LESSON 2: Strategic Management Process

Strategic management is the process of making decisions that will guide an organization’s future direction and ensuring that these decisions are implemented effectively. The strategic management process consists of four main elements: environmental scanning, strategy formulation, strategy implementation, and evaluation and control.

1. 1. Environmental Scanning

Environmental scanning involves monitoring the external environment for opportunities and threats that could impact the organization. For example, a business can analyze its strengths, weaknesses, opportunities, and threats. This information can then be used to develop a strategic plan.

2. Strategy Formulation

This step involves developing a plan of action that will achieve the organization’s objectives. These objectives are then used to develop the organization’s competitive strategy.

3. Strategy Implementation

Strategy implementation is the process of putting a chosen strategy into action in order to achieve desired objectives. It involves the design and execution of programs, actions, and decisions to carry out the strategy. It also entails allocating resources to different activities, tasks, and projects to support the strategy.

4. Evaluation and Control

Evaluation and control is the fourth and final step in the strategic management process. This step involves periodically assessing the organization’s progress towards its objectives and making necessary adjustments to the plan of action. It is also important to identify any potential problems that could impact the organization’s ability to achieve its objectives and take corrective action if necessary.

The strategic management process is a systematic process that helps organizations develop and implement effective strategies to achieve their desired objectives. It involves four main steps: Scanning the environment, developing a plan to achieve its strategic objectives, implementing the chosen strategy, and evaluating the results.