August 13, 2011
Introduction to Strategic Management
The success of a business requires foresight detailed planning. The process of planning is the effort to project our goals forward in time and seeks to anticipate those actions that must take place in order to achieve them. Planning in business can be broken into three hierarchal levels, Strategic, ...view middle of the document...
Like the larger planning model, these too many overlap in varying degrees depending on the organization’s construction (Pearce & Robinson, 2010). Management at the highest planning levels requires those in positions of power to continuously redefine the company’s function through a cyclic analysis of the following four steps: Environmental scanning, strategy formulation, strategy implementation and evaluation. Initially information, statistics and any other data relating to the business is collected and analyzed. This research includes both internal and external evaluation to determine what influences are affecting the organization. It should be noted that this step must be constantly repeated in order to improve service, production, and profits. Once this step is complete leaders can begin to establish various courses of action. Contingency planning, or war-gaming, allows
Strategists, to play out the possibilities and potential solutions without risking organizational stability or capital. Once the best courses of action have been identified managers are able to formulate and categorize strategies into the planning sub-level previously listed. The third step in the process is implementation, which is the act of turning a course of action into real action. This is the “doing” phase of the process and will ultimately require an integrated effort at all levels of the organization. This step may include structural design, resource distribution, and human resource management and establishing organizational decision-making procedures. Finally, the active strategies must be evaluated to ensure they are supporting expected objectives. (“ Strategic Management,” n.d.). The key to success in this area is maintaining a vigilant watch over internal and external factors affected by the strategies, evaluating performance levels and modifying the corporate mission if needed. In order to accomplish this those involved in the strategic corporate mission if needed. In order to accomplish this, those involved in the strategic management process must seek out feedback from throughout the organization so that this input can be applied to future decision-making (Pearce & Robinson, 2010). One of the most vital components of strategic management is the establishment, distribution and enforcement of the organization’s intangible goals. Often time these will be represented by a corporate mission statement, a company vision or a unifying philosophy. Businesses may choose to utilize all of these separately or just focus on one. There are also examples of the various portions of larger organizations having their own specific version, but at the core of every organization should exist a “final intent” that drives everyone toward a common goal. That being said, simply writing a vision, mission or philosophy is not sufficient. Once drafted, they must be communicated to and understood by every employee (permanent or contracted). The final step to the successful development...