Lesson 1, Topic 1
In Progress

Strategic management process


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Strategic management process is way through which management able to make and implement
strategies, which are helpful for business organizations to achieve their objectives and goals. We may also say that strategic management process is a set of decisions along with actions done by managers to conclude long time performance of the organization. All the basic functions of an organization can be demonstrated through strategic management, such as planning & organizing, leading and controlling.

1.  Strategic management is involved in various decisions made by managers.

2.  The findings state that organizations having proper strategic management systems have
      greater financial results than those having no any systems.

3.  It is applied in all types of organizations, whether they are profitable organizations or non-
      profit organizations.

Strategic Management Process

Strategic management process consist of eight steps including strategic planning, evaluation and
implementation.

01- First step is the identification of mission, goals and strategies.

•    All the organizations have missions that define the significance of those organizations with
      practical.

•    It is important to know about the goals and strategies of the organization.

02- Second step is the analysis of external environment affecting the organization. It is under the options of strategies by management.

•    Successful strategies support the environmental effects in well manner.

•    This step is completed only when the managers have environmental information about
      trends, norms and values going out there.

03- Third one is the identification of threats and opportunities after analysis of external environmental conditions.

•    Positive environmental aspects are the opportunities. While,

•    Negative factors of the environment are threats for organizations.

04- Fourth step is analysis of organizational reserves in which management look through the available assets of the organization such as skilled manpower, work activities and etc.

•    Management keeps closed sights over core competencies of the organization that are
      valuable skills, resources and capabilities to provide competitive advantages.

•    In this step, managers are forced to realize the parameters affecting goals in any way.

05- Fifth  step  is  to  identify  the  strength  and  weakness  through  assessment  of  internal organizational resources.

•    The activities that control the solo resources of the organization in well manner are the
      strength of the organization.

•    Weaknesses are inverse activities to the strengths.

•    The personality of an organization must be kept in mind that is its culture. It is the result
      of understanding and supporting the values of the organization by the employees.

•    It becomes easy for the managers to transfer the distinguishing competencies to the
      employees of the organization.

•    Strategic choices also affect the innovation and performance due to strong cultural
      tolerance of an organization.

•    SWOT Analysis and TOWS are very compulsory for an organization to improve the
     performance in achieving goals and targets by avoiding threats and hindrances. The
     mission of an organization should be evaluated by the managers in the sense of SWOT
     Analysis.

06- Sixth one is the formulation of strategies for commercial, business and practical levels of
organization. It provides Competitive advantage to the organization.

07- Second last step is the implementation of strategies in practical shape.

08- Last step includes the evaluation of results in strategic management process. Managers should evaluate the results in order to compare the achievements and corrections, if needed.

ACTIVITY 2.1

1.   Explain the types of HR strategies.

2.   What is the role of HRM in creating competitive advantage?

3.   What are the steps of strategic management process?