The Nature of Strategic Management

INTRODUCTION
Strategic Management Process
Click on each title to learn more about the Strategic Management Process.

Strategy Formulation Stage.
Develop a vision statement that addresses what the company intends to do-this is often one sentence and is considered the first step in the strategic management process.

Develop a mission statement that identifies the scope of the company’s operations-this statement addresses the values and priorities of the organization.

At this point in the process a company should perform an External Audit and an Internal Audit aimed at identifying key opportunities and threats.

Establish Long-Term Objectives that identify expected results of company strategies-generally a 2 to 5 year period.

Evaluate and Select Alternative Strategies that help move a company from its present position to a future position-these are derived from the vision, mission, objectives, external and internal audits.

Strategy Implementation Stage.
In Strategy Implementation a company should establish short-term objectives and allocate resources in order to better achieve its strategies. Strategy implementation is doing what you say you are going to in the strategy formulation stage. In implementing strategies, a company will likely experience issues in key departments like management, marketing, finance, accounting, R&D, and MIS. Leaders in these departments should anticipate issues and work to resolve them as part of the implementation process.

Strategy Evaluation Stage.
Strategy Evaluation is a critical piece in the strategic management process because it allows the company to identify problems or potential problems early. The three basic activities in strategy evaluation are: 1) examining the firm’s strategy, 2) comparing expected and actual results, and 3) taking corrective actions when needed.

Strategic management is “the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives” (David & David, 2017). Strategy formulation includes the development of a vision, a mission, identifying external opportunities and threats, determining internal strengths and weaknesses (also known as a SWOT analysis), and establishing long-term strategies and objectives. Strategy implementation requires the organization to create policies, short-term objectives, and to allocate resources so strategies can be achieved. Strategy evaluation reviews external and internal factors, measures performance, and takes corrective action. Strategy formulation can occur at the corporate, divisional, business unit, or functional level. There are financial and non-financial benefits in strategic planning. Success increasingly depends upon being competitive in the global market. Strategic planning can help achieve this imperative. In this unit, we will review the nature of good strategic management and establish a framework for more detailed study on individual strategic management components.

Reference
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.). Boston, MA: Pearson.

OBJECTIVES
To successfully complete this learning unit, you will be expected to:
Describe the principles of strategy formulation, implementation, and evaluation.
Describe how a firm might achieve competitive advantage.
Analyze the opportunities, threats, strengths, and weaknesses of a real-life case. (see COWI attachments as the real life company for this whole Project.)

Unit 01 Study 1
UNIT READINGS
Read Chapter 1, “The Nature of Strategic Management.”
Read the Hersey Company, Inc. 2015 cohesion case, found in the latter part (eBook) of Chapter 1.
Also, review the following online information:
Strategic Management Club. Review various sections and check out the free benefits.

Fortune Magazine Online. Review the Web site and prepare for this unit’s Competitive Advantage—Intel Corp and Andy Grove discussion by reading the article, “The Education of Andy Grove.”
Web search: Complete a Web search on the subject of strategic planning.

[u01s2] Unit 01 Study 2
INTERVIEW SETUP

In Unit 2, you will interview a person at the company you have selected for your project. To prepare for that interview, please determine whom you will interview and set an appointment with that person. Ideally, the person you interview will be a director, vice president, owner, or chief executive officer of the organization. Please review the project description.

[u01a1] Unit 01 Assignment 1:
STRATEGIC ANALYSIS

Strategic Analysis Scoring Guide (see attached) .
In this assignment, you will choose the organization that you will use as the case study for your course project. Ideally, the company you choose will be a familiar one. (COWI attachments).