Creating a Vision and Mission statements.
He also tries to find out the major purpose and stakeholder expectation from the company. External analysis mainly include the study of market position of Strategic management components company, upcoming and its major competitors, while on the other hand internal analysis include the primary and support activities involve in creation of goods and services.
Strategy Formulation After completion of strategic analysis, a real position of the company came in front of all, on the basis of which steps are taken to decide a suitable competitive strategy. Here strategic development directions and methods are decided.
On the basis of strategic capabilities in terms of resources and competencies company can decided whether it can achieve competitive advantage on the basis of reducing the price of its products or by improving the quality.
Strategic Development Here the business strategy is developed.
It is often placed on a balanced scorecard to keep track of how functional areas of the business will be impacted. Company has to ensure that out of the four options which is going to be the best. Firstly whether it wants to move into the same market with the same products to protect their market position, secondly either it wants to enter into the new market, thirdly it wants to introduce new products and lastly the complete diversification both in terms of product and market.
And thus on the basis of final decision strategy is developed. At this stage only the decision is taken related to the activities that an organization is going to perform independently and the activities which can be perform in partnership. Strategic Implementation The final step is to implement the strategy.
It will be necessary to monitor outcomes among functional departments and gain full understanding about how they affect stakeholders. It is possible the strategy will need to be adjusted for compensate for unexpected outcomes. Top management team of the company supports its operating companies located in 60 countries throughout the world.
Every location with some exceptions is managed by the citizen of that country where it is located. Decentralized structure of the company allows each operating company to make their own strategic plans. Management just expects that while developing these plans ethical principles and responsibilities should not get ignored.
Management meetings are organised every year to discuss strategic directions and major developments of the businesses.Strategic Management Process - Meaning, Steps and Components The strategic management process means defining the organization’s strategy.
It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic Management Components Your Name MGT/ April 4, Your Instructor Strategic Management Components Strategic management is not just a set of boring rules in a book.
It is a philosophy. An approach to business that can determine if the business is feasible, and once the business is up and running is the basis of consistent gains.
The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
Approaching management with a long-term strategy in mind can increase a business’s chance of success. Strategic management uses a large-scale, goal-oriented approach through the use of three major components: environmental scanning, strategy .
Jun 29, · The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that .
Jun 29, · The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business.
Upper management must .