Strategic Management Process

Strategic Management Process

Natasha Sabbah

MGT/498

May 12, 2016

Instructor: Michael Korman

Strategic Management Process

The strategic management process forms any organization’s strategy for bettering its performance. Wheelen & Hunger (2012) define strategic management process as procedure applied by managers in making a choice of a set of strategic decisions aimed at better the performance of a given company. The process is continuous and involves numerous actions that influence the long-term performance of a company.

The management process has four varied steps or components that are vital in attaining success in any company. These components include; strategy formulation, environmental scanning, evaluation and control, and strategy implementation. Environmental scanning involves both external and internal parameters of the ecosystem. Wheelen & Hunger (2012) define environmental scanning as the process of collecting, analyzing and proving data for purposes of strategizing. It acts as a tool that enables analysis of both external and internal environmental factors that influence the company. After the analysis process is completed, managers continuously evaluate and enhance this component.

According to Wheelen & Hunger (2012), strategic formulation is also termed as long-range planning stage and involves affirming decision on the best course of action to meet a given objective of the company. From this point hence fourth, managers should come up with strategies for the company and the corporation.

Strategy implementation involves putting the strategy chosen by the organization into action in order to accomplish an intended work. This component involves designing the organization structure, distributing resources, developing the decision-making process and managing human resources (Wheelen & Hunger, 2012).

Strategy evaluation component forms the final phase of the strategy management process. It involves evaluating and implementing the original strategy to verify if they meet the objectives set by the organization (Wheelen & Hunger, 2012).  In this component, the performance of the strategy is measured to develop recommendations and corrective actions.

Significance of Strategic Management Process

 Strategic management process is significant in a company in various ways. The process helps an organization in satisfying and adjusting changes that may occur in the market. Wheelen & Hunger (2012) affirm that organizations must be able to adopt activities that satisfy the existing market. Additionally, the activities should be flexible to fit changing market needs. This ensures that the company attains long-term success.