Strategic Management Process

Name
MGT/498
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Instructor Name

The primary components of strategic management are environmental scanning (external opportunities and threats), strategy formulation, strategy implementation, and evaluation, and control. Environmental scanning focuses on knowing if the type of environment they plan to do business in will be beneficial for their business. According to Wheelen and Hunger, (2010), “Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors—those external and internal elements that will determine the future of the corporation.” Environmental scanning is a process company’s use to help determine what kind of service they can provide for their consumers as well as what the organization can do to stand out from other existing competitors. An internal factor of environmental component is for a company to help determine any possible issues or changes within the organization. Strategy formulation is a strategy used to help organizations determine the best strategy that will create a successful organization. Sometimes several strategy formulations are to cover several areas of an organization. According to Wheelen and Hunger, (2010), “Strategy formulation is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses (SWOT).” Strategy formulations are for company’s to accomplish various goals of the business in an organized manner. If formulations are not created, businesses will fail because there is no plan to lead an organization to success. Strategy implementation consists of implementing effective strategies created by leaders and managers involve several operational areas of the business. According to Wheelen and Hunger, (2010), “Strategy implementation is a process by which strategies and policies are put into action through the development of programs, budgets, and procedures.” Strategy implementation is for company’s to move forward in there goals and tasks determined by the leaders and managers of the organization. The implementation strategy is strategies that will help a company accomplish goals and tasks required to manage a successful business. Evaluation and control are important components to maintaining the success of the business. Tracking the various components of a business will help determine what components are successful and what areas need improvement. Control will help maintain results and products and services within the organization. According to Wheelen and Hunger, (2010)., “Evaluation and control is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance. Managers at all levels use the resulting information to take corrective action and resolve problems.” Evaluation and control are useful tools for a company to maintain and control the various areas of the business. Evaluation and control helps to maintain products, services, and integrity. Strategy management process is an essential tool that covers various components of a business. Applying strategic management process shows the organization has a plan created to help the organization succeed and overcome potential issues may deter the company from success.

The strategic management processes of Wal-Mart consist of their strategic formulation of business level strategy. The business level strategy focuses on ways to transport products to various country’s without high traveling