The Strategic Management Process

Topics: Strategic management, Strategic planning, Management Pages: 7 (1881 words) Published: August 20, 2014

Contents Page

1.Introduction……………………………………………………………4

2.Key definitions……………..…………………………………..……..5

3.Strategic Management Process Model………………………………...6

4.Conclusion……………………………………………………………10

5.Bibliography………………………………………………………….11

Introduction
In the modern economy, competitiveness means information and know-how rather than capital and physical assets. Therefore, the key process for any competitive organization is to strategically use their information resources and knowledge assets by remembering and applying experience. An organization’s ability to compete on the market is increasingly seen as depending on the skills and knowledge of its managers and employees, regarded as intellectual capital, and put to good use while formulating, implementing and adjusting strategies. In the current business environment, knowledge evolves rapidly and the useful life span of organizational skills is decreasing, which means survival and competiveness of an organization is linked to its ability to learn and include its findings in their strategic management process. Having cited the criticality of strategic management on the survival of today’s business, it is of paramount importance that in this week’s issue I deal on the subject of Strategic Management Process.

Key Definitions
I would like to start by defining some key words and phrases that are associated with the strategic management process. A Strategy is a company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

Strategic management is the process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment. Strategic planning is the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future (Goodstein, etal, 1992). This definition takes us away from the notion that strategic planning is a staff job and focuses us more on process that requires senior leaders of an organization to set its strategic direction. Strategic plans are important because they provide a common vision for the organization. Whilst this definition limits strategic planning to a few elite in an organization, it should be noted that there different levels of strategic planning. These are corporate level strategies, business level strategies and functional level strategies. The concept of strategic management builds on the definition of strategic planning, recognizing that although planning is the prelude of strategic management, it is not sufficient if it is not followed by the deployment and implementation of the plan and the evaluation of the plan in action. Strategic management is therefore a systems approach to identifying and making the necessary changes and measuring the organization’s performance as it moves toward its vision. It is the process where managers establish an organization’s long term direction, set specific performance objectives; develop strategies to achieve these objectives in light of all the relevant internal and external circumstances, and undertake to execute the chosen direction. The strategic management process is therefore a series of steps that formulates the strategic planning, implementation and evaluation. This process is depicted by many model/drawings which basically depict the strategic management steps. Most of these models only differ in to the extent to which they simplify the process but they generally agree on major elements.

Strategic Management Process Model

Fig.1

It can be seen from fig 1 above that strategic management process is an iterative process...

Bibliography: 1. Lecture notes
2. Strategic management for Senior Leaders. Denis Lindsey Wells
3. Strategic Managemet
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