Strategic management is a complex and demanding process that requires a great deal of discipline, commitment, and sacrifice. It is the process of making decisions and taking actions to ensure that an organization meets its objectives. It involves analyzing the external and internal environment of the organization, formulating strategies, implementing them, and evaluating their effectiveness. In this article, we will explore the three main components or stages of strategic management: environmental scanning, strategy formulation, and strategy implementation.
Environmental scanning is the process of collecting, analyzing, and providing information for strategic purposes. It helps managers identify external opportunities and threats, as well as internal strengths and weaknesses. This data is then used to create a vision and mission for the organization, set long-term objectives, generate alternative strategies, and choose specific strategies to pursue. Strategy formulation involves deciding what new companies to start, which companies to abandon, how to allocate resources effectively, if it is to expand operations or diversify, whether to enter international markets, if to merge, and how to avoid hostile takeovers.
It also includes developing e-commerce strategies that take advantage of the growing popularity of online shopping. Finally, strategy implementation involves making the strategy work as intended. This includes designing the organization's structure, distributing resources, developing the decision-making process, and managing human resources. It also includes ensuring that the strategy chosen by the organization is being implemented correctly.
In conclusion, strategic management is a complex process that requires a great deal of discipline and commitment. By understanding the three main components or stages of strategic management – environmental scanning, strategy formulation, and strategy implementation – organizations can ensure that they are taking the right steps towards achieving their goals.