...Steeley Rapier III June 24, 2013 MGT/498 Strategic Management Tugtekin Gokaydin The Strategic Process The strategic process is a very important concept in the business world and it helps show companies what is working and what may not be working. There are four parts in this process and each part plays a pivotal rule: Environmental scanning, strategy formulation, strategy implementation, and evaluation. This process is very similar to a cooking recipe because each part helps the other and without one the end result will be inaccurate. Many companies use this strategy and Johnson & Johnson does as well. They follow this process and they do it by organizing local management to focus on their area because they are the ones that know the area best, but they still have one management team to make overall all decisions for the company as a whole. Environmental scanning can be defined as “the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market” (Wheelen, T. L., & Hunger, J. D. (2008). Strategy formulation “is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies based on the scanning” (Wheelen, T. L., & Hunger, J. D. (2008). Strategy implementation implies making the strategy...
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...RUNNING HEAD: STRATEGIC MANAGEMENT PROCESS Strategic Management Process Marty Carbajal MGT/498 Strategic Management F. Everett Hardee June 24, 2013 The purpose of this paper is to illustrate and discuss the components of the strategic management process and to indicate why such a process is necessary for an organization. Strategic management involves several steps, one of which most fundamentally is strategic planning as the organization needs to determine where in the business environment it exists and where it is going. Strategic Management Strategic management involves a series of management decision, plans, and actions that involve the long run performance of the organization. These actions include environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring, and evaluating of external opportunities and threats considering a corporation’s strengths and weaknesses (Wheelen & Hunger, 2010). Strategic management is a method of recognizing and executing the mission of the organization by matching its capabilities with the demands of its environment. It is to identify the organization’s strengths and weaknesses while exploiting its strengths and minimizing its weaknesses. These steps are used to create competitive advantages and advance toward a vision created for the organization. Phases...
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...The Strategic Planning Process In the 1970's, many large firms adopted a formalized top-down strategic planning model. Under this model, strategic planning became a deliberate process in which top executives periodically would formulate the firm's strategy, then communicate it down the organization for implementation. The following is a flowchart model of this process: The Strategic Planning Process Mission | V Objectives | V Situation Analysis | V Strategy Formulation | V Implementation | V Control This process is most applicable to strategic management at the business unit level of the organization. For large corporations, strategy at the corporate level is more concerned with managing a portfolio of businesses. For example, corporate level strategy involves decisions about which business units to grow, resource allocation among the business units, taking advantage of synergies among the business units, and mergers and acquisitions. In the process outlined here, "company" or "firm" will be used to denote a single-business firm or a single business unit of a diversified firm. Mission A company's mission is its reason for being. The mission often is expressed in the form of a mission statement, which conveys a sense of purpose to employees and projects a company image to customers. In the strategy formulation process, the mission statement sets the mood of where the company should go. Objectives Objectives are concrete goals that the organization seeks...
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...Strategic Management Process Strategic Management Process Every company wants to achieve long term goals and objectives. Every company needs a strategic plan in order to achieve that. A company must evaluate the demands and expectations of their stakeholders when forming a strategic plan. The discussion for this paper will be about the main components of a strategic plan process and explaining why it is needed for a company to achieve long term goals and objectives. This paper will also discuss the strategic management process of National Aeronautics and Space Administration (NASA) Company. Four Phases According to (Wheelen & Hunger, 2008).) “strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation.” A manager will go thru the four phases of the strategic management process so that he/she is able to perform the job duties so that the company can stay competitive with other companies. Phase one is basic financial planning. This involves assignments, projects, and tasks that are based on small analysis. When managers are asked to propose the following year’s budget they take planning seriously, even though most of the information comes from within the company. Phase two is forecast-based planning. The planning should take at least three to five years to finish. Mangers will attempt a five year plan because annual budgets become useless for the long-term planning .Environmental and internal information...
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...Business600: Strategic Management Process Literature Review Keyona Henderson Liberty University July 04, 2014 Strategic Management Process Introduction The strategic management process is more than just simple rules. It is a rational approach used in businesses. It starts with management thinking strategically, then applying steps and thought to a process. This process should be understood by everyone in the business. Although it starts with upper management, it should be implemented throughout the entire business and everyone should be included. According to Popescu, in the International Conference on Management and Industrial Engineering “The process of strategic management consists of an ongoing analysis, decisions, and actions activities to create and sustain competitive advantages in order to obtain desired competitive position and achieve strategic objectives”(Popescu,2013). This process is not one simple step and can be complex. It is not a onetime occurrence and can happen multiple times. The ongoing analysis, decisions, and actions that are performed should include all people involved. Everyone should be on the same page throughout the strategic management process. Goal Setting It is important for any business to set goals. Goals give businesses a purpose. It helps to organize the direction in which a business should take. Businesses should always have goals and let the goals be clear. Goals should be clear to both managers and employees. Short term and...
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...Strategic Management Process Mitchell Jaques MGT/498 August 23, 2011 Dr. Earl Levith Strategic Management Process Strategic management is an essential process for managerial decision making. This is a special process for planning and implementing actions that may determine a company’s long-term performance. This will require a business to conduct internal and external scanning and environmental analysis, strategic implementation is required, evaluation, and control. Strategic management encompasses the use of the SWOT analysis, (Strengths, Weaknesses, Opportunities, and Threats), to incorporate strategic planning and industry analysis (Wheelen & Hunger, 2010). Primary Components of Strategic Management In a normative or prescriptive approach to the strategic management model, we would generally reflect an explicit, planned, and rational approach of the process (Ginter & Duncan, 1985). According to the Ginter & Duncan (1985) website, this model was based of empirical research and creates a broader-based model. In this model there are eight stages of this process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. While the normative strategy hits all the main components of strategic management, there has been a more modern formula created for the strategic...
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...Strategic Management Process Monique Hayes-McCallum November 13, 2012 MGT/498 Cliff Lavin The Process The basic elements of the strategic management process are environmental scanning which is the gathering of information; strategic formulation & implementation which is the developing of a plan and then putting that plan into action; and evaluation and control or the monitoring of the performance of the plan. Once referred to as “business policy”, strategic management is represented as a specific “set of managerial decisions and actions that determines the long run performance of a corporation; while incorporating things such as strategic planning, environmental scanning, and industry analysis.” (Wheelen & Hunger, 2010) Strategic plans aid in a company’s ability to be successful in the long run by mapping out specific goals and guidelines in which those goals should be met. “In order for a business to be successful in the long run, it must not only be able to execute current activities to satisfy an existing market, but they must also adapt those activities to satisfy new and changing markets.” (Wheelen & Hunger, 2010) When researching companies and their strategic management, Estee Lauder was a company that seems to stand out. Their, Estee Lauder, main business is the manufacturing and the marketing of all their products and licenses; distributing it’s products through various avenue’s for market position and audience, such as department stores and...
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...Strategic Management Process Paper Strategic management process is used by companies in order to define the strategies the company uses to achieve success. The process encompasses four components which are carried out in steps and, will be defined. This paper will also include the reasons why these processes are used in a business. A company by the name of Publix Supermarkets will be researched, along with the process the company uses. Strategic management is an ongoing process, and each of these processes coincides with one another. Primary Components of a Strategic Management Process The four components of the strategic management process are environmental scanning, strategy formulation, strategy implantation, and strategy evaluation. These steps are carried out in order, and begin the process of creating a strategic management plan ("Strategic Management Process-Meaning, Steps, And Components", 2013). Again, strategic management plans are ongoing and evaluate the company’s position in their field, along with their competitors. After the evaluation, the plan aims to realign the goals of the company for present and future goals ("Strategic Management Process-Meaning, Steps, And Components", 2013). Publix Supermarket Publix Supermarkets has their own department to handle the company’s strategies. According to "Strategy Support" (2014), “Together we're improving existing processes, developing new strategies, and making plans to grow our company.” The company states...
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...Running head: STRATEGIC MANAGEMENT 1 The Strategic Management Process GiGi Davis MGT/498 – Strategic Management Ms. Linda Davis STRATEGIC MANAGEMENT 2 The Strategic Management Process is comprised of four components, which are: Environmental Scanning/goal-setting/analysis, strategy formulation, strategy implementation, and strategy evaluation and control. All of the strategies mentioned are equally important. Strategic Management is more than asset of guidelines or rules. When management or the Board of Directors devise a plan through a very selective thought process and everyone is prepared for implementation, this is the Strategic Management Process. ➢ (Environmental Scanning) Goal Setting – The company’s vision. Defines long-term and short-term goals, how the vision will be accomplished, and the mission and objectives for staff. Analysis – Data in relation to the vision; SWOT Analysis. ➢ Strategy Formulation – The overall review, determination, identify and prioritize all external and internal resources. ➢ Strategy Implementation – Anything dealing with the funding and the overall structure of the organization. At this point everything is secured, including employees and the implementation of the plan begins. ➢ Strategy Evaluation and Control – As simple as the monitoring of performance measures, what isn’t evaluated and controlled can’t...
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...Strategic Management Process November 22, 2010 Strategic Management Process Strategic planning is key to the success of any organization. According to Wheelen and Hunger, strategic management is a compilation of goals that will determine the future of an organization. Strategic planning includes internal and external environmental scanning, strategic or long-range planning, implementation, followed by evaluation, and control (2010). An organization will attempt to follow the four phases of strategic management to ensure success. The four phases are financial planning, forecast-based planning, external-oriented planning, and strategic management. Financial planning allows the managers to commence a serious planning process to create a budget for the next year. The ideas that the management proposes are usually based on information from the firm with little analysis done prior. Input comes from the sales forces but lacks environmental information. The basic financial planning usually halts normal work for a time to create a proposed budget and the time horizon in one year. The next phase is forecast-based planning so that a three to five-year plan will be created. The projects taken into consideration may be longer than a year in length. Managers gather both internal information and environmental data to create a possible trend for the next five years. Although this phase is time-consuming it is required to weed through the political aspects, evaluate proposals, and justify...
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...The Strategic Management Process Strategic management is a group of actions and decisions created by a management team to help determine the long range outcome of the company. In this paper one will learn about the four phases of the strategic management process as well as why it is important for companies to have one. Basic financial planning Phase one of the strategic management process is Basic Financial Planning. The basic financial planning phase is also known as the formulation phase in the strategic management process because it is during this phase where the company forms and develops a well thought out strategy to help achieve the company’s main objectives for the next year and then propose a budget and develop a strategy based on little information from the sales force. While this phase is generally tackled by top executives and senior management it is often left for general management to complete. Forecast-based planning Phase two of the strategic management process is Forecast Based Planning. The forecast based planning phase is also known as the implementation phase of the strategic management process and its purpose is to take one project at a time from the proposed strategy and implement it into the workforce starting with senior management and working down to standard employees. This is a very time consuming part of the process as management will continuously collect feedback from others working on the project as well as they need to make sure that they...
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...Strategic Management Process By: MGT/498 Date: Strategic Management Process Below I will describe what the purpose of strategic planning or management is and why it is so important to have a strategic management process within the organization. I will also take a look at Johnson & Johnson and describe their strategic management process. According to Hunger and Wheelen strategic management is “a set of managerial decisions and actions that determines the long-run performance of a corporation” (Hunger, D.J. & Wheelen T.L, 2010, p. 5). This process includes checking for internal and external drivers, long range planning, implementation, and evaluating how the plan is working (Hunger, D.J. & Wheelen T.L., 2010). Every possible route and influence must be looked at when developing the plan. The strategic management process has four phases. First there must be financial planning. No matter what the strategic plan is, there must be money allocated in the budget. Secondly, long-range plans are developed usually on a five or three year term. Thirdly, after the internal drivers are thoroughly examined the external drivers must be scanned. Some of those drivers could be the economy and competitors. Finally the last phase is the strategic management, which incorporates input from lower level management. (Hunger, D.J. & Wheelen T.L., 2010). The strategic management process is important because it enables organizations to plan for the future. Any company...
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...Strategic Management Process Angela Howard MGT/498 August 28, 2013 Glenn O’Steen Components The primary components of the strategic management process are environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Environmental scanning is described to be “the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen, 2010). Environmental scanning is usually used to classify strategic influences that will control the future of the corporation. Strategy formulation is the act of rising long-term tactics for the future of a company by using the company’s strengthens, and weaknesses, for the efficient management of environmental opportunities and pressure. Strategy implementation is the putting in action of the strategies formulated by a corporation. Lastly, evaluation and control includes the monitoring of corporate activities and performance in order to compare the actual results, to the ones that are set as goals. Strategic management helps a company sustain long-term performance. For companies that do not practice strategic management, it is very hard to attain and to sustain long-term performance. Most companies when they have finally attained a high performance level will soon experience a decrease in their performance. Strategic management will help a company understand, and realize that the environment around them is constantly changing...
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...communication. These characteristics are associated with strategic management such as who will run the business? How will the business make money? Will the business sell items? What items and who will be the target buyers? Or what is the purpose of the business. These questions are in line with the strategic management process and why the process is needed. Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation (Wheelen & Hunger, 2008, p. 5). A strategic management plan primary components generally will include environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Environmental scanning helps a business identify current and future issues along with “monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2008, p. 10). Strategy formulation is the most imperative portion of the plan mainly because it focuses on “effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses” (Wheelen & Hunger, 2008, p. 12). Management is a key component; without effective management theirs no one to implement, enforce and enhance the company. Managers also work with associated whom generally find the flaws that will ultimately help the business. Strategy implementation is “process by which strategies and policies are put into action through...
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...THE PROCESS OF STRATEGIC PLANNING ARTICLE #1 OF 10 INTRODUCTION TO STRATEGIC PLANNING Strategic planning is to a business what a map is to a road rally driver. It is a tool that defines the routes that when taken will lead to the most likely probability of getting from where the business is to where the owners or stakeholders want it to go. And like a road rally, strategic plans meet detours and obstacles that call for adapting and adjusting as the plan is implemented. Strategic planning is a process that brings to life the mission and vision of the enterprise. A strategic plan, well crafted and of value, is driven from the top down; considers the internal and external environment around the business; is the work of the managers of the business; and is communicated to all the business stakeholders, both inside and outside of the company. As a company grows and as the business environment becomes more complex the need for strategic planning becomes greater. There is a need for all people in the corporation to understand the direction and mission of the business. Companies consistently applying a disciplined approach to strategic planning are better prepared to evolve as the market changes and as different market segments require different needs for the products or services of the company. The benefit of the discipline that develops from the process of strategic planning, leads to improved communication. It facilitates effective decision-making, better selection of tactical options...
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