Strategic Management

Strategic Management
  Strategic management is defined as a set of decisions and actions that result in the formulation and implantation of plans designed to achieve a company’s objectives (Pearce & Robinson, 2009).   Some of the components of the strategic management process includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control.   “The study of strategic management, therefore, emphasizes the monitoring
and evaluating of external opportunities and threats in light of a corporation’s strengths
and weaknesses” (Wheelen & Hunger, 2010, p. 6).   Furthermore, strategic management is now used by all types or organizations, large and small, mainly as an effort to avoid costly mistakes that may lead   to ruin as well to prepare the organization for the ever changing business environment.
The first component of strategic management is environmental scanning which entails gathering of information through the SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis.   The SWOT analysis identifies and assesses the external and internal factors that may affect the strategic plan.   The organization’s external factors are its opportunities and threats such as its natural environment resources and climate, societal environment, and task environment.   The internal factors are its strengths and weaknesses such as the organization’s structure, culture, and resources.   The next phase in strategic management is the strategy formation that requires that the organization establish its mission, objectives, strategies, and policies.   Strategy implementation would follow where the organization establishes programs, budgets, and procedures needed to accomplish its objectives.   Lastly, the organization needs to evaluate and control the performance   based on actual results.
“Taking a strategic risk is what General Electric (GE) did when it launched its Ecomagination strategic initiative in 2005” (Wheelen & Hunger, 2010, p. 3)   GE...