MAN4720 Essay: Strategic Management Plan Phases and Importance

This essay explores the three critical phases of a strategic management plan: strategy formulation, strategy implementation, and strategy evaluation. The essay begins by defining strategic management as a process of planning, analyzing, implementing, and evaluating a firm's objectives. Strategy formulation involves establishing the organization's mission, objectives, and selecting from alternative strategies, often based on internal and external environmental analysis. Strategy implementation focuses on executing new strategies, setting yearly objectives, developing organizational structure, and allocating resources. Strategy evaluation assesses whether the implemented strategies are effective, considering internal and external factors. The essay emphasizes the significance of the strategy formulation phase as it directly connects to the organization's vision and mission, preceding the implementation and evaluation stages, and allowing a business to be proactive in the competitive environment. The essay uses examples such as increasing revenue through online expansion and allocating budget to the marketing department to illustrate these phases. The references cited in the essay provide further context to the topic. This document provides a comprehensive overview of the strategic management plan, focusing on the importance of each phase and its role in achieving business goals.

Running Head: MANAGEMENT 0
Business Management and Strategic Management

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3 phases of a strategic management plan
Strategic management is a business process of constant planning, analysing,
implementing and evaluating all that is important for a firm to fulfil its objectives and goals
in relation with the future direction (Karmanov et al, 2016). It is also comprised of the actions
and decisions that determine the long performance of the firm. From wider perspectives, the
strategic management process includes three stages all interrelated to one another as –
strategy formulation, strategy implementation and strategy evaluation. Each stage relies upon
set of activities performed by the individual working in the business organisation set towards
achievement of strategic goals under the provision of its external and internal business
environment.
Strategy Formulation – This is the first phase of strategic management process that
includes establishment of organisation mission, objectives and selection from alternative
strategies. It is also known with the other name as strategic planning which enables strategist
to choose which alternative strategies will benefit the company most with considering the fact
that no firm has unlimited resources (Morden, 2016). Taking an example, the executives in a
large organisation can formulate strategy as 30% increase in revenue this year through online
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
STRATEGY EVALUATION

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expanding the company’s products. The strategy formulation is based on comprehensive
analysis of internal and external business environment to setup long term business objectives.
Strategy Implementation – In the strategic management process, the action stage
relates to the strategy implementation that involves the decisions to executive new strategies
or makes changes to the existing strategy. It involves the decisions concern with setting up
yearly objectives, development of effective organisational structure, creating policies,
inspiring staffs and personnel and allocates resources to various divisions of an organisation
(Morden, 2016). Taking an example, allocating 25% of the total budget to marketing
department for aggressive marketing and promotion in this year. At this stage, the total
workforce will execute the strategic plan under lead of top and senior management.
Strategy Evaluation – In relation to final phase of strategic management process,
management assesses and observe that if the definite strategies are working well or not and
whether they are subjected to future alterations due to constant changes in the internal and
external factors surrounded in the business environment. Hence, it includes significant steps
such as look over internal and external factors that are the bases for existing strategies,
measuring performance and practicing corrective actions (Morden, 2016). Considering an
example, it can be evaluated whether the marketing department of the firm has sufficient
human resources available or not so as to practice aggressive branding and promotion for the
specific time period.
In relation to the above three phases of strategic management, strategic formulation
and planning are considered to be one of the most significant stages as it is directly connected
to the organisation vision and mission and precedes both strategy implementation and
evaluation. In short, it concerns with placing the forces before any sort of actions in the next

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two stages. Ultimately, strategic management allows a business firm to be more proactive
than reactive in the competitive business environment.

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References
Karmanov, M. V., Korotkov, A. V., Gryzunova, N. V., Kiseleva, I. A., & Kuznetsov, V. I.
(2016). The strategic analysis of industry-specific competition and environmental
risks–an integrated approach. International Journal of Environmental and Science
Education, 11(18), 12657-12667.
Morden, T. (2016). Principles of strategic management. London: Routledge.