Strategic Management

The strategic management process can best be described by breaking it down into four parts. The strategic management process involves managers making efficient decisions and properly utilizing resources for the overall enhancement of the company. In order to achieve this however, the managers must affirm a mission and define the objectives they look to complete. Management looks to senior leadership and major stakeholders to assist with the affirmation of the mission. The mission is something that guides the company, laying out its overall goal and serving as a reference for decision-making. However since a goal can’t be accomplished, the company also needs to set long (over 3.5 years) and short (under 1 year) term objectives. The long-term objectives are usually derived from an off-site source, such as shareholders and should be specific, measurable, attainable, relevant and timely. These objectives help the company to check its progress against the mission and ensure they are on a path to success. After having done this, the next step is to craft the company’s market strategy. The market strategy aims to create an effective strategy for every aspect of the business. In order to craft the market strategy the firm needs to perform both an internal and external analysis. External analysis looks at competitors, market trends and growth opportunities while internal analysis focuses on the current resources, capabilities and core competencies of the firm. After this strategy is completed the firm needs to develop plans as to how they are going to implement this strategy. The firm needs to utilize its resources and align them efficiently so that the strategy remains in place. Throughout the process the firm is monitoring and implementing controls on each step. The overall goal of the firm is to gain a competitive advantage and through this strategic management process, they can obtain it.