Strategic management process defines the strategy of an organization. Through strategic management process, the managers of a particular organization are able to choose a set of strategies that leads to achievement of the set goals.
The strategic management process involves four steps that include: environmental scanning, strategy formulation, strategy implementation and strategy evaluation. Environmental scanning involves collection, scrutinize and provision of information for the strategic purposes. It assists the organization to analyze the external and internal factors affecting it (Kotler, 2000). The strategy formulation refers to the process of deciding the best course of action that can be applied to achieve the organizational goals. Strategy implementation involves making the strategy job as intended or putting the chosen strategy of the organization into action (Kinicki, 2008). The strategy implementation refers to the distribution of resources, management of human resources, development of the decision making process and the designing of the structure of the organization. The strategy evaluation is taken as the final step of the process. The principle strategy evaluation activities includes: appraising external and internal factors that are observed as the root of the present strategies, corrective actions and measuring performance. Evaluation normally makes sure that the implementation as well as the organizational strategy meets the set objectives. The above components represent all the steps that are taken, in chronological order, when forming a new plan of strategic management (Stahl, 1997).
Corporate governance is a set of principles, processes and systems by which an organization is governed. Fundamentally, there is a particular level of confidence that is normally associated with an organization that is known to have admirable corporate governance. The presence of a group of independent directors that is active on the board normally contributes a huge deal towards confidence in the market. Corporate governance is therefore known to be the key criteria that the foreign investors in various institutions look at as they choose the kind of the company to invest in. It is also well known to have a positive effect on the share price of the organization. Corporate governance that has secured a clean image makes it easier for various organizations to source capital at a reasonable cost (Courtney, 2002).
The environmental analysis often evaluates the external and internal factors that impact a company’s performance, especially its effort in marketing. The internal factors refer to the weaknesses and strengths of a company. On the other hand, the external factors refer to the opportunities and the threats that are presented by the forces outside the organization. Generally, the information is often used by the strategic planners to forecast the trends in advance.
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Quite a good number of firms are failing in their strategy implementation. This occurs due to ineffective leadership. If the company has an effective leadership, there is no way that strategy implementation will be successful. Weak leadership means that the organization’s employees do not respect the existing authority and thus do not work in regard to its commands. Inappropriate strategy is also a factor that fails strategy implementation. During strategic planning course, the lack of honest and realistic assessment of the organization will lead to a weak and inappropriate strategy. Without a strategy that is viable, various firms struggle in taking up actions that effectively implement the identified plan (Abrams, 2003).
There are a good number of alternatives that can be taken in various situations. If the acting leader is providing ineffective leadership, another leader should be elected or appointed to save the company from collapsing. This will enable the organization in achieving its goals. If the plans that had been laid are not effective, they should be resolved to form the ones that can lead to the success of the organization.
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