November 13, 2012
The basic elements of the strategic management process are environmental scanning which is the gathering of information; strategic formulation & implementation which is the developing of a plan and then putting that plan into action; and evaluation and control or the monitoring of the performance of the plan. Once referred to as “business policy”, strategic management is represented as a specific “set of managerial decisions and actions that determines the long run performance of a corporation; while incorporating things such as strategic planning, environmental scanning, and industry analysis.” (Wheelen & Hunger, 2010) Strategic plans aid in a company’s ability to be successful in the long run by mapping out specific goals and guidelines in which those goals should be met. “In order for a business to be successful in the long run, it must not only be able to execute current activities to satisfy an existing market, but they must also adapt those activities to satisfy new and changing markets.” (Wheelen & Hunger, 2010)
When researching companies and their strategic management, Estee Lauder was a company that seems to stand out. Their, Estee Lauder, main business is the manufacturing and the marketing of all their products and licenses; distributing it’s products through various avenue’s for market position and audience, such as department stores and specialty retailers. “Estee Lauder’s overall strategy also includes heavily investing in Research and Development. In order to have the most advanced products that consumer’s desire they feel that this is a necessary expense. Additionally the company does not conduct animal testing or have anyone do so on their behalf. They test each and every product on a panel before releasing it to the public. As of June 30, 2011 Estee Lauder had approximately 550 employees engaged in R&D costing...