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Strategic Planning Process Paper

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Accounting

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Strategic Management Process
RUNNING HEAD: STRATEGIC MANAGEMENT PROCESS
Strategic Management Process
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).

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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 of Strategic Management
Organizations go through different stages of strategic management,
these phases evolve into more complicated and formal types of
strategic planning, as they develop they get more detailed, refined,
and granular.
Strategic management, in its most basic form includes financial
planning that consists of budgeting projects for the time the budget is
for (usually one year). This type of planning involves information
from within the firm and is very simple.
Another phase of strategic planning includes forecast-based planning,
which involve longer term planning and take in information from
within the company and environmental data, such as opportunities
and threats that could affect the organization.
A third type of financial management includes externally oriented
strategic planning, which is when the organization seeks to increase
its responsiveness to changing markets and competition by thinking
strategically. “Planning is taken out of the hands of lower-level

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managers and concentrated in a planning staff whose task is to
develop strategic plans for the corporation. Consultants often provide
the sophisticated and innovative techniques that the planning staff
uses to gather information and forecast future trends” (Wheelen &
Hunger, 2010) pp 5.
Finally in the last stage of strategic management the organization
develops and integrates diverse strategic plans intended to reach a
specific goal. This type of strategic management involves multiple
levels of management within the organization, typically everyone in
the organization is involved, and everyone knows and participate in
the strategy. “The sophisticated annual five-year strategic plan is
replaced with strategic thinking at all levels of the organization
throughout the year. Strategic information, previously available only
centrally to top management, is available via local area networks and
intranets to people throughout the organization. Instead of a large
centralized planning staff, internal and external planning
consultants are available to help guide group strategy discussions”
(Wheelen & Hunger, 2010) pp 6.
Elements of strategic management
Strategic management consists of four basic elements, and they
include environmental scanning, strategy formulation, strategy
implementation, and evaluation and control.
Environmental scanning

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