There are many components of a strategic management process, but there are four main elements. According to Wheelen and Hunger, “strategic management consists of four basic elements: environment scanning, strategy formulation, strategy implementation, evaluation and control” (2010). Environmental scanning is a broad look at things that pertain to the company. Many companies will do a SWOT analysis by analyzing the company’s strengths and the opportunities that the company has and then look at the company’s weaknesses and threats. This information is then distributed to the appropriate individuals for strategy formulation.
According to Wheelen and Hunger, “strategy formulation is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses (SWOT). It includes defining the corporate mission, specifying achievable objectives, developing strategies, and setting policy guidelines” (2010). Once strategies are formulated, the strategies are implemented. Strategy implementation is putting the strategies into effect by establishing the programs and procedures required to accomplish the tasks. The last element of strategic management is evaluation and control.
When a strategy has been implemented, the strategy needs to be evaluated in order to understand if the strategy is accomplishing what it was put in place to do. Sometimes the strategy needs to be adjusted based on the outcome findings and continued monitoring until the strategy performs satisfactorily. All of the components of a strategic management process work together to achieve a desired outcome. An organization needs to have a strategic management process in order to stay competitive and be able to have plans in place to achieve the overall goals of the company.
A strategic management process allows companies to strive for better outcomes. Strategic management process example I work for a major pharmaceutical company in the global quality department. This company uses a strategic management process in all departments. Specifically in the global quality department, strategic plans are constantly utilized when quality issues are brought to the attention of the company. The issues are usually brought to the company’s attention when sales representatives call the department and report any type of an issue with any of the medical devices in the field.
These issues are investigated and evaluated to find out if a process needs to change and if there is a health risk involved. If management deems the issue is important to have resolved, a strategy is formulated to try to resolve the issue. Once reviewed by upper management, the strategy is implemented. During and after implementation, any information that relates to the issue at hand is documented and studies are done in order to see if the strategy is effective in resolving, or lessening, the issue.
The newly implemented strategy is kept in place unless it is found to be ineffective. If the strategy is found not effective at resolving the issue, a new strategy is developed and the process of finding a solution to the issue starts all over again. The strategic management process is very important in this situation because if issues are not dealt with in a timely manner, if could create further issues with the Food and Drug Administration. All companies can benefit from a strategic management process.