Strategic Management Process
Strategic Management Process
There are four primary components involved in the process of strategic management. The first component is Environmental scanning. This component is the component that concentrates on utilizing the SWOT analysis tool. This is when the strengths and weaknesses of the company are examined. The strengths and weaknesses are examined through the functions that are utilized inside the company. For the external functions of the company, the focus is the threats and opportunities. Environmental scanning is an important component of the strategic management process
The definition of strategy formulation is, “the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses” (Hunger & Wheelen, 2010, p. 17). This phase is when the mission and vision statement of the company is implemented. It is also the stage that the company utilizes its objectives and policies. The company’s mission is the reason for the company’s existence (Hunger & Wheelen, 2010 p.17). The reason for the company’s vision is to show the intentions of the organization.
Strategy implementation is when the company is ready to start the strategy. This means that all the things created, such as programs are ready to be implemented. These programs are created to support changes in the company. These programs include the steps that will be utilized to accomplish the plans that were set. Strategy implementation is usually the task of the managers, but it is implemented by those of senior authority when the implementation becomes among a large population throughout the organization
The final process is Evaluation and Control. “Evaluation and control is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance” (Hunger & Wheelen,