Management Policy and Strategy MT460
Strategy is a very important part of a business, after all it is an array or your thoughts and dreams, which you want for your business to help get all the things you, want for your business done quickly, and productively. This will also help keep your competition second guessing their strategy.
It Is also important to a business to have some sort of a base plan for any kind of a business that affects its revenue, expenses, and profits. It provides a long term direction to the business and it helps achieve a competitive advantage. It will also tell about the business in the market values, and the way they may handle resources in order to meet the objectives of the company as a whole. One of the main things it helps to do is analyze the internal and external environment.
Defining an organizations strategy defines the process of strategic management. It is also defined as a process that managers use to make a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that consists of four steps.
1. Environmental Scanning-Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes; it helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it.
2. Strategy Formulation-Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate business and functional strategies.
3. Strategy Implementation-Strategy implementation implies making the strategy work as intended or putting the...