Strategic management includes goal-setting, planning and evaluation steps. After company leaders establish objectives for the organization, the four strategic management elements used to achieve it include environmental scanning, strategy formulation, strategy implementation, and evaluation and control. These elements helps develop effective business tactics and evaluate performance relative to goals.
ENVIRONMENT ANALYSIS
Environmental analysis involves comparing the company's situation to opportunities and threats in the external environment. Factors such as the economy, regulations, competition, societal changes, customer preference changes, technological advances and the environmental all could impact the environmental scan. A strengths, weaknesses, opportunities and threats analysis is a standard tool used in this stage. Conducting a SWOT assessment gives leaders a good picture of current internal strengths and weaknesses relative to external business opportunities and potential threats.
STRATEGY FORMULATION
In formulating a strategy, leaders want to leverage core strengths and protect against threats to areas of vulnerability. If a business has advanced technology or services, an improving economy presents an opportunity to effectively communicate the importance of value to a discerning target market. In contrast, if economic conditions soften, company leaders must decide whether to continue to promote in the same way or offer discounts to budget-conscious buyers. Retraining service employees to better connect with value-oriented consumers is another approach to building strong, loyal customer relationships.
STRATEGY IMPLEMENTATION
The implementation element of strategic management involves taking action. Company leaders communicate the strategy to internal leaders who then pass on roles and responsibilities to their team members. Each department and employee may have a modified role in implementing a new strategy, which may require leveraging outside resources. A customer service manager may hire an external service training organization, for example, to implement a strategy to improve service performance in order to strengthen customer relationships.
EVALUATION AND CONTROL
Successful leaders don't just expect, they inspect. This point contributes to the purpose of the fourth element -- evaluation and control. As departments and workers carry out their responsibilities toward goals, supervisors assess performance. A key component of evaluation is quantified goals. The service department could have a 95 percent customer satisfaction objective, for instance. Over time, managers evaluate their workers and attempt to correct deficiencies.
26/9/2017 CREATED BY : FATIHAH
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