Explain the essential compponents of the strategic management process?

http://en.wikipedia.org/wiki/Strategic_management

That wiki quote of the Lamb definition is right on the mark.

The strategic management process involves a series of steps and activities that organizations undertake to formulate, implement, and evaluate their strategies. There are several essential components of the strategic management process:

1. Strategic Analysis: This is the first step in the process, where organizations assess and analyze their internal and external environments. It involves scanning the internal resources, capabilities, and strengths of the organization, as well as examining the external factors such as industry trends, customer needs, and competitors' actions. Strategic analysis helps in identifying opportunities and threats that can impact the organization's strategy formulation.

To conduct a strategic analysis, organizations can gather data through various methods, such as conducting market research, performing SWOT analysis (examining strengths, weaknesses, opportunities, and threats), and assessing the competitive landscape.

2. Strategy Formulation: Once the organization has completed the strategic analysis, the next step is to develop a strategy. Strategy formulation involves setting strategic objectives and determining the course of action to achieve those objectives. This includes identifying target markets, selecting business models, making strategic choices, and setting performance metrics. The strategy should align with the organization's mission, vision, and values.

To formulate a strategy, organizations can use frameworks such as Porter's Five Forces analysis, the Value Chain analysis, or the Ansoff Matrix. These tools can help in analyzing market dynamics, competitive positioning, and growth opportunities.

3. Strategy Implementation: After the strategy has been formulated, it needs to be translated into action. Strategy implementation involves allocating resources, designing organizational structures, developing policies and procedures, and establishing organizational processes. This step requires effective leadership, communication, and coordination to execute the strategy throughout the organization.

To implement the strategy successfully, organizations should create an implementation plan that outlines tasks, responsibilities, timelines, and performance indicators. It is important to engage employees at all levels, provide training and support, and monitor the progress of implementation.

4. Strategy Evaluation and Control: The final component of the strategic management process is evaluating the effectiveness of the strategy and making necessary adjustments. Strategy evaluation involves measuring the performance against the strategic objectives, assessing the outcomes, and identifying any deviations or gaps. This helps in determining whether the strategy is working as planned and if any corrective actions are required.

To evaluate the strategy, organizations can use various performance metrics, such as financial indicators, customer satisfaction surveys, market share, and employee feedback. Regular monitoring, analysis of key performance indicators, and feedback mechanisms enable organizations to identify areas of improvement and make strategic adjustments.

In summary, the essential components of the strategic management process include strategic analysis, strategy formulation, strategy implementation, and strategy evaluation and control. Each component requires a systematic and structured approach for effective strategic management.