STRATEGIC MANAGEMENT PROCESS PAPER 4
Strategic Management ProcessPaper
Strategicmanagement process refers to a continuous planning, analysis andassessment of the operations of the organization. It helps inanalyzing the organization decisions and performance of the company`smanagement team. Strategic management process outlines the vision,mission and goals of the enterprise (Hill & Jones 2010). Inaddition, it assists in the implementation of business plans as wellas allocating resources that lead to profitability. There arenumerous components of strategic management process.
Thefirst primary component of strategic management process isenvironmental scanning. It is the process of collecting and providingrelevant information for strategic purposes. Environmental scanninghelps in scrutinizing both the internal and external factorsaffecting an organization (Hill & Jones 2010). The second elementis strategy formulation. It entails choosing the best course ofaction to take to attain the organizational goals. The componenthelps in achieving the aims of the company. The third importantelement is the strategy implementation. It entails making use of theorganization`s chosen strategy. The company`s structure is designed,and resources distributed to the various departments (Hill &Jones 2010). Further, the decision-making process is developed toensure that informed decisions are made.
Theother important component is strategy evaluation. It is the finalstage of policy management process that entails numerous activitiessuch as measuring performance and taking corrective actions (Hill &Jones 2010). Evaluation ensures that the company`s formulated policyand its implementation is geared towards the achievement oforganization objectives.
Acompany can retain more customers, generate more revenue and maintainits share in the market when it has an advantage relative to that ofits rivals. It is achieved through a goal-oriented strategicmanagement process that helps analyze the operating environment,company capabilities as well as identifying the threats andopportunities (Hill & Jones 2010). Strategic management processis essential because it helps in corporate governance. It promotes anopen and effective communication in the organization. Further, itassists in setting up reporting and control mechanismsthat allow the business to monitor its progress continuously. Theother importance of strategic management process is that it helps insetting organization goals (Hill & Jones 2010). Setting theobjectives enables the organization to identify the strengths andweakness hence generating better ways of improvement.
Hill,C. W. L., & Jones, G. R. (2010). Strategicmanagement theory: An integrated approach. Boston, MA: Houghton Mifflin.