Literature Review: Strategic Management Process



Literature Review: Strategic Management Process

Introduction

Strategic management is management that relies on human capital as the basis for the organization, directs production activities on the needs of consumers, and provides flexibility to respond timely changes in the organization to meet the call from the environment and allow to achieve competitive advantage, all of which enables the organization to survive in the long term, while achieving their goals. Strategic management refers to the industry of Business Administration, which is engaged in developing, planning and implementation of the content, purpose and direction of the organization(Adrian, 2002). The period of time in strategic management generally contain two to five years, and not strategically equivalent to a shorter term, because it is based on the strategic implications. Because of the strong overlap with the objects of policy and the importance of product marketing for the company's strategic stakeholder management is strongly consistent with the concept of corporate governance. The purpose of this paper is to develop literature review on the process of strategic management.

The core of strategic management is the system of strategies, including a number of interrelated specific business, organizational and labor policies. Strategy - a pre-planned response to changes in the organization of the environment, the line of conduct, chosen to achieve the desired result. Key features of the strategic aspects of management of the organization in comparison with the operational (current) control practiced in business for over 20 years ago. Strategic management is an exciting process that allows an organization to be proactive rather than reactive in formulating its future. It is the formulation, implementation and evaluation of actions that allow an organization to achieve its objectives (Alan, 2000). The formulation of strategies includes identifying the strengths and weaknesses within an organization, the identification of external threats and opportunities of a firm, the establishment of missions in the industry, setting goals, developing strategies, alternative The analysis of these alternatives and the decision to choose from. The implementation of strategies requires the firm to set goals, devise policies, motivate employees and allocate resources so that formulated strategies can be implemented successfully. Strategy evaluation checks the results of the implementation and formulation. It can be defined as an objective and systematic approach that allows the company to take a proactive rather than reactive position in the market competing for not just settle for responding to the facts, if not to influence and to anticipate them (Arillo, 2003).

Importance of Strategic Management

Strategic management is vital in large enterprises; strategic management process is applied equally to both large and small companies. From the moment of conception, every organization has a strategy, although she has only source of daily operations. Its importance lies in the need to define the concept of the company and its nature, and also, because they are there, and who you serve, the principles and values ??under which they must operate and what the future of your company should be (Bandrowski, 2000). And also need to assess the direction in ...