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Strategic Management

In: Business and Management

Submitted By devonaidencolton
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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 number one brand of coffeehouse, valued at four billion dollars. Weaknesses include product pricing, negative publicity, and coffee bean pricing being the one major influence over the organization's profits. This links directly to an opportunity in seeking out new/more suppliers and increasing different product offerings. Starbucks is focused on many different goals as well; investing in

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