running head: STRATEGIC MANAGEMENT 1 The Strategic Management Process GiGi Davis MGT/498 – Strategic Management Ms. Linda Davis STRATEGIC MANAGEMENT 2 The Strategic Management Process is comprised of four components, which are: Environmental Scanning/goal-setting/analysis, strategy formulation, strategy implementation, and strategy evaluation and control. All of the strategies mentioned are equally important. Strategic Management is more than asset of guidelines or rules. When management or the Board of Directors devise a plan through a very selective thought process and everyone is prepared for implementation, this is the Strategic Management Process. ➢ (Environmental Scanning) Goal Setting – The company’s vision. Defines long-term and short-term goals, how the vision will be accomplished, and the mission and objectives for staff. Analysis – Data in relation to the vision; SWOT Analysis. ➢ Strategy Formulation – The overall review, determination, identify and prioritize all external and internal resources. ➢ Strategy Implementation – Anything dealing with the funding and the overall structure of the organization. At this point everything is secured, including employees and the implementation of the plan begins. ➢ Strategy Evaluation and Control – As simple as the monitoring of performance measures, what isn’t evaluated and controlled can’t...
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...communication. These characteristics are associated with strategic management such as who will run the business? How will the business make money? Will the business sell items? What items and who will be the target buyers? Or what is the purpose of the business. These questions are in line with the strategic management process and why the process is needed. Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation (Wheelen & Hunger, 2008, p. 5). A strategic management plan primary components generally will include environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Environmental scanning helps a business identify current and future issues along with “monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2008, p. 10). Strategy formulation is the most imperative portion of the plan mainly because it focuses on “effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses” (Wheelen & Hunger, 2008, p. 12). Management is a key component; without effective management theirs no one to implement, enforce and enhance the company. Managers also work with associated whom generally find the flaws that will ultimately help the business. Strategy implementation is “process by which strategies and policies are put into action through...
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...Strategic Management Process Angela Howard MGT/498 August 28, 2013 Glenn O’Steen Components The primary components of the strategic management process are environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Environmental scanning is described to be “the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen, 2010). Environmental scanning is usually used to classify strategic influences that will control the future of the corporation. Strategy formulation is the act of rising long-term tactics for the future of a company by using the company’s strengthens, and weaknesses, for the efficient management of environmental opportunities and pressure. Strategy implementation is the putting in action of the strategies formulated by a corporation. Lastly, evaluation and control includes the monitoring of corporate activities and performance in order to compare the actual results, to the ones that are set as goals. Strategic management helps a company sustain long-term performance. For companies that do not practice strategic management, it is very hard to attain and to sustain long-term performance. Most companies when they have finally attained a high performance level will soon experience a decrease in their performance. Strategic management will help a company understand, and realize that the environment around them is constantly changing...
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...Strategic Management Process By Tana Urban MGT/498 November 4, 2013 Dr. Dulcelina A. Stahl : Instructor Strategic Management is a set of managerial decisions and actions that determines the long-run performance of a Corporation. Strategic Management includes environmental scanning (both internal and external), strategic formulation ( strategic or long-range planning), strategic implementation, and evaluation and control. (Wheelan, T.L., and Hunger, J.D. (2010.). Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. This component of the Strategic Management Process helps in analyzing the internal and external factors influencing an organization. Strategic Formulation is the process of deciding the best course of action for accomplishing organizational objectives and hence achieving organizational purpose. Strategy Implementation implies making the strategy work as intended or putting the organizations chosen strategy into action. Strategy implementation includes designing the organizations structure, distributing resources, developing decision making process, and managing human resources. Strategy evaluation is the final step of Strategy Management Process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial/corrective actions. Evaluations make sure the organizational strategy as well...
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...Strategic Management Process Strategic Management process Judy Wiggens MGT/498 Eligah King December 5, 2013 Strategic Management Process 1 I think that the components of strategic management in corporate terms is strategy this is the plant hat many businesses devise in order to achieve its long term goals and objectives, these objectives are very essential to secure continued business and meet the demands and expectations of the business and stakeholders. In terms of shareholders, this would mean adding value to their investments, so an essential element of the strategic plan is to gain competitive and advantage in a every changing commercial, political, and social environment. As with all plans, to ensure success it needs to be managed efficiently and effectively, what I mean is that there has to be a strategic management process operated by the business, which comprises of three main component parts, strategic position, strategic choices, and translating the strategy into action so by doing this we first start with the strategic position for strategic management to work the business has to be fully cognizant of its current or strategic position and what elements may affect that position. Next is strategic choice this is the process of decision making that occurs once a review of all available data and information has been conducted...
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...term 'Strategic Management Process' refers to the steps by which management converts a firm's mission, objectives and goals into a workable strategy. In a dynamic environment each firm needs to tailor its strategic management process in ways that best suit its own capabilities and situational requirements. Viewed broadly, the strategic management process has two parts: an information process and a decision process. The information process involves collecting and analysing information about the external and internal environments. External factors are taken into account to find major opportunities and threats that now or will confront the organisation. To survive and grow, every organisation, invariably, must find how the situational factors have affected its past and current performance. This must be followed by an internal analysis to determine the organisation's strategic direction. Strategists carry out internal analysis to have a 'feel' of where their organisation has been and where it now is, particularly with regard to internal strengths and weaknesses. Information about the organisation's strengths and weaknesses, when combined with information about external opportunities and threats, offers a stronger foundation for informed decisions about strategic direction. The decision process covers four important steps: development of alternatives, choice, implementation and assessment. Based on the external and internal analysis, strategists first identify possible strategic alternatives...
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...Strategic Management Process Erica Valadez MGT/ 498 February, 12, 2014 Mr. Bernal Abstract There are several components of a strategic management process that are imperative for a company’s success. The most important components are environmental planning, strategy formulation, strategy implementation and strategy evaluation. Understanding each of them is essential when implementing them in the company. Strategic Management Process The primary components of a strategic management process are environmental planning, strategy formulation, strategy implementation and strategy evaluation. Environmental scanning is a process of collecting, examining and providing information for strategic purposes. This information assists in the internal and external factors influencing an organization. Following the analysis process, there should be an evaluation on it to improve the analysis (Management Study Guide, n.d.) Strategy formulation is the method of deciding the best course of action for accomplishing organizational objectives for this reason achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies (Management Study Guide, n.d.). Strategy implementation entails producing the strategy work as intended or putting the organization’s chosen strategy into action. This includes designing the organization’s structure, distributing resources, developing decision making process and managing human resouces...
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...Strategic Management Process Paper Vivian Shellmire MGT 498 March 21, 2011 Eligah King Strategic Management Process Paper The global marketplace has ushered in an emergent Era of corporate citizenship. Merging corporations often create an environment within a company where different structures coexist side-by-side. The reality, parties in collaboration tend to promote cultural capital. In fact, human nature is a factoring barrier making it a difficult challenge to retain highly esteemed talent and maintain production efficiency. Corporate responsibility obligates an organization to design a plan, a strategic process that fosters open-mindedness, confidence, passion, and optimism. A strategy plan incorporating mutual company goals, a philosophical mission statement, and an expected code of conduct can ensure consistency. A responsive way to alleviate conflict among parties would be to include a framework articulating clear concise policies, procedures, and implementation which emphasize corporate values and standards. General Motors Company for example, after acquiring partnership with Opel International encountered structural challenges. Opel’s (2011) promotion states, “We are inspired by the freshness and potential of unique talents. They excite our admiration and energize our emotion that is why we team up with new and established performers and support them, in their personal endeavors and the causes they believe in.” Ironically...
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...Strategic Management Strategic management basically aims at identifying and describing the strategies, which would be utilized by the managers of the organization, in order to attain better performances as well as competitive advantage for the company. Additionally, it is also considered to be a set of decisions as well as actions, which are taken by the managers or the top management in order to attain the objectives of the organization. Since, this is an ever changing environment, the managers must have all the information and knowledge, in order to cope up with these changes. The manager should be able to make sound decisions and utilize the resources of the company more effectively and efficiently. The initial stage for the manager is to analyze the organization itself, by conducting a SWOT analysis. In accordance with this, the decision takers look to devise a strategy. The major focus of the strategy is the utilization of the strengths of the firm, in the best possible manner. Apart from that, the organization should look to minimize its weaknesses, make best possible usage of the opportunities that arise within the market and always be aware of the threats to the organization. A strategy is developed to cover all these areas. This is the basic function of strategic management. The resources of every organization are limited and have to be utilized efficiently, so that the best possible profit could be gained off of them. For these purposes, the objectives or goals of...
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