The strategic management approach entails more than just following a set of guidelines. It's a way of looking at business from a philosophical standpoint. Upper management must first plan strategically, then put that strategy into action. When everyone in the company understands the strategy, the strategic management process works best. Show
The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring. Clarify Your VisionThe purpose of goal-setting is to clarify the vision for your business. This stage consists of identifying three key facets: First, define both short- and long-term objectives. Second, identify the process of how to accomplish your objective. Finally, customize the process for your staff, give each person a task with which he can succeed. Keep in mind during this process your goals to be detailed, realistic and match the values of your vision. The next step in this stage is usually to produce a mission statement that explains your aims to both your stockholders and your employees succinctly. Gather and Analyze InformationAnalysis is a key stage because the information gained in this stage will shape the next two stages. In this stage, gather as much information and data relevant to accomplishing your vision. The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow. Examine any external or internal concerns that may have an impact on your aims and aims. Make a list of your organization's strengths and weaknesses, as well as any dangers or opportunities that may occur along the way. Formulate a StrategyThe first step in forming a strategy is to review the information gleaned from completing the analysis. Determine what resources the company currently has that can assist in achieving the set objectives and goals. Identify any places where the company will need to hire outside help. The difficulties that the company is facing should be prioritised based on how important they are to your success. Once prioritized, begin formulating the strategy. Because business and economic situations are fluid, it is critical in this stage to develop alternative approaches that target each step of the plan. Implement Your StrategySuccessful strategy implementation is critical to the success of the business venture. This is the action stage of the strategic management process. If the overall strategy does not work with the business' current structure, a new structure should be installed at the beginning of this stage. Everyone within the organization must be made clear of their responsibilities and duties, and how that fits in with the overall goal. Additionally, any resources or funding for the venture must be secured at this point. Once the funding is in place and the employees are ready, execute the plan. Evaluate and ControlStrategy evaluation and control actions include performance measurements, consistent review of internal and external issues and making corrective actions when necessary. Any successful evaluation of the strategy begins with defining the parameters to be measured. These parameters should mirror the goals set in Stage 1. Determine your progress by measuring the actual results versus the plan. Monitoring internal and external issues will also enable you to react to any substantial change in your business environment. If you determine that the strategy is not moving the company toward its goal, take corrective actions. If those actions fail, go through the strategic management process again. Because internal and external concerns are always changing, any information gathered at this point should be saved to aid future initiatives. Read Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support . We'll provide a PDF copy for your screen reader. With a personal account, you can read up to 100 articles each month for free. Get StartedAlready have an account? Log in Monthly Plan
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journal article The Journal of Business Vol. 46, No. 3 (Jul., 1973) , pp. 349-367 (19 pages) Published By: The University of Chicago Press https://www.jstor.org/stable/2351385 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $14.00 - Download now and later Journal Information The Journal of Business ceased publication with the November 2006 issue (Volume 79, Number 6). Founded in 1928, The Journal of Business was the first scholarly journal to focus on business-related research and played a pioneering role in fostering serious academic research about business. However, in appreciation of the increasing specialization in business scholarship, as reflected in the emergence of many specialized business journals, the faculty of the University of Chicago's Graduate School of Business decided after careful deliberation and extensive dialogue to cease publication of the more broadly focused Journal at the end of 2006, after nearly eight decades of publication by the University of Chicago Press. Publisher Information Since its origins in 1890 as one of the three main divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote education, foster public understanding, and enrich cultural life. Today, the Journals Division publishes more than 70 journals and hardcover serials, in a wide range of academic disciplines, including the social sciences, the humanities, education, the biological and medical sciences, and the physical sciences. Rights & Usage This item is part of a JSTOR Collection. Which is more important strategy formulation or strategy implementation?Implementation is the process that turns your strategies and plans into actions so you can accomplish strategic objectives and goals. Implementing your strategic plan is as important, or even more important, than your strategy.
Which level of strategy is the most important?The corporate level is the highest, and therefore the most broad, level of strategy in business. Corporate-level strategy should define your organization's main purpose. It should also direct all your downstream decision-making.
What is crucial to the formulation of strategies in the Organisation?Strategy formulation is the process of using available knowledge to document the intended direction of a business and the actionable steps to reach its goals. This process is used for resource allocation, prioritization, organization-wide alignment, and validation of business goals.
Why is it so important in strategy formulation and implementation?Strategy formulation is essential for achieving and measuring the attainability of goals. After creating strategies, an organization typically educates its employees so they know the organization's purpose, workplace objectives and goals.
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Which is more critical to the entity strategy formulation or Strategy Implementation?
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