The Strategic Management Process

The strategic management process It is basically composed of:

1. Strategic analysis
2. Strategic planning
3. Implementation of the strategy and control of the execution

In companies made up of several business' units the strategy is formulated at two levels: the corporate (which involves the entire corporation) and the strategy for each business unit. In general in the corporative strategy preliminary guidelines are established to integrate the strategies business units and thus take advantage of their synergy and overall corporate success.

The development of strategic guidelines preliminaries includes:

1. The evaluation of the structure of the corporate unit. This involves studying each business unit and how they relate to each other.
2. Identification of possible scenarios
3. Preliminary setting of the mission and objectives.
4. Planning guidelines for each unit strategic

The definitive formulation of the corporative strategy and the final integration with all the strategic units of the business, are carried out once the strategic planning of the latter.

Strategic management process for a business unit:

• Organization of the process: at this point they are organized how the strategic management process is going to be carried out.
• Evaluation of the current strategy and setting of goals: in this stage an evaluation is made of how the company is currently and what the goals of the objectives are.
• Analysis of the environment: This analysis is an external analysis, which can be developed with the SWOT analysis tool (with the analysis of opportunities and threats).
• Internal analysis: the internal analysis as in the previous point can be developed with the analysis SWOT (through analysis of strengths and weaknesses)
• Development of strategic alternatives to have alternative courses of action planned
• Development of the strategic plan
• Strategy implementation
• Strategic control

As previously mentioned, once the strategic management process has been developed for each business unit, the development of the corporate strategy can continue.