Question

Question 1 (about 500 words)
Illustrate the stages of strategic management

Answer 1

The strategic management process is more than just a set of guidelines to be followed. It's a philosophical approach to business. Upper management must first think strategically, then add the thinking to the operation. The strategic management process is best applied when everybody within the organization understands the plan.

Clarify Your Vision- The goal-setting is to clarify the vision for your business. This stage consists of identifying three key facets: first, defining both short-and long-term objectives. Second, describe the method of how to achieve your goal. At the end of the day, tailor the process for your workers, give each person a role in which he can excel. Keep in mind, during this phase, that your goals are comprehensive, practical and consistent with the principles of your vision. Typically, the final step at this stage is to write a mission statement that briefly communicates your objectives to both your shareholders and your staff.

Gather and Analyze Information-Analysis is a key stage because the information gathered at this stage will shape the next two stages. At this stage, gather as much information and data relevant to your vision. The research will concentrate on understanding the needs of a company as a sustainable organization, its strategic path, and identifying initiatives that will help the business grow. Examine any external or internal problems that can influence your goals and priorities. Be sure you recognize both the strengths and weaknesses of the company and any risks and opportunities that can emerge along the way.

Formulate a Strategy- The first step in the implementation of a plan is to evaluate the knowledge obtained from the completion of the study. Determine what tools the organization currently has that can help to achieve the goals and objectives set. Identify any areas for which an undertaking may pursue external support. The concerns facing the organization should be given priority over their contribution to your performance. Once prioritized, start formulating the plan. Since market and economic conditions are dynamic, it is important at this point to establish alternative solutions that address each phase of the plan.

Implement Your Strategy- Successful implementation of the strategy is crucial to the success of the business venture. This is the stage of action of the strategic management process. If the overall plan does not fit with the current business framework, a new structure should be placed in place at the beginning of this point. Everybody within the company must be made transparent about their roles and duties and how that fits into the ultimate objective. In addition, at this point, all resources or funding for the undertaking must be secured. When the funding is in place and the workers are ready, execute the program.

Evaluate and Control- Strategy assessment and management activities include performance analysis, comprehensive examination of internal and external problems, and corrective action where appropriate. The definition of the parameters to be measured begins with any successful evaluation of the strategy. Such parameters will be a representation of the objectives set in stage 1. Determine the success by evaluating the real outcomes against the program.

Monitoring internal and external problems will also allow you to adapt to any major change in your business climate. If you decide that the plan is not moving the business towards its target, take corrective action. If these steps are not successful, repeat the strategic management process. Since internal and external problems are continually changing, any data collected at this stage will be maintained to assist with any potential strategies.