Chapter 9, Problem 1RDQ

Describe the six steps in the strategic management process.

Summary Introduction

To explain:

Six important steps in the strategic management process.

Introduction:

Strategies management refers to the strategy and plans for how an organization will do better in business, how well it will compete with other companies and how it will fulfill the consumer's demand in order to achieve its goal.

Explanation of Solution

The strategic management process refers to the organization’s strategies developed by the manager and other business executives. The strategic management process has six important steps, which are as follows.

1. Identifying the current goals and strategies

The first step in strategic management is identifying the current goals and strategies. This step is important because the organization's growth depends on its strategies and long term goals.

2. Perform an external analysis

Internal analysis indicates an organization's internal capability including, an organization’s workforce, cost position, and organization’s capability to compete with competitors in the market. The internal analysis also represents the organization’s internal weaknesses, strengths, threats, and opportunities.

3. Perform an internal analysis

The external analysis keeps an organization updated with new trends, events, and technology. If the internal strengths of an organization are not strong enough then it does not mean that the organization cannot make a good decision. The organization can also make a better decision according to the external sources even if the internal resources are weak.

4. Formulation of strategies

Formulation of strategies refers to the business activities that are accomplished by the formulation of the strategy is known as the formulation of strategies. Formulation of strategies includes the mission and vision of an organization, internal and external threats, identifying external business opportunities, establishing long term goals.

5. Implementation of strategies

Implementation of strategies refers to the action plan of the strategic management process. In this stage, managers and employees have been involved in some activities. So, the formulated strategies can be put into some action.

6. Evaluation of strategies

This is the last stage of the strategic management process. In this stage different activities including, measurement of performance, evaluating internal and external factors, that is the platform for the current strategies, and analyzing corrective measures. This becomes the responsibility of the business executives to evaluate the problems and inaccurate working strategy.