5 Step Strategic Management

The five-step strategic management model the is presented in the text consist of both external and internal analyst, strategic formulation, strategy execution, and strategic control (Parnell, 2014). Each strategic management step fall in a logical, sequential order when used. One should understand both essential organization as well as the environment to form an effective strategy. The first two steps, external and internal analyst, are interchangeable during the assessment stage. During the external analyst phase, one analyze the various opportunities or company threats that are included in such the industry. The external and internal analyst are consist of both a PEST Analysis and a SWOT Analysis (Strategic Management Model, n.d). The internal analysis is very important to a company because it studies the such aspects of the company as the company’s image, the company’s structure, and the natural resources that are available. The Strategy Formulation builds a competitive advantage in the industry. The firm’s strengths and weaknesses can be evaluated alongside the environment's potential opportunities and threats (Parnell, 2014). The Strategy Execution stage implies the strategic approach to the employees of the firm. Lastly, the Strategic Control provides a measurement of the success and also provides adjustments to help the outcome. For the strategy to be effective, the strategy model should be performed in sequential order. The strategic management process of the parcel sevice is similar than that of any other industry. FedEx managers are assessing the customer’s approval rating, working to eliminate weakness, implementing strategies for the amount of freight, and forming strategic plans for major event or holidays. These events happen at the same time on a daily bases. The organization’s business model provides a great foundation for an effective strategy (Parnell, 2014). Fred Smith believed in a strategy to make his ideas come to live. Smith’s