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Model of Strategic Management

Strategic management means identification and description of strategies that a business organization can carry to achieve better performance and a competitive advantage for their organization. Basically, strategic management deals with making and implementing decisions about future direction of an organization. The basic model of strategic management is as follows:

Strategic Management Assignment Help

This basic model of the strategic management is both rational and prescriptive. It is also known as planning model that identifies what a business organization should do in terms strategic management process.

Environmental Scanning: It is the monitoring, evaluating and disseminating of important and significant information from the internal as well as external environments. The main purpose of this is to identify strategic internal & external factors those will determine the future of the business organization.

Strategy Formulation: It is the development of long range plans for the effective management of environmental opportunities and threats in terms of strengths & weaknesses. The main aim of this stage is to define the corporate mission, specify achievable objectives, develop strategies and set policy guidelines.

Strategy Implementation: It is the process by which strategies and policies of the corporation are put in to action through the development of programs, budgets and procedures.

Evaluation & Control: It is the process in which corporate activities and performance results are monitored, so that actual performance can be compared with desired performance.

Importance of Strategic Management Process

Strategic management process is essential for the business organization, as with the help of strategic management process, business organization can achieve the competitive advantages for the growth & success of the business organization. In addition, the process of strategic management avoids stagnation through continuous self examination and experimentation. Along with this, with the help of strategic management process, business organization can scan the environment for the critical information & improve the work methods.

For example, Motorola developed an action learning format in which people from the marketing, product development and manufacturing meet to argue and reach agreement about the needs of the market and the best new product. Hence, strategic management process is an essential tool for the overall success of the business organization. The process of strategic management also identifies the strategic purpose & aims and sets the fundamental aims or goals for the success of the business organization. Additionally, with the help of this process, business organization can access the internal and external environment.

Strategic management process also implements the new strategies via management structure. It also provides several financial and non-financial benefits to the business firms. For instance, strategic management process increases the sales revenues, improve profitability and productivity. It also improves understanding of competitor’s strategies & provides tangible tools for dealing with the stress of change. In addition, the process of strategic management also provides clear guidelines for day-to-day decision making to the management. Hence, strategic management process is essential for the growth and overall success of an organization.

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