ASSINGNMENT ON

MORDERN
ORGANIZATION
AND
MANAGEMENT
TOPIC:
Explain what managers do in Strategic
Management Process
SUBMITTED TO:
MRS. ASHALATHA
MSNIM COLLEGE
SUBMMITED BY:
B Mahima Shenoy
CLASS:
1 YEAR MBA SECTION ‘A’
Strategic Management Process:
What Is It?
Strategic management refers to a branch of management that deals with an
organization’s strategic objectives. This may include the development of the
organization’s vision, outlining its operational objectives and coming up with and
implementing the organization’s strategies. It may also include the formulation and
application of deviation corrective measures where necessary. Strategic management
process should not be confused with strategic planning process, a related but
completely different branch of management. This article seeks to answer the question
“what is strategic management process” Before venturing deeper, first let us define
strategic management process.

The Philosophy of the Strategic Management Process

To define the strategic management process, look at it as a philosophical approach to
doing business. This is a blanket terminology that refers to a process by which
managers come up with, and implement an operational strategy that grants the
organization a competitive advantage. The upper management of an organization
must first use data analytics to think strategically, then use the strategic management
process to put the thought into action.

So, what is strategic management process?

Strategic management process is a continuous culture of appraisal that a business
adopts to outdo the competitors. Simple as it may sound, this is a complex process that
also covers formulating the organization’s overall vision for present and future
objectives.
The way different organizations create and realize their management strategies differ.
As a result, there are different models of SMP that the organization can adopt. The right
model depends on various factors including:

 The existing culture of the organization.

 Market dominance of the organization.
 Leadership style.
 The organization’s experience in creating and implementing SMPs.
 Industry and competition.
Why is Strategic Management Process Important?
The primary purpose of strategic management process is to help the organization
achieve a sustainable strategic competition in the market. When properly conceived and
implemented, SMP creates value for the organization by focusing on and assessing
opportunities and threats, then leveraging its strengths and weaknesses to help it
survive, grow, and expand. Strategic management process can help a business achieve
this by:

1. Acting as the reference for any major decisions of the organization.

2. Guiding the business to chart its future and move in that direction. SMP involves
formulating the organization’s goals, fixing realistic and achievable objectives,
and ensuring that they are all aligned with the company’s vision.
3. Assisting the business to become proactive, not reactive. With the SMP, the
business can analyze the competitor’s actions vis-à-vis market trends and come
up with the steps that must be taken to compete and succeed in the market.
4. Preparing the organization for any potential challenges and explore possible
opportunities that the business must pioneer in. The strategic management
process steps also involve identifying the best ways to overcome the challenges
and exploiting new opportunities.
5. Ensuring that the organizations copes with the competition in a dynamic
environment and survives in an uncertain market.
6. Helping in the identification and maximization of the organization’s competitive
advantages and core competencies. These are responsible for the business’
survival and future growth.

Steps of Strategic Management Process

There are five strategic management process steps that must be followed in their
chronological order.

1. Goal setting

This is essentially clarifying the organization’s vision. The vision will include short-term
and long-term objectives, the processes by which they can be accomplished, and the
persons responsible for implementing each task that culminates in the set goals.

2. Analysis

Analysis involves gathering the data and information that is relevant to accomplishing
the set goals. It also covers understanding the needs of the business in the market and
examining any internal and external data that may affect the organization’s goals.
3.Strategy Formulation
A business will only succeed if it has the resources required to reach the goals set in the
first step. The process of formulating a strategy to achieve this may involve identifying
which external resources the business needs to succeed, and which goals must be
prioritized.

4. Strategy Implementation

Since the purpose of strategic management process is to propel an organization to its

objectives, an implementation plan must be put in place before the process is
considered viable. Everyone in the organization must understand the process and know
what their duties and responsibilities are in order to fit in with the organization’s overall
goal.

5. Evaluation and Control

The evaluation and control actions for the strategic management process include
performance appraisal as well constant review of both internal and external issues.
Where necessary, the management of the organization can implement corrective
actions to ensure success of the SMP.
In order for a business’ efforts to have the most impact on a business’ bottom line,
strategic management process must be employed. This will also go a long way in

helping a business to survive stiff competition in the market.

Understanding Strategic Management

The strategic management model deals with the planning, analyzing,
and assessing different factors and inputs critical for production. It
also entails the evaluation, allocation, and exploitation of available
resources to achieve specified business objectives. The corporate
culture, internal structure, and skills of human resources influence the
strategy development process of an organization.
By identifying and managing strategies, a company can make
decisions about its future direction and performance. Also, with
strategic organizational management, top officials can learn from past
failures and devise an action plan. It further necessitates evaluating
potential threats and opportunities and analyzing possibilities for
operational improvement.

Let us understand this with a simple example:

Diana runs an apparel store that employs ten people, including herself.
She assigned two people to work on social media promotions of her
store, two people for physical advertisements in the local area, two
software developers to design and develop her e-commerce website,
and two representatives to attend customers at the store. Diana
herself took the responsibility of supervising all the tasks and
coordinating with the teams.

As the business flourished, she decided to open more branches. Diana

listed down her business expansion goals, finalized the budget, and
formulated strategies. She also hired the best people and put them to
work to achieve objectives.

Diana noticed that her products receive more attention online. So, she
decided to focus more on online promotions and her e-commerce
website. Therefore, she collaborated with the best logistics partners to
ensure her products get delivered to customers on time.

The planning and assessment of different inputs and factors helped

Diana make informed decisions, thereby assisting her in developing

effective strategies.

Importance of Strategic Management

Besides preparing organizations for market competition, strategic
management helps them identify opportunities that arise from time to
time. In addition, businesses get a clue of threats that might hurt them
in the long run. Through step-by-step formulation and
implementation of strategies, companies can overcome hurdles
coming their way and grow efficiently.

Let us have a look at some more points that make strategic planning a
crucial aspect of any business:

 The past strategies act as a reference for future decisions that

the organization makes.
  It results in improved organizational performance.
 The formulation of plans considers the current market trends
and gives organizations a competitive advantage in the
changing market.
 The step-wise strategic processes make goals achievable.
 It helps identify and select efficient individuals and recognize
their efforts, thereby allowing them to grow with the
organizational growth.
 The synchronization of processes, workforce and strategies
make sure strategies align with organizational goals.

What are the steps in the strategic management process or SMP?

 The five steps followed in the strategic management process are

as follows:

 Goal-setting or identification of the business vision and direction

 Resource analysis to select workforce and assign suitable tasks

 Formulating an action plan and strategies

 Executing plans and strategies

 Evaluating efficiency and effectiveness of strategies

 Strategic management is the systematic planning, management,

and use of available resources to ensure a business specifies and
achieves its goals. It also comprises strategy evaluation, a revie
 of internal processes and external factors, resource allocation,
and competition analysis.
 The company culture, structure, operations, and skills of human
resources influence its strategy development process.
 The strategic steps in the process include identifying direction,
analyzing resources, formulating and implementing strategies,
evaluating their effectiveness, etc.
 It prepares businesses for a competitive market and assists them
in identifying potential opportunities and risks.