Strategic Mangement Process
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Strategic Management Process
Strategic management provides overall direction to the company and involves specifying the organization's role and future vision. Management develops a strategic plan, then turn’s that thought into a process. Implementing the process is more productive when everyone in the business understands the strategy. Some benefits of strategic management include a clear sense of strategic vision for the company, a sharper focus on what is important, and an improved understanding of the rapidly changing environment. Gaining and sustaining competitive advantage requires rapid technical and technological adjustment, huge investment, and a high level of production and sales flexibility, regarding not only product width and depth but also line size, sales, and after-sales services (Kaličanin, D., & Knežević, V., 2013).
The process starts with mission objectives, which state the company’s visions, values, and the firm’s purpose. These are the goals the company has for its future. Environmental Scanning is next and it involves the internal analysis of the company’s budget. The external SWOTT profile shows the strengths, weaknesses, opportunities, threats and trends that are recognized (Carpenter, M. A., & Sanders, W. G., 2009). After the findings of SWOTT, the Strategy Formulation is implemented by using the information from the Environmental Scanning to gain a competitive edge on ones rivals. Then the firm will use Strategy Implementation to select the strategy. This part accomplished by utilizing the budgets, programs, and procedures, and finally the company will use the stage called Evaluate and Control. In this final stage, a firm with good leadership will make the corrections and adjustments necessary for the plan to work (Carpenter, M. A., & Sanders, W. G., 2009).
Johnson & Johnson uses this process by using a set of strategic principles. They focus on healthcare and managing it long term with a decentralized management approach,...
Strategic management provides overall direction to the company and involves specifying the organization's role and future vision. Management develops a strategic plan, then turn’s that thought into a process. Implementing the process is more productive when everyone in the business understands the strategy. Some benefits of strategic management include a clear sense of strategic vision for the company, a sharper focus on what is important, and an improved understanding of the rapidly changing environment. Gaining and sustaining competitive advantage requires rapid technical and technological adjustment, huge investment, and a high level of production and sales flexibility, regarding not only product width and depth but also line size, sales, and after-sales services (Kaličanin, D., & Knežević, V., 2013).
The process starts with mission objectives, which state the company’s visions, values, and the firm’s purpose. These are the goals the company has for its future. Environmental Scanning is next and it involves the internal analysis of the company’s budget. The external SWOTT profile shows the strengths, weaknesses, opportunities, threats and trends that are recognized (Carpenter, M. A., & Sanders, W. G., 2009). After the findings of SWOTT, the Strategy Formulation is implemented by using the information from the Environmental Scanning to gain a competitive edge on ones rivals. Then the firm will use Strategy Implementation to select the strategy. This part accomplished by utilizing the budgets, programs, and procedures, and finally the company will use the stage called Evaluate and Control. In this final stage, a firm with good leadership will make the corrections and adjustments necessary for the plan to work (Carpenter, M. A., & Sanders, W. G., 2009).
Johnson & Johnson uses this process by using a set of strategic principles. They focus on healthcare and managing it long term with a decentralized management approach,...