Meaning of Strategic Management Process
Strategic management is a management branch concerned with the formulation and implementation of strategies that will help business in achieving the desired outcomes. It is the one which tells you how are going to achieve your set of goals with the best utilization of resources available with you.
Strategic management provides direction to the company for performing its functions and helps it in achieving competitive advantage in the market. It is a broader term which comprises of setting the targets to be achieved, framing and applying the strategies, recognizing the deviations and taking all corrective measures to remove them timely.
Strategic management is a continuous process which supports the organization in bringing all required market changes in their internal working and ensures its long term survival. It takes into account all available opportunities and threats to the organization and develops proper strategies for handling them by considering the strengths and weakness of the organization. Strategic management plays an effective role in enhancing the value of the business by keeping it ahead in a competitive environment.
Process of Strategic Management
7 steps of Strategic management process are discussed in points given below:-
Developing Organization Vision and Mission
Strategic management process begins with recognizing and formulating the vision and mission of the organization. The vision describes where the business wants to reach and mission tells us the business values and its purpose of existence.
Analysis of Organization
The second step is concerned with performing a strategic analysis of the organization. It involves scanning all internal and external forces influencing the operation of the business. In this sufficient information is gathered regarding the environment within which business operates for setting objectives.
It means deciding objectives to be accomplished for reaching the vision. These objectives serve as the means for evaluating the performance and progress of organization Managers at different positions within the organization decide the varied set of objectives as per their position. These objectives are linked to each other in a way that those set by managers at lower level helps in achieving the one which is decided by senior managers.
After deciding various objectives to be achieved, the next step is choosing the most appropriate action among different alternatives available for attaining them. Managers after detailed analyses of various options, selects the best strategy for performing organization activities.
In this step, strategies framed by managers are put into action by successfully implementing them within the organization. Strategic implementation is a crucial step in this process because unless the chosen strategies are properly implemented, the intended work cannot be achieved. It involves properly organizing structure of the organization, fixing roles and responsibilities and developing an efficient decision-making process.
Strategy Evaluation and Control
The sixth step in the strategic management process is concerned with evaluating and monitoring the performance for ensuring that all activities go as per the plan. It is the one which helps in keeping all operations on track by informing about all required changes from time to time to management. Managers are able to take all remedial measures timely in case of any deviations.
This is a crucial part of the strategy management process. A SWOT analysis focuses on evaluating the strengths, weakness, opportunities and threats of an organization. Organizations are able to understand their overall position and detect all forces which affect their performance through this analysis.