The strategic management process is where the company’s strategy is defined. The managers choose types of strategies they want used to reach higher performance levels. It’s a continuous process that focuses on businesses and industries where the agency is involved. The company looks at the competition and figures out ways to get ahead of them.
4 Steps to the Strategic Management Process
- Environmental Scanning – Collect, analyze and pass along information for strategic means. Analyze internal and external factors that influence the company. This will be completed periodically, and improvements can be done continuously.
- Strategy Formulation – Choose the best course of action. Corporate, business and functional strategies are created here.
- Strategy Implementation – Work the new strategy as it is intended to. The design of processes is completed here like the business structure and distribution of resources.
- Strategy Evaluation – The final step. Review internal and external factors, measure performance, and take corrective actions.
Why Use The Strategic Management Process?
Always use these four steps in chronological order to create new strategic management plans. There is no stopping as the company realizes that all the steps work together and in chorus. The agency will evaluate and control business and industries where the organization works. Most of all it evaluates competitors and sets goals and strategies to better compete with them. As a result it reevaluates strategies in place to ensure implementing is done correctly.
It seems like the question that has to be asked needs to be; is it successful or does it need to be replaced? Roles of the strategic management process are to create functional areas and make sure they work well together. Furthermore to keep an eye on goals and objectives of what the business wants, and make sure that they are followed and used correctly. Especially relevant is that if it isn’t used correctly damage can be done to the company in question.