Strategic Management Theory

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In the Class: “ Management and Organization Theory”, we have been studying the Management functions by understanding what is the planning function and how does the planning function actually work. We have been also reviewing all about Strategic Management, the planning process and the planning cycle. How does the manager formulate, process, and implement his/her organizational goals and objectives, etc.

We also learned that everything starts with a planning stage. The company’s/organization’s vision or mission statement is identified/obtained, studied, and understood. The tone is set for all management and organization processes. Next comes the formulation of the goals and objectives (which are actionable initiatives), and then
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Fast-paced innovation, emerging technologies and customer expectations force organizations to think and make decisions strategically to remain successful. The strategic management process helps company leaders assess their company's present situation, chalk out strategies, deploy them and analyze the effectiveness of the implemented strategies. The strategic management process involves analyzing cross-functional business decisions prior to implementing them. Strategic management typically involves: Analyzing internal and external strengths and weaknesses. Formulating action plans. Executing action plans. Evaluating to what degree action plans have been successful and making changes when desired results are not being produced. The importance of Strategic Plan: Strategic management necessitates a commitment to strategic planning, which represents an organization's ability to set both short- and long-term goals, then determining the decisions and actions that need to be taken to reach those goals. The strategic management process is a management technique used to plan for the future: Organizations create a vision by developing long-term strategies. This helps identify necessary processes and resource allocation to achieve those goals. It also helps companies strengthen and support their core competencies. By determining a strategy, organizations can make logical decisions and develop new goals quickly to keep pace with the changing business environment. Strategic management can also help an organization gain competitive advantage and improve market share. SWOT analysis is a crucial element of strategic management by helping companies identify their strengths, weaknesses, opportunities and threats. The SWOT analysis helps detect and analyze internal and external environments and other factors that may impact