1 Strategic Management Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of internal and external environments in which the organization competes. The Process of Strategic management The process of strategic management are
1. Environmental analysis
2. Formulation analysis
3. Implementation
4. Evaluation
Environmental Analysis Environmental analysis is the main stage for gaining information and data to grow business. We analyze internal and external data influencing goal and get relevant vision for organization. By doing analysis, we can know who is our organization’ competitor. We can use the PESTEL analysis and SWOT analysis as a tool. We can focus on understanding the need of the organization and get more idea to run the business.
Formulation
After completing analysis, the information and data is reviewed by strategy formulation. For reaching defined goal and objective, we determine what resources has currently in business. After accomplishing analysis, managers formulate corporate, business and functional strategy. Formulation set policies, task, strategic planning. SWOT analysis is identified to improve weakness, to overcome strength, to get the way for organization from strength and weakness.
Implementation
Strategy implementation is the action stage of the strategy management process. Designing the organizational structure, distribution resources, developing decision making process and managing human resources are included in this stage. Establish annual objectives, devise polices, motivate employees, allocate resources, preparing budgets, developing information structure must be made in this action stage. Every people must make duties and responsibilities within the organization