Running Head-PRIMARY COMPONENTS STRATEGIC MANAGEMENT PROCESS
The Importance of Strategic Planning
January 17, 2011
To obtain the most success out of any assignment, whether it is personal or business related, everything all begins with a plan at the highest level. It is often wondered why businesses are so successful, is it good leadership, or great planning. There will be a brief discussion on the four primary components of a strategic management process, and why it is needed for a company.
Strategic management centers on assembling a solid structure for a business that will need also the efforts of other individuals, "process of specifying an organization's objectives, developing policies and plans to achieve these objectives" (WordIQ, 2010). It takes decisions from all three company levels to make solid strategic decisions, strategic management evaluates a businesses vision, helping understand what is needed to execute and ensure the businesses consistency.
Businesses need to analyze, gather large amounts of information to evaluate and learn from change in the market. Environmental scanning helps businesses scan and uncover issues determining if the market is going as expected, "monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation" (Wheelen & Hunger, 2008, p. 10).
Strategy Formulation is very important to an organization, helps management prepare for the future of the organization in developing strategies. Strategy formulation is the creation of, "plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses" (Wheelen & Hunger, 2008, p. 12).
Keeping the internal structure of an organization is very helpful for the long-term life of a business. Strategy Implementation keeps the internal areas of a business running,