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process of strategic_management

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Strategic management is a field that deals with the major intended and emergent initiatives
taken by general managers on behalf of owners, involving utilization of resources, to enhance the
performance of rms in their external environments. It entails specifying
the organization's mission, vision and objectives, developing policies and plans, often in terms of
projects and programs, which are designed to achieve these objectives, and then allocating
resources to implement the policies and plans, projects and programs.
Strategic management is a level of managerial activity under setting goals and over Tactics.
“Strategic management is an ongoing process that evaluates and controls the business and the
industries in which the company is involved; assesses its competitors and sets goals and strategies
to meet all existing and potential competitors; and then reassesses each strategy annually or
quarterly to determine how it has been implemented and whether it has succeeded or needs
replacement by a new strategy to meet changed circumstances, new technology, new competitors,
a new economic environment., or a new social, financial, or political environment.” Strategic
Management can also be defined as "the identification of the purpose of the organisation and the
plans and actions to achieve the purpose.
The strategic management process represents a logical, systematic, and objective approach for
determining an enterprise's future direction. However, a clear separation is needed between the
managerial process by which an organization formulates, evaluates, implements, and controls the
relationships between its objectives, its strategies, and its environment.
Strategy Formulation
Strategy formulation is the process of establishing the organization's mission, objectives,and choosing
among alternative strategies. Sometimes strategy formulation is called"
strategic planning
."
Strategy Implementation
Strategy implementation is the action stage of strategic management. It refers to decisionsthat are
made to install new strategy or reinforce existing strategy. The basic strategy -implementation activities
are establishing annual objectives, devising policies, andallocated resources. Strategy implementation
also includes the making of decisions withregard to matching strategy and organizational structure;
developing budgets, andmotivational systems.
Strategy Evaluation And Control
The final stage in strategic management is strategy evaluation and control. All strategiesare subject to
future modification because internal and external factors are constantlychanging. In the strategy
evaluation and control process managers determine whether thechosen strategy is achieving the
organization's objectives. The fundamental strategyevaluation and control activities are: reviewing
internal and external factors that are the bases for current strategies, measuring performance, and
taking corrective actions
Strategic Management Models
Strategic management is a broader term that includes not only the stages already identified but also the
earlier steps of determining the mission and objectives of an organization within the context of its
external environment. The basic steps of the strategic management can be examined through the use of
strategic management model. The strategic management model identifies concepts of strategy and the
elements necessary for development of a strategy enabling the organization to satisfy its mission
.Historically, a number of frameworks and models have been advanced which propose different

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normative approaches to strategy determination. However, a review of the major strategic management
models indicates that they all include the following elements:
1.Performing an environmental analysis.
2.Establishing organizational direction.
3.Formulating organizational strategy.
4.Implementing organizational strategy.
5.Evaluating and controlling strategy.
Greenly stated that strategic management offers the following benefits:
1. It allows for identification, prioritization, and exploitation of opportunities.
2. It provides an objective view of management problems.
3. It represents a framework for improved coordination and control of activities.
4. It minimizes the effects of adverse conditions and changes.
5. It allows major decisions to better support established objectives.
6. It allows more effective allocation of time and resources to identified opportunities.
7. It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc decisions.
8. It creates a framework for internal communication among personnel.
9. It helps integrate the behavior of individuals into a total effort.
10. It provides a basis for clarifying individual responsibilities.
11. It encourages forward thinking.
12. It provides a cooperative, integrated, and enthusiastic approach to tackling problems and
opportunities.
13. It encourages a favorable attitude toward change.
14. It gives a degree of discipline and formality to the management of a business.

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Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. Strategic management is a level of managerial activity under setting goals and over Tactics. “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.”  Strateg ...
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