Four Major Elements of the Strategic Management Process
Introduction
The fundamental task of the management is to achieve the goals set before the organization at the
lowest cost and in the shortest possible time. In solving this task, according to most authors,
management theory and practice are based on four main functions: planning (setting goals of the
organization); organization (optimal allocation of forces and resources); motivation (striving to
ensure that all members of the organization work with maximum effort); constant monitoring and
correction of current work (focused on the implementation of the goals of the organization, a clear
response to external and internal conditions).
Accordingly, most authors believe that management is the effective and efficient achievement of
organizational goals through planning, organization, motivation, and control over organizational
resources. These functions are interrelated and have two common features: they all require
decision-making, and communication, information exchange will be necessary for all of them in
decision-making. The root of the information management process is the basis for making
management decisions. These decisions can be made using a variety of ever-changing
technologies.
Though the situational approach is now the leading one, the dissertation argues that the most
preferred is the systemic approach, as it focuses not only on the internal affairs of the organization
but also on the long-term prospects to keep pace with changes in the environment. The strategy to
be developed should also be put in place. In the context of the command-and-control system of the
economy, many organizations could operate successfully, focusing on the internal problems
associated with increasing the efficiency of resource use in the current activities. In the conditions
of transition to market relations, the stability of the education system has been undermined by
external influences, and it is no longer possible to return to the status quo2. Therefore, the
importance of strategic management, which allows to operate in a competitive environment even
in the long run, has increased significantly in recent decades.
The strategic management process is made up of four elements: situation analysis, strategy
formulation, strategy implementation, and strategy evaluation. These elements are steps that are
performed, in order, when developing a new strategic management plan. Existing businesses that
have already developed a strategic management plan will revisit these steps as the need arises, in
order to make necessary changes and improvements.
Elements of the Strategic Management Process
1. Situation Analysis
Situation analysis is the first step in the strategic management process. The situation analysis
provides the information necessary to create a company mission statement. Situation analysis
involves scanning and evaluating the organizational context, the external environment, and the
organizational environment. This analysis can be performed using several techniques. Observation
and communication are two very effective methods.
To begin this process, organizations should observe the internal company environment. This
includes employee interaction with other employees, employee interaction with management,
manager interaction with other managers, and management interaction with shareholders. In
addition, discussions, interviews, and surveys can be used to analyze the internal environment.
Organizations also need to analyze the external environment. This would include customers,
suppliers, creditors, and competitors. Several questions can be asked which may help analyze the
external environment. What is the relationship between the company and its customers? What is
the relationship between the company and its suppliers? Does the company have a good rapport
with its creditors? Is the company actively trying to increase the value of the business for its
shareholders? Who is the competition? What advantages do competitors have over the company?
2. Strategy Formulation
Strategy formulation involves designing and developing the company strategies. Determining
company strengths aids in the formulation of strategies. Strategy formulation is generally broken
down into three organizational levels: operational, competitive, and corporate.
Operational strategies are short-term and are associated with the various operational departments
of the company, such as human resources, finance, marketing, and production. These strategies
are department specific. For example, human resource strategies would be concerned with the act
of hiring and training employees with the goal of increasing human capital.
Competitive strategies are those associated with methods of competing in a certain business or
industry. Knowledge of competitors is required in order to formulate a competitive strategy. The
company must learn who its competitors are and how they operate, as well as identify the strengths
and weaknesses of the competition. With this information, the company can develop a strategy to
gain a competitive advantage over these competitors.
Corporate strategies are long-term and are associated with deciding the optimal mix of businesses
and the overall direction of the organization. Operating as a sole business or operating as a business
with several divisions are both part of the corporate strategy.
3. Strategy Implementation
Strategy implementation involves putting the strategy into practice. This includes developing
steps, methods, and procedures to execute the strategy. It also includes determining which
strategies should be implemented first. The strategies should be prioritized based on the
seriousness of underlying issues. The company should first focus on the worst problems, then
move onto the other problems once those have been addressed.
The approaches to implementing the various strategies should be considered as the strategies are
formulated. The company should consider how the strategies will be put into effect at the same
time that they are being created. For example, while developing the human resources strategy
involving employee training, things that must be considered include how the training will be
delivered, when the training will take place, and how the cost of training will be covered.
4. Strategy Evaluation
Strategy evaluation involves examining how the strategy has been implemented as well as the
outcomes of the strategy. This includes determining whether deadlines have been met, whether the
implementation steps and processes are working correctly, and whether the expected results have
been achieved. If it is determined that deadlines are not being met, processes are not working, or
results are not in line with the actual goal, then the strategy can and should be modified or
reformulated.
Both management and employees are involved in strategy evaluation, because each is able to view
the implemented strategy from different perspectives. An employee may recognize a problem in a
specific implementation step that management would not be able to identify.
The strategy evaluation should include challenging metrics and timetables that are achievable. If
it is impossible to achieve the metrics and timetables, then the expectations are unrealistic and the
strategy is certain to fail.
To conclude, the strategic management process is a continuous process. As performance results or
outcomes are realized – at any level of the organization – organizational members assess the
implications and adjust the strategies as needed. In addition, as the company grows and changes,
so will the various strategies. Existing strategies will change and new strategies will be developed.
This is all part of the continuous process of improving the business in an effort to succeed and
reach company goals.
REFERENCES
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of educational systems. Int. NPK "New science and the formation of a knowledge culture of
modern man." Moscow, 2018, S.358-363.
3. Haldarov H.A., Alimardanova N. Management of the quality of education using the TQM
system. Int. NPK "Problems of modern lifelong education, innovation prospects." Tashkent,
TSPU, 2018, S. 300-302
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