Strategic Management ProcessStrategic Management ProcessMGT/498Letesia PooleSeptember 1, 2014University of PhoenixInstructor: Margaret FriseStrategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation. The primary components of strategic management consist of four phases which consist of the following: basic financial planning, forecast based planning, external oriented planning, and strategic management. This process is all about driving the company's growth through effective management techniques focused on goal-setting.The financial planning phase consists of managers within the firm proposing an annual budget while halting normal company operations. Although the process seems very simplistic it can be very time consuming. During the forecast based phase, managers are in the process of proposing budgets that may rollover into the next year or years to come (usually 3- 5 years). Once this phase is complete the organization rolls into the external strategic management phase. This phase is handled by upper management and focuses on the strategic needs of the company. The organization becomes more alert and responsive to the outside market; therefore, it is not uncommon for outside consultants to step in and assist with planning. Lastly, the final phase known as strategic management incorporates all levels of the corporation. Managers from various corporations stated that the strategic management process is best implemented when everyone in the organization understands the strategy.The company's strategic management plan that I chose to evaluate is Wal-Mart. Their strategic initiative plan consists of the following: The three initiatives are; Save Money, Live Better; Win, Play, Show; and Fast, Friendly, Clean. Wal-Mart's main goal is to keep "everyday low prices." The do so by promoting their private label brand and reducing the number of brands in the store.Wal-Mart wants to improve the customer's in-store experience as well as becoming more efficient in and out of each store. Once upper level management initiates and completes the process they then discuss the plan with hourly employees.Strategic planning can be a complex process but with the proper resources in place an organization can be very successful if they follow the steps accordingly. The company should determine their progress by measuring the actual results versus the plan. Monitoring internal and external issues will also enable an organization to react to any substantial change in their business environment. If management determines that the strategy is not moving the company toward its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process.ReferencesClayton, J. (n.d.). The Five Stages of the Strategic Management Process. Retrieved from http://smallbusiness.chron.com/five-stages-strategic-management-p rocess-18785.htmlMurray, M. (n.d.). Wal-Mart's Strategic Initiatives. Retrieved from http://logistics.about.com/od/industryfocus/a/Wal-Mart.htmWheelen, T. L., & Hunger, D. (2010). Concepts in Strategic Management and Business Policy Achieving Sustainability (12th ed.). Retrieved from The University of Phoenix eBook Collection database..
