Key Components Of The Strategic Management Process

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Why Is Strategy Important To Business? Introduction In the world of business, the bottom line is to produce a profit however, this is not the only objective that a business needs to focus upon. Businesses must develop, create, and implement their ideas into a product or service that has value to a consumer. The means by which this is accomplished is developed and sustained through a method established as strategic management. Strategic management is defined as the set decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. It comprises nine critical tasks (Pearce & Robinson, 2013, p3). The Main Components of the Strategic Management Process “A strategy is a company’s game plan” (Pearce & Robinson, 2013). The strategic management process (the game plan), deals with everything that affects the growth and profitability of a firm (Pearce & Robbins, 2013, p3). Strategic planning deals with issues that are multifunctional and that address the company’s external environment. “All businesses exist in an open system” (Pearce & Robbins, 2013), and have many issues that are beyond their control. As a result, businesses are motivated to project their functions beyond their own operations. To accomplish this daunting task businesses utilize three main levels of strategy: Corporate level, Business level, and the Functional level. At the corporate level, the principal members of the business are the
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