Strategic management comprises several key components that work together to ensure a business achieves its objectives. These components are interconnected and iterative, contributing to a comprehensive and adaptable management strategy.
Here's a breakdown of the core components of strategic management, according to the references:
Key Components of Strategic Management
| Component | Description |
|---|---|
| 1. The Start | Defining the initial vision and mission of the organization. This sets the stage for all subsequent strategic actions. |
| 2. Analyzing | Involves a thorough examination of both the internal and external environments. This includes assessing strengths, weaknesses, opportunities, and threats (SWOT analysis). |
| 3. Goal Setting | Establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals provide direction and a basis for evaluating success. |
| 4. Strategy Formulation | Developing various strategic options and selecting the most appropriate one based on the analysis and goals. This involves creating a detailed plan of action. |
| 5. Forming the Strategy | Further defines the strategy selected, including its structure, roles, and procedures |
| 6. Strategy Implementation | Putting the strategic plan into action. This involves allocating resources, assigning responsibilities, and managing the change process. |
| 7. Implement the Strategy | A more detailed reiteration of strategy implementation that includes ongoing monitoring. |
| 8. Strategy Evaluation | Monitoring the progress of the strategy and making adjustments as needed. This ensures that the organization stays on track and adapts to changing circumstances. |
In essence, strategic management is a continuous cycle involving:
- Defining the organization's purpose.
- Analyzing the environment.
- Setting strategic goals.
- Formulating a strategic plan.
- Implementing that plan.
- Evaluating and controlling the plan.
By systematically addressing each of these components, organizations can improve their chances of achieving sustainable competitive advantage and long-term success.
