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Strategic Management Paper

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Running head: STRATEGIC MANAGEMENT PROCESS PAPER

Strategic Management Process Paper
University of Phoenix

Strategic Management Process Paper “Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it’s encouraging because things may get better. To the hopeful it is inspiring because things may get better. To the confident it is inspiring because the challenge exists to make things better” (Whitney, 2011). In this day and age businesses are faced with great challenges one in particular is becoming a profitable organization. In order for businesses to combat these challenges they must take risks and utilize strategic management to determine which direction the company will move. This paper will attempt to discuss the primary components of strategic management and why it is used in a company. Next a company will be researched and the strategic management process will be identified. Environmental scanning is the first step in the strategic management model (Wheelen and Hunger, 2010). This process involves looking at internal and external variables that have an impact on a business. The environmental scanning process identifies strategic factors. Businesses use many tools to identify this information, the most common being the strengths, weakness, opportunities, trends and threats (SWOTT) analysis. This helps to identify the factors that can play a significant role in the business development. “To ensure all Californians have access to high quality health care at an affordable price” (Blue Shield of California, 2011). This is the mission statement of Blue Shield of California in which is a part of their strategy formulation. Strategy formulation is the organizations development of long range plans. Mission and visions are part of a company’s

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