Strategic management is broadly concerned with how an organization's leaders create and implement goals. The process of strategic management involves considering how resources such as money, personnel and time impact the environment in which the organization operates. There are four key elements of the strategic management process: environmental scanning, strategy formulation, strategy implementation and strategy evaluation.

    Environmental scanning is the foundational step in the strategic management process. This involves taking a deliberate look at how internal and external factors affect the success of an organization. For example, a company can look at how its human resources data, including employee turnover rates and staff satisfaction, have an impact on the organization's performance. The same organization might also look externally at its competition within the industry to determine at which level it can compete. This might involve creating a SWOT analysis, or Strengths-Weaknesses-Opportunities-Threats analysis. Understanding the SWOT is an important baseline for further strategic planning.

    Once an organization has done its environmental scan and identified its strengths, weaknesses, opportunities and threats, it can then move on to formulating or drafting its strategies. These should be based on improving the key competencies outlined in the SWOT. For instance, an organization might want to capitalize on a new market opportunity, or increase its foothold in a particular technological arena. The important thing to remember is that a strategy should give the organization a sense of direction. This is what is commonly called "strategic direction," which business coach Steve Robbins says on his website is about envisioning what the future looks like for a company and making sure that all its leaders are onboard to take it to the next level.

    Once a strategy plan has been formulated, it is then up to the organization's leadership to put that strategy into action. This is called strategic implementation and it is all about creating specific action plans for how the strategies will be achieved. Suppose a company wants to introduce a new customer relationship management system. The managers would need to set out clear steps toward the implementation of the CRM system. This might eventually turn into dozens of baby steps that each add up to taking the organization in a new direction. Of course, one of the elements of proper strategic management is making sure that all of the resources -- be they human or material -- are available to successfully implement a new strategic direction.

    It might seem that the organization's job is done once it has successfully implemented a strategic plan, but there is actually still work to be done in evaluating the strategy's longevity and effectiveness. Evaluation is an ongoing part of the strategic management process because it allows the company's leaders to quantitatively and qualitatively evaluate the impact the new strategy has had on both day-to-day work flows and on the company's broader strategic direction. In some cases it may even be necessary for an organization to rethink its strategy and start the process all over again.

    What are the major elements of the strategic management basic model?
    After goal setting, strategic management includes four basic elements:
    • Environmental Scanning.
    • Strategy Formulation.
    • Strategy Implementation and.
    • Evaluation and control.
    more
    What is basic planning model?
    Basic model The basic strategic planning model is ideal for establishing your company's vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise. more
    What is a basic financial model?
    Financial modeling is one of the most highly valued, but thinly understood, skills in financial analysis. The objective of financial modeling is to combine accounting, finance, and business metrics to create an abstract representation of a company in Excel, forecasted into the future. more
    What is the basic model of strategic management?
    SWOT Analysis Model A basic model of strategic management, SWOT stands for Strengths, Weaknesses, Opportunities and Threats. This technique is instrumental in determining growth strategies. By gauging available opportunities and addressing weaknesses, organizations can leverage strengths and circumvent threats. more
    What are the major element of planning?
    The entire process of planning consists of many aspects. These basically include missions, objectives, policies, procedures, programmes, budgets and strategies. more
    What are the 4 basic model of strategic management?
    This type of business model in strategic management is a macro-level plan that helps organizations assess future changes based on four factors—Political, Economic, Social and Technological. more
    Which of the following is not a basic element of budget?
    Expert-verified answer Rent/ Mortgage Payment. more
    What is the basic accounting model?
    The accounting equation is a basic principle of accounting and a fundamental element of the balance sheet. The equation is as follows: Assets = Liabilities + Shareholder's Equity. more
    What is the basic element of financial accounting?
    5 Main Elements of Financial Statements: Assets, Liabilities, Equity, Revenues, Expenses. more
    What is basic strategic planning model?
    Basic model The basic strategic planning model is ideal for establishing your company's vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise. more
    What is basic planning model in tourism?
    Basic Planning Model Identify a problem. Identify a goal. Collect background data. Identify guidelines for assessing alternative plan scenarios. Identify alternative plan scenarios, including policies and guidelines, to achieve the goal. more

    Source: bizfluent.com

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