Strategic Management Process
Strategic management provides overall direction to the company and involves specifying the organization's role and future vision. Management develops a strategic plan, then turn’s that thought into a process. Implementing the process is more productive when everyone in the business understands the strategy. Some benefits of strategic management include a clear sense of strategic vision for the company, a sharper focus on what is important, and an improved understanding of the rapidly changing environment. Gaining and sustaining competitive advantage requires rapid technical and technological adjustment, huge investment, and a high level of production and sales flexibility, regarding not only product width and depth but also line size, sales, and after-sales services (Kaličanin, D., & Knežević, V., 2013).
The process starts with ...view middle of the document...
Then the firm will use Strategy Implementation to select the strategy. This part accomplished by utilizing the budgets, programs, and procedures, and finally the company will use the stage called Evaluate and Control. In this final stage, a firm with good leadership will make the corrections and adjustments necessary for the plan to work (Carpenter, M. A., & Sanders, W. G., 2009).
Johnson & Johnson uses this process by using a set of strategic principles. They focus on healthcare and managing it long term with a decentralized management approach, and the unique culture that values the development of their people (Johnson &Johnson Services, 2014). They also focus on the growth of the future and innovation. They create value through innovation, they extend globally, and locally to give excellence in everything they do. The mission and values statements guide the business in ethical decisions with the consumers, doctors, nurses, and their products. Johnson & Johnson has a responsibility to stay informed of competition, the current innovations, and provide respect towards the community (Johnson &Johnson Services, 2014). The company has a value and it reads; by caring, one person at a time, we aspire to help billions of people live longer, healthier, happier lives (Johnson &Johnson Services, 2014). There is no company better positioned to achieve this aspiration than Johnson & Johnson (Johnson &Johnson Services, 2014).
Strategic management process is important to extend the life and profit of a firm. This plan will encourage innovation, and success, because it supplies the firm with ways to gather knowledge and awareness of the competition. It also gives management new ideas and a direction for problem solving and respect for employees and consumers. In 2013, there was a recall on a product but instead of giving up, this company used strategic planning to recover (Johnson & Johnson, 2013). Johnson & Johnson proves when this plan is implemented it can inspire people to have faith in that company, which leads to prosperity and profit.