planning and design

Strategic Management Process

Thomas Alejandro

MGT/498

June 2, 2014

Amy Novoa

Strategic Management Process

Strategic management is a set of managerial decisions and actions that determines the long run performance of a corporation (Wheeler & Hunger, 2010). This process includes the design and implementation of goals, strategic formulation and the implementation of those goals and strategies. There are four steps of strategic management process that a company must go through to develop this plan.

The four steps of the process includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Environmental scanning is the gathering of external and internal information. During this stage management takes external opportunities and threats that are outside the organization as well as internal strength and weaknesses such as the corporation’s structure, culture, and its available resources. Next the strategy formulation stage centers on developing long range plans for the organization. This is where the organizations mission, objectives, strategies, and policies will be formulated. The strategy implementation stage take the strategy formulation stage and turns them into action. This is where strategy implementation takes place. At this stage programs, budgets, and procedures are put in place to carry out the task. Finally there is evaluation and control. This process is where the actual performance is compared to the desired performances and the results are measured. Managers will use these results to take action if there is any weaknesses in the plan and allow them to corrective actions and resolve any problems.

The strategic management is needed for a company because it allows a company to be more flexible in an environment that is always changing. Strategic management helps a company sustain long-term performance. For companies that do not practice strategic management, it is very hard to maintain their performance for the long run.

The Dr Pepper Snapple Group has four key elements of strategic management process. The first step is to build and enhance their leading brands. The next step is to focus on opportunities in high growth and high margin categories. After that the company want to increase presence in high margin channels and packages. Then they leverage their integrated business model, strengthen our route-to-market through acquisitions, and finally improve operating efficiency ("Our Strategy", n.d.).

There are four main steps for a company to develop a strategic management process, and completing this process is necessary for a company to see long-term success. Most successful companies will have a strategic management process, and understanding this process is key for long term success.

References

Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business

policy (12th ed.). Upper Saddle River, NJ: Pearson Education.

Our Strategy. (n.d.). Retrieved from http://investor.drpeppersnapplegroup.com/strategy.cfm