Strategic Management Process

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Definition: strategic management is the set of managerial decisions and actions that determines the long-run performance of an organization. It involves all the four functions of management. Strategic plans provide a common vision for the whole organization. The strategic management process is a series of steps that formulates the strategic planning, implementation and evaluation.
Step 1: The first step is identifying organization’s current mission, objectives and strategies. Every organization needs a mission. Defining the organization’s mission forces managers to carefully identify the scope of its products and services. It is also important for managers to identify the goals currently in place and the strategies currently being
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An understanding of the organization's culture is a crucial part of Step 3 that's often overlooked. Managers should be aware that strong and weak cultures have different effects on strategy and that the content of a culture has a major effect on strategies pursued. The combined external and internal analyses are called the SWOT analysis because it's an analysis of the organization's strengths, weaknesses, opportunities, and threats. Based on the SWOT analysis, managers can identify a strategic niche that the organization might exploit.
Step4: the forth step is formulating Strategies. Once the SWOT analysis is complete, managers need to develop and evaluate strategic alternatives, then select strategies that capitalize on the organization's strengths and exploit environmental opportunities or that correct the organization's weaknesses and buffer against threats. Strategies need to be established for the corporate, business, and functional levels of the organization. This step is complete when managers have developed a set of strategies that give the organization a relative advantage over its rivals.
Step5: the fifth step is implementing strategies. To be successful, strategies must be implemented carefully. People with the right skills may be needed to make some of the strategies to work. Re-organizing the existing
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