Mgt 498 – Strategic Management Process
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Strategic Management Process
MGT/498
January 26, 2012
Strategic management is vital to all companies. Dealing with the corporate world, strategy is the plan that businesses use to accomplish the long-term goals and objectives. The objectives keep the company striving to have continued business success, while meeting the interests and expectations of the business stakeholders. This also protects and adds value to the shareholders investment. The most important element of a strategic management plan is to gain competitive advantage in the commercial, political, and social environment markets.
All plans require efficient and effective management, therefore within a business, it is no different. The strategic management process is needed and must be operated by the business and is composed of three main components which are strategic position, strategic choice, and translating the strategy into action.
Strategic Position
In order for strategic management to work effectively, the business must be truly aware of the current or strategic position and what issues may and may not affect the position. A business must work in the mind frame of “togetherness”. A business cannot operate independently from outside forces. There are a number of forces that may affect the strategic management process and they determine how it will enable management to decide where the opportunities and threats may lie within the plan.
Changes in political, legal, and social sectors have changed a considerable amount over the last few decades. There are more and more regulations, laws, and corporate governances being introduced often, changing the expectations of the consumers, and the consumers happiness is of utmost importance; it is what keeps the business successful. Other changes that affect a strategic plan include environmental issues and technological developments. It is important for company heads to get a clear understanding of the different forces so the opportunities and threats are revealed and great detail is taken into account within the strategy.
A different position has to be taken into account as well and has to be determined by assessing the capability of the organization. This will be somewhat of an interval or midway review, which is designed to acknowledge whether or not the business has the competency to fulfill the future strategies. In a nutshell, this review would be designed to evaluate the strengths and weaknesses of the success of the strategic management process. For example, if a business puts a plan in place, there has to be something to evaluate and ensure the ability of all departments to gain advantage over the competition.
Strategic Choice
Choice is the action of decision making that happens after the midway review of all available data and information has been managed. The key component of choice is derived upon recognizing which areas of business that will show the best opportunity for competitive advantage. The strategic choice will help determine if the proper strategic plan has been selected. The strategic choice has to be able to sustain the environmental and technological changes that may occur over time.
Translating Strategy into Action
Translating the strategic plan into actions for the business; that are concrete and prosperous in final stretch of the strategic management process is essential. The first step in the translation process includes organization and design. The organization and design will add to the successful implementation