ELEMENTS OF STRATEGIC MANAGEMENT

  1. Environmental scanning: environmental scanning refers to a process of collecting, scanning and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on continuous basis and strive to improve it.
  2. Strategy formulation: strategy formulation is the process of deciding best course of action for accomplishing organisational purpose. After conduction environment scanning, managers formulate corporate, business and functional strategies.
  3. Strategy implementation: strategy implementation implies making the strategy work as intended or putting the organisation’s chosen strategy into action. Strategy implementation includes designing the organisation’s structure, distributing resources, developing decision making process, and managing human resources.
  4. Strategy evaluation: strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are appraising internal and external factors that are the root of present strategies, measuring performances, and taking remedial/corrective action. Evaluation makes sure that the organisation strategy as well as its implementation meets the organisational objectives.

Flow chart (model)

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