The Strategic Management Process

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Explanation of What Manager Does through the Six Steps Process of Strategy Management

The Process of Strategy Management:

The process of Strategy Management (as per Exhibit 9-1) is probably a six step procedure that includes plan, implement and lastly evaluate. Often it has been seen that some best strategy could also fail if they are not handled or evaluated carefully.

Process of Strategy Management 1Step 1: Identify organization current goals, mission and other strategies

It is a fact that each organization needs to set a mission which turns out to be statement for purpose. While defining these mission managers are forced to identify why they are in for business. For example, Avon has a mission of “To be a best known company that can serve the clients better with products, service and also self fulfillment of women upon a global range by understanding them better”. The mission from one popular Facebook is “to connect users with people around them”. Another great mission by the National Heart Foundation at Australia is “reduce the sufferings and death of people due to stroke, heart and other blood vessel diseases from Australia”. All such statement would provide you with clues what they view as the purpose. Thus, what should statement for mission include? The exhibit 9-2 shows its description with certain component.

Step 2: External Analysis

Which type of impact the following trend could have on businesses?

  • With National Health care legislative passage it has been estimated that all big restaurants have to post their calorie information’s on the menu list and also drives them with various signs.
  • For data transmit and retrieval more of the cellular phones are used by all customers rather than those phone calls.
  • Sharing of new way of high school graduate being enrolled in colleges has hit a higher record in year 2009 and still continues to move high.

The external surrounding has been discussed as in the Chapter 2 as a necessary constraint for the action of a manager. For analyzing such environment is strictly tough for strategy managerial processes. Usually Managers go for external analysis such that they could make a note of what a competition is meant for, how the pending legislation effects organization, what does a labor supply looks for a location where they are supplied. In any of the external analysis some managers should make attempts to examine economic, political or legal, demographic, technological, sociocultural, and other global components such that changes through the trends could be visualized.

Once the environment has been analyzed, the managers are required to pinpoint those opportunities that usually organizations can easily exploit or threaten and buffer against them. Opportunities always play a positive trend for any external environment whereas the threats are negative.

Process of Strategy Management 2Step 3: Analyzing the internals

Now here we move further to internal analysis, thus which usually provides necessary information about all specific resources of an organization and also its capabilities. Organizational resources are all its assets like financial, human, physical and intangible. They use these for developing, manufacturing, and delivering products to all customers. These are what actually an organization has. Capabilities are the skills and other abilities for doing work that usually activities needed for their business continuation. Thus ultimately they aim at how to do the work. Major value oriented creating capability of organization is mostly named as core competency. Both the resources and other core competencies thus determine the weapons of the competitive organization.

After doing all analysis internally manager must be expert to recognize all strength and weakness of organization. Thus any activity that companies do well or with some uniqueness falls beneath strengths. The works that organization does not do well are genuinely the weaknesses.

The combination of both external as well as internal analysis is called SWOT analysis. This SWOT analysis is basically organization’s strength, opportunities, weaknesses, and threats. Once after completion of this analysis the managers get ready for making proper strategies like,

  • Exploit organizational strength and other external opportunity.
  • Protect that organization from any type of eternal threat
  • Correct the critical w

Step 4: Strategy formulation

As the managers formulate various strategies, thus they should be able to consider realities about external surrounding and the available resources with capability such that designs can be drawn to make the organizational goal achieved. The main strategies would include competitive, corporate and functional. We will be describing each one.

Step 5: Implementation of the strategy

Once all the strategies are being formulated they are bound to be implemented. It does not matter how well an organization have prepared the strategy but this might affect the performance if the strategy is not implemented well.

Step 6: Results of Evaluation

The final and last stage in the strategy management processes is result evaluation. How well the strategies might be effective to bring organization to reach its goal? What types of adjustments are needed? After going through previous results of previously formed strategies and in determining the changes that were needed, Xerox’s CEO, Ursula Burns has made proper strategies adjustments in order to regain her market shares and also improve bottom line of company. The company genuinely cuts the job, sold the assets, and simultaneously reorganizes management. (See Leaders who probably make a Difference of box on page 230).


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