Strategic Management Process
The strategic management process means the process of defining an organization’s strategy. It is the process by which a manager makes a choice of a set of strategies for the organization to improve its performance. Strategic management is a continuous process. It involves continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. The four main components of Strategic management process are : Environmental Scanning- Environmental scanning is the process of collecting, scrutinizing and providing information for strategic purposes. It includes analysis and monitoring of the internal as well as the external environment of the organization to identify opportunities and threats affecting the business. Strategy Formulation- Strategy formulation is the process of establishing the organization's mission, objectives, and choosing among alternative strategies. In other words, it can be defined as the process of deciding the best course of action for accomplishing organizational objectives and hence achieving an organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies. Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. It includes designing the organization’s structure, distributing resources, developing the decision-making process, and managing human resources. Strategy Evaluation- Strategy evaluation is the final step of the strategic management process. The key strategy evaluation activities include appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial/corrective actions. Evaluation makes sure that the organizational strategy, as well as its implementation, meet the organizational objectives. These components are the steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan revert to these steps as per the situation’s requirement, so as to make essential changes.