Chapter 2, Problem 1RQ

Describe the major components of the strategic management process.

Summary Introduction

To determine:

Major components of the strategic management process.

Introduction:

Strategic management process is the process which defined the organization’s strategies. It also refers to the process through which managers put down the strategies for the firm, which are important for an organization to achieve better and appropriate performance.

Explanation of Solution

The strategic management process is the best approach implemented when every individual in the business understands the strategy.

Major components of the strategic management process are as follows:

1. Environment Scanning:

Environmental scanning is the process of accumulating, analyzing, and providing information for strategic purposes. It also helps in securitizing internal and external factors affecting an organization.

2. Strategy Formulation:

Strategy formulation refers to the process of deciding the best approach for accomplishing the organizational task and achieving organizational goal.

3. Strategy Implementation:

Strategy implementation refers to the process through which an organization works on the chosen strategy. In this phase, organizations convert their strategies into actions. Strategy implementation comprises mapping the organization’s structure, marketing, distributing resources, and managing resources.

4. Strategy Evolution:

Strategy Evolution is the last step of the Strategic Management Process. The major activities of the strategy evolution include evaluating internal and external factors that are the origin of present strategies, evaluating performance, and taking appropriate actions.