Mgt498 Essay examples

607 Words Jan 22nd, 2014 3 Pages
Strategic Management Process MGT/498 – Strategic Management
Strategic Management Process The strategic management process is a philosophical approach to business that consists of four basic elements: environmental scanning, strategy formulation, strategy implementation, and evaluation and control (Wheelen & Hunger, 2010). This paper examines these elements, why this process is important, and discusses the strategic management process of Microsoft Corporation.
Environmental Scanning Environmental scanning involves an in-depth analysis of the factors that can affect the goals of the company (Clayton, 2013). This information is disseminated to the key people within the company and is often conducted through SWOT
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If performance is not moving the company toward its goal, management can use the information to make corrections. An important consideration is that newly identified weaknesses in the strategic plan itself should be used to develop new strategic plans. The approach to strategic planning can be top-down, bottom-up, or concurrent. In most cases, the board of directors expects top management to ensure that all levels of the process work together and in the same direction, ultimately leading to the achievement of the corporate goal (Wheelen & Hunger, 2010). Microsoft Corporation tends to employ an approach that takes the process a step further. Steven Sinofsky, president of the Windows and Windows Live divisions, employs a strategy in which all levels of the organization are integral to the decision-making process. Rather than traditional “top-down” management in which the few at the top make the decisions and disseminate information down the pipeline, he recognizes the value of input from those closest to the work. He describes the process as driving toward a set of goals by striking balance between all levels from the top-down, bottom-up, and the middle out (Sinofski & Iansiti, 2010). In conclusion, the strategic planning process is necessary for a company

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