Strategic Management Process, Research Paper Example

“Strategy is a highly complex concept and attempts to define it adequately within the compass of a sentence or two are almost certainly going to miss out some key elements” (Wheelen, et. al., 2008). Corporate meaning of strategy is the plan that organizations create to fulfill their long-term goals and purpose. The purpose of an organization is to guard their business success and fulfill the demands and expectations of stakeholders which would mean adding value to shareholders’ investment. Strategic management planning is very essential in order to gain competitive advantages in political, social, and commercial environment. For the success of the company, it is very important to have efficient and effective strategic management planning. “For the efficient strategic management process there is a process operated by the business and which has three main components, for instance, strategic position, strategic choices and translating the strategy into action” (Wheelen, et. al., 2008).

Components

Strategic position

One of the great advantages of outlining a strategic position is it gives you a touchstone when making business decisions. Just as a well written mission statement guides your company’s values and long term vision, “a well delineated strategic position influences almost every aspect of your business, such as the development of your products or services, marketing, operations, and choice of location” ( Hubpages. 2010). You can differentiate your company from its competitors in many ways and can probably started a company with a sense of vision or purpose. “Company’s strategic position should be where they can find the following coming together;

Strength and interests, industry trends and developments, market changes and opportunities, competitive changes and opportunities and changes and opportunities brought through new technologies” (Hubpages, 2010).

Strategic choice

Strategic choice means decision making. Once an organization all data and information is accessible then decision making process can occur.  The key element of choice depends upon the identification that which field of business provides the most opportunity for competitive advantage especially in commercial circumstances. For instance it can be service or products or price and technology.

Translating strategy into action

As a strategy translator, organization must first understand the corporate strategy and determine what parts of it organization can best support. Then next step is to translate it into an action plan for the company, making sure it align well to the overall strategy. “It is very important to understand the company’s strategy; translate that strategy in a way that creates meaning and increases the alignment and commitment of the organization” (Hubpages, 2010).  Translation process is all about to make sure that organization structure is organized which can help in the successful implementation of strategic plan.

Resource Management

The resource management problem is as old as mankind. It involves programming goals and objectives into specific programs, projects, and activities, designing organizational processes to carry out approved programs and plans, and staffing these processes and procuring the necessary resources to carry out search the plans and programs. Resource management is the link between goals and objectives and the actual performance of organizational activities.

Strategic Management Process of Wal- Mart

Wal-Mart is the world successful organization and has great strategic management process.  “Wal-Mart is successful not only because it makes sound strategic management decisions, but also for its innovative implementation of those strategic decisions” (Wal-Mart 2010).  Wal-Mart founder, Sam Walton is the great cause of Wal-Mart success. He believed that if company employees are happy then it means more sale and satisfied customers. Due to sound strategic decisions, Wal-Mart has the vision to help people live a better life by saving their money. “Their motto is to operate with integrity and respect and deliver the brand promise to customers” (Wal-Mart Stores Inc. (2010).

References

Wheelen, T. L., & Hunger, J. D. (2008). Concepts in strategic management and business policy (11th ed.). Upper Saddle River, NJ: Pearson Education.

Hubpages. (2010). Strategic management. Retrieved from http://www.hubpages.com

Wal-Mart Stores Inc. (2010). Yahoo finance. Retrieved from http://finance.yahoo.com