Saturday, October 19, 2019
Successful Adoption of Strategic Management Principle Research Paper
Successful Adoption of Strategic Management Principle - Research Paper Example Strategic analysis is the most important and first component of the strategic management process. It starts with analyzing the internal and external environments and the situation wherein the organization matches those environments (Hunger & Wheelen, 2000). After the completion of the strategic analysis, formulation of strategy follows. This requires establishing the strengths of the organization to choose which strategies can be put into practice. The third stage is the strategic implementation. It requires actualizing or executing the formulated strategy (Hunger & Wheelen, 2000). The last stage requires monitoring the outcomes of an implemented strategy. This strategic review is basically similar to strategic analysis, observing the external and internal environments and the situation (Hunger & Wheelen, 2000) of the organization to decide if a plan should be reconstructed. Strategic management contributes largely to the long-term success of an organization. It is effective in the s ense that it improves organizational outcomes through a structured process of strategic planning. However, strategic planning is not without cost or difficulties. It is difficult to perform; requires extensive knowledge and rigour; and without the right managerial leadership, it will not be able to maintain the participation of others in the organization (Hill & Jones, 2009). The process of strategic planning will fail if there is no genuine and sustained involvement. However, if an organization chooses not to undergo strategic planning it will generate opportunity costs.