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In life, everything has a process. Whether it’s buying a house, studying abroad, or something as simple as setting up a home office. Take the example of a home office.
If your goal is to create an ideal work environment, you need to follow four easy steps:
1. Assess what you need—desk, office chair, laptop, and headphones
2. Formulate a plan of action—work out a budget, decide where to buy each item, and consider technical requirements such as an internet connection
3. Visit the store or browse online to make your purchase and set up your home office
4. Finally, evaluate whether you were successful in creating a conducive work environment and, if necessary, make improvements
Just as you set up a home office in a systematic manner, every organization chalks out its business strategy to maximize its competitive advantage. It also plans to make sure it is geared for the future in a rapidly changing business environment.
A strategic management process is an aspect of management that helps organizations prepare for the future and survive the competition.
Here’s an in-depth analysis of strategic management and its process.
What Is The Strategic Management Process?
Strategic management depends on teamwork. To understand strategic management and its process, let’s analyze the importance of teamwork. Harappa Education’s Managing
Essentially, an organization’s top leadership oversees the strategic management planning process. But everyone in the organization is responsible for brainstorming ideas and challenges.
Teams have to work together to assess ways in which they can leverage their strengths and weaknesses within a changing business environment.
This is where teamwork comes in. If everyone is clear about their roles and responsibilities, they can work independently toward a larger team goal. The strategic management process is interlinked with teamwork as you have to calibrate your organization’s strengths for sustained competitive advantage.
Strategic Management And Its Process
The strategic management planning process has five steps. Let’s discuss each of them in detail.
1. Goal-Setting
Short-term and long-term goals form the basis of the strategic management process. For instance, you decide to expand your business to another country. Goal-setting will revolve around pinpointing relevant geographical areas, analyzing government policies, and identifying target customers. Each employee has to be clear on their role in the strategic management process for effective implementation.
2. Analysis
Data collection and strategic planning determine the second stage of the strategic management process. For instance, if you want to tap into consumer goods, gathering primary or secondary data to assess customer preferences and trends helps in strategizing. You can also identify potential problem areas in current strategies.
3. Strategy Formulation
The third step in the strategic management process is the most important. This is where you form an action plan. It’s time to use the data collected in the last step to formulating a strategy. For instance, once you have identified which products are trending in the last step, you can plan a strategy around manufacturing, advertising, and delivery.
4. Strategy Implementation
The purpose of formulating a strategy is to implement it. The penultimate step in the strategic management process requires you to put your plan into action. As each member understands their role, they can work together or independently to execute the plan.
5. Strategy Evaluation
The strategic management planning process is continuous. Once you’ve implemented your action plan, you have to monitor its progress. Evaluate the plan and how well it’s performing to see if you need to make changes. Market competition and internal or external changes can affect your organizational goals overnight. An intuitive and sound evaluation strategy will help your organization withstand competition.
The purpose of strategic management and its process is to endure uncertainties and accomplish goals despite challenges. When you work in a team, you can overcome any hurdle with strong teamwork.
Harappa’s Managing Teamwork course will help you equip yourself with the right tools to become an irreplaceable part of your team. Not only will you be able to navigate the complexities of team management but also learn to harness your abilities, resolve conflicts, and enhance your collaborative skills.
Explore topics such as Strategic Management, Mintzberg’s Managerial Roles & MBWA from our Harappa Diaries section and manage teams effectively.
