Every business has a set of rules which have to be followed. This is known as strategic management. The process of following these rules is referred to as strategic management process. However, strategic management process is much more than following the rules. It is a way to approach business. Higher management first thinks strategically and applies these thoughts to a process. This process works best when everyone within the organization is aware of the strategy. There are five stages of strategic management. This essay will discuss some of these stages.
One of the stages of the strategic management process is goal-setting. What is goal setting? Goal-setting enables the business to envision its progress. Three main factors affect goal-setting. Firstly, the business must be able to define short-term and long-term objectives. Then it needs to identify how the objective will be accomplished. Finally, every person within the organization should be given a task that enables him or her to reach these objectives positively. Every goal has to be detailed and should match with the values of the vision.
Another important stage of the strategic management process is analysis. This is vital as the next stages of strategic management process depend on the information gathered through analysis. What is the focus of the analysis? This is where the business should work at understanding the requirements of the business and the direction it is heading. It should also focus on identifying the methods used in order to ensure the growth of the business. Through analysis, the business should be able to examine any external or internal problems or issues that may arise and affect the achievement of the goals and objectives. The analysis should also identify the strengths and weaknesses of the business and any problems that may arise in future.
Once the analysis is complete the information gained should be reviewed in order to form a proper strategy. Through this analysis, the business should be able to identify resources currently in account which may be useful in achieving the goals and objectives. Areas where external resources can also be utilized for the goals and objective should also be examined. Every issue or problem should be prioritized in order of importance and in order of how it will help in the success of the business. The strategy may be formulated only upon prioritization. Every step along the way should also have an alternative plan. This is vital as the business world is uncertain and there is no telling what may be around the corner.
Once the strategy has been formulated, the implementation begins. A successful strategic management process is vital for the success of the business. This is when the action begins. Sometimes, the current strategy may not be in accordance with the business structure. Then, it should be changed at this stage. Every person within the organization should be made aware of their duties. Any resources or funding should be secured and when funding is seen to and in place the execution of the plan can begin.
The strategic management process should be clear and definite. It should provide the workers with an idea of how to go about their job. if it does not work, this strategy should be changed at once. Going with the right strategic management process is the only way a business will grow and succeed.