Strategic Management Process Paper
December 12, 2012
Strategic management is a set of managerial decisions and actions that determines the long run performance of a corporation (Hunger & Wheelen, 2010). It is all about identifying and picturing the strategies used for better performance and gaining a competitive advantage for the corporation. In order for this to take place the manager must have the knowledge to make the right decisions using the SWOT Analysis and utilize the corporation’s strengths and minimizing the weaknesses.
According to Hunger & Wheelen, (2010), corporations run the risk of error, costly mistakes, and economic ruin. Strategic management is used today to keep the corporations competitive in a volatile environment. The world is constantly changing and it is up to the managers to help the corporations evolve around it ...view middle of the document...
Phase 3- Externally oriented (strategic) planning is when top management takes control of the planning process by initiating strategic planning. In phase three the corporation seeks to increase its responsiveness to the ever changing markets and competition by thinking strategically (Hunger & Wheelen, 2010).
Phase 4- Strategic management is useless without all input from all levels of management and certain departments. In phase four the plan details the implementation, evaluation, and control issues and since no one can predict the future the plan emphasizes any scenarios that could happen and come up with contingency strategies. This plan is available to all people of the corporation instead of just the management team (Hunger & Wheelen, 2010).
According to Hunger & Wheelen, (2010), corporations want long-term performance and in order to be successful, corporations must not only execute current activities in an existing market but adapt to them as well. Strategic management benefits a corporation by giving a clearer sense of strategic vision, a sharper vision as to what is strategically important, and an improved understanding of a rapidly changing environment (Pg.6).
Corporations do not become successful by playing it safe, strategic risks are what is necessary for a successful corporations such as General Electric. General Electric launched the Ecomagination strategic initiative in 2005. The strategic plan included plans to address challenges such as the need for cleaner more efficient sources of energy. The risk included to double its spending on research and development, introduce new products, and reduce the corporations own emission to greenhouse gases and the intensity as well (Hunger & Wheelen, 2010).
Hunger, D., & Wheelen, T., (2010). Concepts in Strategic Management and Business Policy Achieving Sustainability, Twelfth Edition. Retrieved from the University of Phoenix website on December 13, 2012.