Strategic Management Process
The strategic management process helps a business construct strategies that helps them react, and respond to new challenges by finding more efficient ways of conducting business. In this paper, the primary components of the strategic management process will be explained, and the question of why this process is needed for a company will also be addressed. Finally, the strategic management process of Dell will also be discussed.
Primary components of the strategic management process
The primary components of the strategic management process are situational analysis, strategy formulation, strategy implementation, and strategy evaluation (Hunger, 2010). The situational analysis is the most important component of the strategic management process because it encompasses an organizations internal as well as external, environments to determine how the company fits into these environments. With this step of the process an organization looks at its internal environment (employees), to see how they are interacting with each other. Managers look at the external environment (suppliers, competitors, suppliers) to see how the employees are interacting with them.
The second component of the strategic management process is strategy formulation. Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision (Management Study Guide, 2013). The strategy formulation process involves six steps. These steps are not in any particular order, evaluating the organizational environment, setting organization objectives, aiming in context with divisional plans, setting quantitative targets, choice of strategy, and performance analysis.
The third component is strategy implementation. This step involves putting the formulated strategy into action and focuses on who, when, where and how of