1. Explain each of the component activities in the definition of the strategic management process. Which of these activities do you think is most important to the success of an organization? Why?
The components of the strategic management process are shown in Figure 1.1. They include direction setting, external and internal environmental analysis, strategy selection, allocation of resources, building relationships, and finally evaluating performance. The key activities in the process begins with (1) a situation analysis of the broad and operating environments of the organization, including internal resources, and both internal and external stakeholders; (2) establishment of strategic direction, reflected in mission statements and organizational visions; (3) formulation of specific strategies, which is often divided into three levels—corporate, business, and functional and (4) strategy implementation, which includes designing an organizational structure, controlling organizational processes, managing relationships with stakeholders, and managing resources so as to develop competitive advantage. Figure 1.4 provides a visual presentation of the process. Of course, all of the activities are important.
1. Explain each of the component activities in the definition of the strategic management process. Which of these activities do you think is most important to the success of an organization? Why?The components of the strategic management process are shown in Figure 1.1. They include direction setting, external and internal environmental analysis, strategy selection, allocation of resources, building relationships, and finally evaluating performance. The key activities in the process begins with (1) a situation analysis of the broad and operating environments of the organization, including internal resources, and both internal and external stakeholders; (2) establishment of strategic direction, reflected in mission statements and organizational visions; (3) formulation of specific strategies, which is often divided into three levels—corporate, business, and functional and (4) strategy implementation, which includes designing an organizational structure, controlling organizational processes, managing relationships with stakeholders, and managing resources so as to develop competitive advantage. Figure 1.4 provides a visual presentation of the process. Of course, all of the activities are important.
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