Strategic Management Processes
Strategic management plays a significant role in successful organized business. Awareness of the company environment including competition and processes enables managers to make better decisions for more efficient operation. Through strategic management processes maximum efficiency and profitability are more easily attained. Components of Strategic Management
Strategic management involves environmental scanning. Externally one must know the organization’s opportunities and threats as well as societal environment and task environment including analysis of the industry. Internally one must know the organization’s strengths and weaknesses, the organizational structure including chain of command and organizational culture including the mission statement, beliefs, expectations, and values. Other than knowing the internal and external environment of the company, knowledge of the company’s assets, skills, competencies, capital, and human resources are essential considerations when designing a strategic plan. These components are used throughout the four phases of strategic management are basic financial planning, forecast-based planning, externally oriented (strategic) planning, and strategic management. Benefits of Strategic Management
Wheelen and Hunger reported in a survey of 50 corporations involving various countries and industries there were three benefits rated highest. Strategic management a definitive strategic vision, a more focused view of company strategy, and better understanding of modern business’s constantly evolving environments. Wheelen and Hunger also reported Bain & Company’s 2003 annual Management Tools Survey of senior executives including senior executives at 708 companies on five continents showed strategic planning was one of the more preferred management tools. Of these tools, strategic planning was used in 89% of the companies and development of mission and vision statements was noted in 84% if the...
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