Explanation of the 7 steps of the strategic management process
There are seven steps of a successful strategic management process. These seven steps are the followings:
The strategic management process refers to the strategy of defining strategy of the organization. It is also defined as a process which is considered by the organization to enhance its performance. For this managers need to apply some strategies to ensure that organization performance improvement is achieved with reference to organizational mission and vision as well.
According to Keira, marketing head at Myassignmenthelp. “Strategic management if analysed in details is a continuous process which helps organization in obtaining excellence in business and organization in which the organization is involved.” It also considers competitors of the organization and with reference to that it provides organization goals that they need to meet in terms of its competitors not only in present, but also in future as well. However, it is not only enough to design strategy, it is also required to make reassessment for all of its competitors as well.
Seven steps of a successful strategic management process are the followings:
1. Identification of mission, strategies and goals:
This is the first step of any strategic management process and it is also one of the most important aspects of designing strategic management process.
Each and every organization has some mission. It is important to identify this mission while designing strategic management process. However, only identifying organizational mission is not enough. It is also required to identify organizational business strategies and organizational goals for effectively implementing strategic management process.
2. Analysis of external environment:
In order to design strategic management process and enhance organizational performance, it is required to analyse external environment that is affecting organizational performance and if it is not identified, then it is not possible to ensure that strategic management process is in accordance with organizational objectives and organizational performance goals as well.
3. Identification of threats and opportunities:
After analysing external environment, another important aspect of strategic management process is to identify threats and opportunities. In external environment analysis, if there are some positive environmental aspect, then those are opportunities for the organization and if there are negative factors with reference to external environment aspect, then those are threats for the organization. Identification of these threats and opportunities are important in implementation of strategic management process as well.
4. Analysis of organizational resource:
Next important step of designing strategic management process is Analysis of organizational resource. It provides organization comprehensive idea regarding organizational assets for example human resource, work activities and other important organizational resources as well.
5. Analysis of internal organizational resources:
Another important step of designing strategic management process is Analysis of internal organizational resources. It will provide organization idea regarding its strength and weakness. Therefore, it is important to consider this for strategic management process as well.
6. Formulation of strategy:
It is required to formulate strategy for implementing strategic management process. These strategies need to be defined in terms of organizational commercial, business activities for ensuing competitive advantage as well.
7. Implementation of strategy:
This is one of the most significant aspects of strategic management process. After formulation of strategies, it is required to implement these strategies in organizational context. It is required for ensuing that strategic management process is effective and efficient as well.
Keira is a Senior Manager at an MNC based out of Australia. In addition, she is also associated with My Assignment Help as a subject matter expert. She provides help to students who seek assistance.