Strategic Management

• Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.
• Strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success.
• Strategy refers to the overall plan or approach a person or organization takes to achieve long term goals.
• The strategic management process consists of four steps: environmental scanning, strategy formulation, strategy implementation, and strategy evaluation.
• Environmental scanning in the strategic management process involves collecting, scrutinizing, and providing information for strategic purposes.
• Environmental scanning helps in analyzing the internal and external factors influencing an organization.
• Strategy formulation in the strategic management process is the process of deciding the best course of action for accomplishing organizational objectives and hence achieving organizational purpose.
• Strategy implementation in the strategic management process involves making the strategy work as intended or putting the organization’s chosen strategy into action.
• Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources.
• Strategy evaluation in the strategic management process is the final step.
• Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives.
• Components of Strategic Management: These components are steps that are carried, in chronological order, when creating a new strategic management plan.
• 1st Phase of Strategic Management: An organization must first establish clear, realistic goals that answer what the company wants to achieve and why.
• 2nd Phase of Strategic Management: Organizations must then be able to examine, understand, and codify what internal and external forces affect their business and goals, as well as what it needs to remain competitive.
• 3rd phase of Strategic Management: Based on the results of the analysis, the company can then develop its strategy, outlining how the company will achieve its goals and how these resources will be allocated to fulfill tasks.
• 4th phase of strategic management: During this phase, the allocated resources are placed into action based on their roles and responsibilities.
• 5th phase of strategic management: Evaluate the effectiveness of the implemented strategies using defined metrics.
• Strategic Management Model

  The strategic management model identifies concepts of strategy and the elements necessary for the development of a strategy enabling the organization to satisfy its mission.
• tap into opportunities

  identify strengths and weaknesses by studying the internal structure of your organization.
• keep abreast of vital changes.

  A business environment is dynamic and fast-paced.