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Strategic Management Process Paper

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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 evaluate proposals and justify assumptions (Hunger & Wheelen, 2010).
Phase 3- Externally oriented (strategic) planning is when top management takes control of the planning process by initiating strategic planning. In phase three the corporation seeks to increase its responsiveness to the ever changing markets and competition by thinking strategically (Hunger & Wheelen, 2010).
Phase

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