Unlike the common notion that a strategic management process is just a handbook of necessary rules to follow when running an organization, it is a basic principle that can make the difference between a successful business and a run-of-the-mill one. So if you are dreaming of achieving success in your business venture, take a look at the most important stages of a strategic management process that would help you out.
Stage I: Setting the goals and vision
Before actually starting the business, you would need to formulate the main goals and objectives of the organization. This would mean deciding beforehand, what kind of business the organization would do, including those pertaining to the exact nature of the business and the kinds of products or services that would be offered.
The vision is a long term commitment that would enable the company to march together as one team towards a set goal. Setting a vision would enable the organization and its employees remain focused on the work at hand, and work together to make the business a success.
Step II: Analyzing different market opportunities and competitors
The market is overridden with companies offering similar products or services to customers. So there is a strong chance for you to gain quite a few competitors as soon as you enter the market. Therefore, studying the market conditions and requirements beforehand can help you define appropriate standards for your organization in order to meet and satisfy client requirements.
Another added advantage of analyzing the market beforehand is that it would give you access to similar business ventures that have already tasted success. You could do some research on these companies and find out the ways in which they are able to sustain during changing market conditions. And this would enable you to shape your business to accommodate new opportunities as you rise.
Step III: Analyzing internal strengths and weaknesses
An organization can remain successful in the competitive market only if it knows its own strengths and weaknesses beforehand. Knowing this piece of vital information would enable the organization to remain focused on its strengths and improvise them, while silently working on its weaknesses as well. Identifying a particular problem or weakness beforehand would also avert potential disasters related to the same later on.
Step IV: Planning and implementing the strategy
The above mentioned stages would enable a company to come up with a strategic plan that would enable it to grow in the market in spite of its weaknesses. And once this plan is formulated, the next step would involve implementing the plan and executing it properly.
A proper implementation timetable should be formulated and sent along with the basic strategy to all levels of the organization. Miscommunications among levels need to be cleared right away, and clarity needs to be maintained at all levels with regard to individual tasks and goals. The different levels would need to work individually, as well as with the other levels to contribute to the overall growth of the organization.
Step V: Following up on strategic plans and goals
Any organization would need to find out where it is headed in terms of growth and development. After a strategic plan has been implemented and executed, the next step would be to follow up on it by establishing the control system that would enable the higher management to keep a track on the way things are shaping up for the organization. The control system would evaluate whether the company is moving in the desired direction, has been growing at the expected rate and has any problems that need to be tended to in order to avoid issues later on.
