BUS4101 Week 2 Disc

Strategic Management

You have learned that an organization needs to take several initiatives to ensure and retain quality and,

as a result, gain a competitive advantage in this highly competitive global market. One of the key

components of any quality initiative is strategic management.

Strategic management refers to a systematic process of identifying the key areas where quality improvement is needed, creating a strategic plan to bring about the required quality improvement, and

executing the strategic plan to improve quality and ensure its continuous improvement. 

The steps of the strategic planning process are arranged below according to the sequence in which

they are performed in a real-life situation: 

1. Strength, Weakness, Opportunity, and Threat (SWOT) Analysis

This analysis is the key to the strategic management and planning processes. It is impossible for a business to know where it wants to go if it doesn’t know its present position in relation to itself, its

products, and other businesses that affect it. SWOT analysis helps evaluate the present situation of a

business in terms of its strengths, weaknesses, opportunities, and threats.

2. Vision Statement

Based on the present position of the business, as analyzed through SWOT, the vision statement is

developed. The vision statement explains why and where the business wants to go.

3. Mission Statement This statement describes the objectives and direction of a business.

4. Guiding Principles

These principles establish a framework that works around the mission statement.

5. Strategic Objectives

These measurable objectives are derived from the vision and mission statements and the guiding

principles.

6. Action Plan

This plan includes de�ned strategies to implement the strategic planning process and to meet the

identi�ed objectives. These strategies may focus on operations, �nance, marketing, and human

resources.

The application of these strategic planning steps can sometimes be better understood in the context of

an example.  Review the Supplemental Media entitled “Strategic Planning Example” to see these steps applied to a scenario that might be faced by a real company. 

Additional Materials

Strategic Planning Example 

(media/week1/SUO_BUS4101%20W1%20L3%20Strategic%20Planning%20Example.pdf?

_&d2lSessionVal=vlG2w4GLnr9erI10ZCLnbwrV8&ou=90832)

View a PDF transcript of Steps in Strategic Management

(media/transcripts/SU_BUS4101_W1_L8_G1.pdf?

_&d2lSessionVal=vlG2w4GLnr9erI10ZCLnbwrV8&ou=90832)

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