Strategic Business Management - created from Mind Map

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What is Strategic Management?

Importance of Strategy in Business Organizations

Strategic Management Process

Environmental scanning process, strategy formulation, strategy implementation and monitoring, evaluation and review of the implementation process to ensure effective and efficient accomplishment of organizational long term objectives.

Management needs to proactively craft how the organization’s business will be conducted. They further assert that a clear and well thought out strategy is management’s prescription for doing business, its road map to competitive advantage, its game plan for pleasing customers and improving financial performance.

A strategy-focused enterprise is more likely to be a strong bottom line performer that a company whose management views strategy as secondary and puts its priorities elsewhere. Effective strategy formulation and execution have a significantly positive impact on revenue growth, earnings, and return on investment.

The Strategy-Making, Strategy-Executing Process

PHASE 1 : Developing a strategic vision

PHASE 2 : Setting objectives

PHASE 3 : Crafting a strategy to achieve the objectives and vision

PHASE 4 : Implementing and executing the strategy

PHASE 5 : Monitoring developments, evaluating performance, and making corrective adjustments

Developing a strategic vision of where the company needs to head and what its future product/market/customer technology focus should be.

Setting objectives and using them as yardsticks for measuring company’s performance and progress.

Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted.

Implementing and executing the chosen strategy efficiently and effectively.

Evaluating performance and initiating corrective adjustments in the company’s long-term direction, objectives, strategy or execution in light of actual experience, changing conditions, new ideas and new opportunities