Strategic Management and Business Policy

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STRATEGIC MANAGEMENT AND BUSINESS POLICYSTRATEGIC MANAGEMENT AND BUSINESS POLICY11 Running Head: STRATEGIC MANAGEMENT AND BUSINESS POLICY Describe the basic elements of strategic management. Environmental scanning refers to the acquisition and utilization of information regarding trends, and relationships in the external environment of an organization. Such information entails the knowledge that will help the management of the organization in planning the future of the organization. There are four modes of scanning that can be differentiated depending on the beliefs the organization has on environmental analyzability and also on the extent to which the organization intrudes into the environment with the aim of understanding it (Wheelen and Hunger, 2002). These models include; conditioned viewing, undirected viewing, searching and enacting. Each mode of scanning is analyzed by examining its nature and characteristic information seeking, information needs, as well as information use behaviors. Additionally, organizational learning processes is analyzed by considering the knowledge creating, sense making and decision making processes at work in each of the modes (Wheelen and Hunger, 2002). Environmental scanning assists the management of an organization to identify the threats as well as opportunities that exist in the environment. Strategy formulation is the process of choosing the course of action that is most appropriate for the achievement of the goals and objectives
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