Formulation of Strategic Management Process
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Added on 2021-01-02
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STRATEGIC MANAGEMENT INTRODUCTION 4 SECTION 14 1.1 Concept of Strategy4 1.2 Elements of Strategic management Process 5 1.3 Analyzing the role of values, vision and mission statements in the Strategic Management7 1.4. Identifying and evaluating different approaches to formulating strategy 8 1.5 Influence of External Environment on Strategy Formulation 9 SECTION 211 2.1 Differentiate between Organizations’ general Competitive and Internal Environments 11 2.2 Tools for the analysis of the General, Competitive and Internal Environment Factors 12 3.1 Compare and contrast different approaches to the formulation
Formulation of Strategic Management Process
Added on 2021-01-02
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STRATEGIC MANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................4SECTION 1......................................................................................................................................41.1 Concept of Strategy..........................................................................................................41.2 Elements of Strategic management Process.....................................................................51.3 Analyzing the role of values, vision and mission statements in the Strategic Management.71.4 Identifying and evaluating different approaches to formulating strategy........................81.5 Influence of External Environment on Strategy Formulation..........................................9SECTION 2....................................................................................................................................112.1 Differentiate between Organizations’ general Competitive and Internal Environments112.2 Tools for the analysis of the General, Competitive and Internal Environment Factors.123.1 Compare and contrast different approaches to the formulation of Organizational Strategy..............................................................................................................................................133.2 Assessing the role of organizational strategy in achieving competitive advantage.......153.3 Applying appropriate tools to analyze actual organizational environments..................16SECTION 3....................................................................................................................................174.1 Critical analysis of how Organizational processes supports in implementation ofOrganizational Strategy........................................................................................................174.2 Evaluation of different approaches to Strategic Change................................................184.3 Evaluation of Strategic control and Reward system in implementation of OrganizationalStrategy.................................................................................................................................194.4 Critical analysis of role of Administrative managers in Designing and implementingOrganizational Strategy........................................................................................................194.5 Administrative management used in facilitating Organizational Strategy.....................20CONCLUSION..............................................................................................................................20REFERENCES..............................................................................................................................21
Illustration IndexIllustration 1: Elements of Strategic Management Process.............................................................6Illustration 2: Strategic Management...............................................................................................7Illustration 3: External Environmental Factors..............................................................................10
INTRODUCTIONStrategic management plays an important role for any organization to run their businesssmoothly in the target industry. It is a method which is used by company for identification anddescription of strategies which are being carried out in the firm. An organization is said to havean effective competitive advantage if its profitability is higher than the average profitability forall companies in its industry. It can also include decision making process. This process helpsthem to evaluate the business and set their objectives and goals. Major importance of this methodis to adapt various functional areas of the organization completely as well as to ensure thatwhether these functional areas matches with each other well. Another role of strategicmanagement is to keep a continuous look on the goals and objectives of organization. This reportwill talk about Coach Hire Company named as A2B which is a small family business. It willfocus on the concepts like strategic management process and its role of values as well as visionand mission statements. It will identify and evaluating different approaches to formulate strategyin the organization. It will also explain the external factors which have a great impact oncompany. This report will also discuss about different approaches to strategic change and therole of administrative manager in designing and implementing organizational strategy.SECTION 11.1 Concept of StrategyFor any organization, strategy is a long term future planning to accomplish company'sobjectives and goals. An effective strategic planning requires imagination, smart thinking andcapability to visualize the future for firm and its employees. It is a process which is used byorganization to achieve their targets in the future. It is a comprehensive and an integrated planwhose main objective is to accomplish their mission (Strategic Management - Meaning andImportant Concepts, 2018). Some key features of strategy are as follows,It is a mixture of internal and external factors which exist in environment. It is veryimportant because this gives them information related to opportunities and threats.It is always future oriented and gives company the direction to work effectively. Strategy provides overall framework for guiding the organization’s thinking and action.The main purpose of this method is to identify and help the organization to workeffectively and earn a good amount of revenue (Robson, 2015).
Strategy is composed of several key factors in it. For example: long term objectives of thefirm, its competitive advantages, opportunities, etc.Strategic planning is important for an organization as it provides them direction and helpsto identify the measurable goals. It is a type of tool which is very useful for them to guide day-to-day decisions and it also helps to evaluate the whole process and changing approaches whenimplementing any planning in the system. It is very crucial to have a focused strategy as it isimportant for success of their business in industry. It also ensures to set mission and goals for theorganization (Robson, 2015). 1.2 Elements of Strategic management ProcessIt is a type of process which helps the organization to plan their strategies for futurewhich enables them to achieve their goals and work in a better and effective manner. Thisprocess is very useful for company to run their business smoothly and it helps to compete withtheir competitors in industry. There are basically four steps in strategic management processwhich are explained as below:1.Environmental Scanning: This is the initial step of the process and most importantfactors as it helps to identify internal and external factors which can affect the functioningof organization. Internal factors can include organizational structure and its environment,operational potential of the firm, etc. External factors consist of competitors in theindustry, customers, etc. Environmental scanning helps A2B to identify their strengthsand weaknesses (Strategic Management Process - Meaning, Steps and Components,2018).2.Strategy Formulation: This method helps A2B to decide the best strategy for themwhich can help them to accomplish their objectives and fulfill organizational purpose torun business. Strategy formulation has several steps which have to be followed bycompany to plan an effective strategy. These steps are as follows:It helps to set organization's goals and objectives,It evaluates organizational environment of company,Also, this method helps in setting quantitative targets.It evaluates the performance analysis of firm, etc.3.Strategy Implementation: This process helps organization to implement chosen strategyinto action. Strategy implementation method includes designing organization’s structure,
distributing resources, developing decision making process and managing humanresources in firm to make it effective (Hill, 2017). There are several steps whileimplementing any strategy like:This method helps to develop the organization to carry out the strategy successfully in themarket.It manages the availability of sufficient resources to perform strategy-essential activitiesin the organization.Helps to create strategy-encouraging policies for their employees.It provides the best policies and programs for their employees for constant improvementin the organization.Linking reward structure to accomplishment of results.Making use of strategic leadership in the organization to achieve their targets and goals intime.4.Strategy Evaluation: This is last step in the strategic management process. This methodhelps to identify efficiency and effectiveness of planning which is implemented intosystem (Hill, 2017). It evaluates overall performance of the organization and helps to takecorrect actions which are beneficial for A2B. 1.3Analyzing the role of values, vision and mission statements in the Strategic ManagementIn strategic management, it is very important to have a clear vision and mission toaccomplish in the future. It can help them to analyze the internal and external factors influencingIllustration 1: Elements of Strategic Management ProcessSource : (Strategic Management Process, 2018)
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