The strategic management process definition is actually the organizations strategy to do better business. It is also defined as the process on how managers set strategies for an organization or company that will enable to perform better for the organization. Strategic Management helps industries and businesses have a better outcome at the end, in whatever it is the organization does. Every business wants to be successful and be at the top strategic management helps an organization get there.
Strategic Management also appraises its competitors and fixes goals to meet and do better than all present and future competitors. Strategic Management is made up of four steps which are; Environmental Scanning, Strategy Formulation, Strategy Implementation, and Strategy Evaluation. Environmental Scanning is the process of collecting, and providing useful information for strategic purposes. It makes it easier to analyze the internal and external factors bettering an organization or business.
After executing the environmental analysis process management should evaluate on a constant basis to try to improve and make the organization better. Strategy Formulation is basically means the process of making the best decision possible for the organization to be successful. When a decision in a organization is made they have to come up with a strategy formulation to make the best decision possible for the company to succeed. After an organization conducts environmental scanning, managers make up corporate, business and functional strategies.
Strategy Implementation is basically putting the strategy to work as intended. What every strategy management came up with strategy, implementation strategy is putting it to work. Strategy Evaluation is basically making sure that the strategy management came up with targets all the problems and not leave anything behind. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives. Strategic Management is very much needed to run a business to execute the company’s goals. It is lso used to make the best decisions possible for the better of an organization.
PepsiCo is a perfect example of an organization that uses strategic management. They use it for los of thing to where they are coming out with a new product to eliminating one. Managing day to day sales and merchandising. Having the customers happy is priority with PepsiCo, customers from Wal-Mart to ma and pa stores. In conclusion Strategic Management is needed in every organization large or small to always perform and execute the organizations goals.