In this process, the strategists determine objectives and make strategic decisions. These 5 elements then became recognized and referenced by others in the growing discourse about management. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
What is strategic management process steps, stages and phases. These five elements deal with planning, organizing, commanding leading, coordinating, and controlling. May 02, 2012 strategic management is defined as a process of specifying the objectives of the organization, developing policies and planning to achieve the objectives, and then allocating resources so that plans can be implemented. Situation analysis is the initial phase in the vital administration process. The following statements provide a definition of the concept of strategic management and the scope of business strategy.
Introduction the main activity of a manager consists in making decisions. What are the elements of strategic management process answers. The four key elements are situation analysis, strategy formulation, strategy implementation, and strategy evaluation. Strategic management process meaning, its steps and. The strategic management process means defining the organizations strategy. In conclusion, the framework provides for scholars and practitioners a logical structure to elements of strategic technology management.
Marketing requires an understanding of consumer wants and needs. Strategic management process has four key elements. Planning nature, elements, process, approach, importance. The crafting image captures the process by which effective strategies come to be. Strategic management process strategic management process dr i. The top management defines the mission and lays down strategies and plan of action required to achieve stated goals. It is well known that the decision in management is the process of choosing between two or more alternatives to accomplish ones. What are the elements of the strategic management process. The basic influencing factor of these components is organizational goal because such activities are to be performed.
The next steps are to complete the planning work, publish, deploy. This understanding is derived through an assessment of these needs. A strategic plan is a management tool that serves the purpose of helping an organization do a better job, and it improves organizations because a plan focuses the energy, resources, and time of everyone in the organization in the same direction. A policy is a definition of common purposes or organization components. The management of the strategy of an organisation can also be thought of as a process of crafting. The influences on, and elements of, strategic management discussed above are summarised in the figure above. In the practical part, an exhaustive analysis on the. This dynamic process helps organizations find new and more efficient ways to do business. Evaluation and control management scans both the external environment for opportunities and threats and the internal environmental for strengths and weakness. What are the key elements of the strategic management process. These elements are steps that are performed, in order, when developing a new strategic management plan. Strategic planning includes the first four strategic management tasks. The process of strategic management lists what steps the managers should take to create a complete strategy and how to implement that strategy successfully in the company. Eight elements of strategic planning from success to.
Strategy should not suppress the initiatives, creativity and professionalism of management and company employees. What is strategic management process steps, stages and. The strategic management process is made up of four elements. Strategic management process consists of four components environmental. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. A roadmap to launch and grow your organization process as important as product perhaps more important aligns stakeholders around strategic priorities communicates your goals, strategies and programs engages, motivates, and retains external and internal audiences e. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
These basic elements are the key steps for achieving organizational goals. The figure is intended not as a prescription of what strategic management should be, but as a framework which readers can use to think through strategic problems. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that. Strategic analysis this involves a thorough examination of the organisation, its culture, its. What are the elements of strategic management process. Human resource management is a process which involves around four basic functions acquisition, development, motivation and maintenance of human resources. From defining business mission to performance evaluation strategic planning is a part of the firms strategic management process. Therefore, given to these questions, the importance of strategic management should be further investigated. The strategicmanagement process can be described as an objective, logical, systematic approach for making major decision in an organization. Major elements and issues in performance management system. Elements of strategic planning and management in municipal. There are three key elements to strategic management and each have a number of sub elements. Strategic management process may be simply defined as the process through which a company formulates its business strategy elements in strategic management process. Strategic sourcing is organized since some type of methodology or process is needed.
The process of strategic management involves considering how resources such as money, personnel and time impact the environment in which the organization operates. But the work doesnt stop just because you have created a finely tuned strategic management plan. Examination of the external and internal environments of the nonprofit. Situation analysis includes checking and assessing the hierarchical setting. The major elements of the strategic management process business. Elements and characteristics of strategic management accounting are those features that makes strategic management accounting uniquely different from other forms of accounting managerial accounting and financial accounting. Eight elements of strategic planning from success to succession. Using a handbook for strategic planning, the senior leadership team can complete most of the. The strategic management process is a way for businesses to build strategies that help the company respond quickly to new challenges. Strategy analysis is usually concerned with understanding the organizations strategic position. Key elements of strategic management mba knowledge base.
Whether this exercise is performed by the ownermanager, the successor, the board of directors, or a management committee, the exercise comprises eight elements. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Establishing the hierarchy of strategic intent creating and communicating a vision. Simply put, a strategic plan is the formal ized road map that describes how your organization executes the chosen strategy. Strategic management is considered to be the highest level of managerial activity that the top management of the organization. Management develops strategies to guide how an organization conducts its. Apr 28, 2020 the strategic management process is a way for businesses to build strategies that help the company respond quickly to new challenges.
Here strategic management is seen not so much as a formal process, but rather as a process by which strategies develop in organisations on the basis of managers experience. There are four key elements to strategic management. Strategic management can be defined as a decisionmaking process that leads to the development. Elements of strategic planning and management in municipal government 47 unless they drive it through their budgeting, measurement, and performance management processes. Components or elements of human resources management. Before proceeding with the discussion of the elements of strategic management accounting, it will be helpful if a working knowledge of what a strategic. Integrating these four components of strategy formulation is a delicate and. What is strategic management process 6 step process. Pdf this chapter on the strategic management and strategic planning process provide an. Thus, this research investigates the current state of the practice of strategic planning and management in u. Strategic management is a continuous process that appraises the business and industries in which the. Hence you should act in accordance with the following principles. Elements of an organization planning process considerations.
The four key elements are situation analysis, strategy formulation, strategy implementation, and strategy evaluation by addressing each. The social web and the political process of strategy making 33 2 thinking and acting strategically 43 case study scenariothe ikea way 44 the distinction between strategic thinking, strategic management and strategic planning 45 strategy in actionquick strategic thinking in unfavourable circumstances45. Strategic management process means defining the organizations strategy. Existing businesses that have already developed a strategic management plan will revisit. The implementation of a strategic management plan requires strategic thinking, sound decision making based on all four elements and topdown support from executive leadership who communicate their vision to staff who often are tasked with the operations that carry out the strategic management plan. There are four key elements of the strategic management process. Elements of a strategic plan a plan spells out where an organization is going over the next year or more and how it is going to get there. Wheelen and hunger 2002 say that strategic management is a set of.
Elements of strategic management process and performance. Gathering of input from staff, committees, and constituents. Four basic elements of strategic management bizfluent. In the models, all five components of strategic planning are positively correlated with the three dimensions of performance management systems. Pdf elements of strategic management as drivers impacting on. Second in a twopart series elements of a strategic plan. The elements of successful mark eting marketing resear ch within the definition of marketing is the discussion of a process of planning and executing to meet consumer needs. Strategic management is the process of decision making and planning which leads to the development of an effective strategy to help achieve organizational objectives. A strategic plan is a management tool that serves the purpose. Defining strategic management, planning outline l why strategic management. Pdf on nov 30, 2015, iruka anugwo and others published. Man476412class discussion week 1 what are the elements. It might comprise from 7 to nearly 30 steps 4 and tends to be more formal in wellestablished organizations. Before proceeding with the discussion of the elements of strategic management accounting, it will be helpful if a working knowledge of what a strategic management.
Performance management, a systemsoriented approach, feedback. Elements of strategic management the strategic management process does not get involved in the day to day running of the organizations operations, but instead creates the strategies for the accomplishment of long term objectives. Strategic management process meaning, its steps and components. This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. The success of this approach depends upon the qualification, experience and capabilities of top management. In the theoretical part, it described the definition, process, benefit and. It attempts to organize qualitative and quantitative information in a way that allows effective decisions to. The major elements of the strategic management process. Major elements and issues in performance management. Chapter 4 choosing brand elements to build brand equity 111. A thorough strategic planning exercise outlines the companys main direction while at the same time defining its needs in terms of leadership quality and in terms of financing. Figures taken from london business schools masters in management 2010.