STRATEGIC MANAGEMENT PROCESS Strategic Management of a company is the means to achieve its ends, i.e. the process by which the company maximizes its profits by exploiting minimum resources possible. This involves a number of strategies that a manager comes up to acknowledge the competitors, to recognize the company’s own strengths and weaknesses, and to meet all the goals set up by the company. Basically strategic management is needed in a company to motivate the employees, and to strategize in such a way so to get maximum profits (Dess, et. al., 2009).
Generally, while strategizing for a company four components are to be kept in mind i. e. environmental scanning, strategy formulation, implementation and evaluation. The process starts off by carving out the mission statement which depends on three factors, i.e. needs of the company, the customer demand and ways to achieve the goals. Then, external opportunities and threats are analyzed, after which internal strengths and weaknesses of the organization are analyzed. Thus after thoroughly analyzing the internal and external environment a SWOT analysis is conducted, based on which a strategy is formulated (Dess, et.
al. , 2009). Thus now, the chosen strategy in brought into action, and the management makes sure that it is being implemented. This involves different aspects including budgeting, financing, report systems and so on. Thus as the final step, the strategies are evaluated over time by different methods, including re-analyzing the environment, analyzing output reports, measuring employee performance and so on (Dess, et. al., 2009). Now for in-depth understanding of the process, Let us analyze the strategic management process conducted in “Mobilink”. Based on the three components mentioned above, the mission statement is carved out.
This mission is than converted into performance objectives, like top-down approach, measurable statements, specified time and so on. Than, the external threats are analyzed which includes industry, social, political, regulatory, macro-economic and technological threats. Thus based on which opportunities are found like unfulfilled customer need and loosening of regulations. Also threats are acknowledged like change in customer’s taste and increased trade barriers. Now, the internal threats are analyzed, for instance financial analysis and marketing audit. Based on this, the weaknesses are ascertained like weak brand name.
Moreover strengths are also highlighted like the one’s being good reputation among customers, cost advantages and favorable access to distribution networks (Ghemawat, 2009). Based on the SWOT analysis, different corporate level, business level, functional and operating level strategies are formulated. Moreover, the factors effecting strategy are also acknowledged, i.e. society forces, regulatory forces, personal managerial ambitions and company’s culture. Moreover, the process doesn’t stop here. Now they turn towards the most important component of implementing the formulated strategy. I.e. they structure the organization accordingly, along with budgeting, marketing, creating reward structure, creating work environment and information systems.
Lastly, the implemented strategies are evaluated by reviewing the process and adjust the missions, objectives, goals or processes according to the outcomes observed. Thus “Mobilink” which is a very prominent mobile phone company based in Pakistan follows the traditional processes proposed by strategic management theories, and the outcomes are eminent for all of us. References: Dess, G., Lumpkin, G.T. and Eisner, A. (2009) Strategic Management: Creating Competitive Advantage. New York: McGraw-Hill/Irwin. Dess, G., Lumpkin, G.T. and Eisner, A. (2009) Strategic Management: Text and Cases.
New York: McGraw-Hill/Irwin. Ghemawat, P. E. (2009) Strategy and the business landscape. New Jersey: Prentice Hall.