Strategic Management Process Rex C.
Creating a Vision and Mission statements. The starting point of the process is initial assessment of the firm. Business' vision answers the question: What does an organization want to become?
Vision is the ultimate goal for the firm and the direction for its employees. Thorough mission statement acts as guidance for managers in making appropriate Rothaermel, p. Internal environment analysis, External environment analysis and Competitor analysis Tools used: During an external environment analysis managers look into the key external forces: Micro environment affects the company in its industry.
Competition is another uncontrollable external force that influences the company. A good example of this was when Apple released its IPod and shook the mp3 players industry, including its leading performer Sony.
Firms assess their competitors using competitors profile matrix and benchmarking to evaluate their strengths, weaknesses and level of performance. An organization holds both tangible resources: Successful situation analysis is followed by creation of long-term objectives.
They act as directions for specific strategy selection. In an organization, strategies are chosen at 3 different levels: This type of strategy is used when strategic business units SBUdivisions or small and medium enterprises select strategies for only one product that is sold in only one market.
The example of business level strategy is well illustrated by Royal Enfield firms. They sell their Bullet motorcycle one product in United Kingdom and India different markets but focus on different market segments and sell at very different prices different strategies.
At this level, executives at top parent companies choose which products to sell, which market to enter and whether to acquire a competitor or merge with it. They select between integration, intensive, diversification and defensive strategies. The main questions to answer: Which new markets to develop and how to enter them?
How far to diversify?
Thompson and Martin, p. Policies, Motivation, Resistance management, Leadership, Stakeholder Impact Analysis, Changing organizational structure, Performance management Even the best strategic plans must be implemented and only well executed strategies create competitive advantage for a company.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.
Describe the primary components of a strategic management process, and indicate why a strategic management process is needed for a company. The strategic management process can be defined as the organization’s strategy. Strategic Management Process Strategic management is an ongoing process of managing an organization strategically.
This involves a set of management decisions and actions that result in formulating and implementing strategies that determine the performance and success of the organization. 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 thought to. Strategic Management Process Strategic Management Susan Muhr Leister The strategic management process is essential in every organization. Each component of the strategic management process is necessary and they all work together to create one common goal which is the long term success of the company.
• Describe the primary components of a strategic management process, and indicate why a strategic management process is needed for a company. • Research at least one company and describe the strategic management process that the company uses.