According to Hill and Jones (2011), it concentrates on developing a strong foundation for the organization that will afterward be expanded through the concerted endeavors of the members of the organization.
According to Hunger and Wheelen (2000), the strategic management process is composed of four components, namely, strategic analysis, strategic decision, strategic implementation, and strategic review. These components are stages that are carried out sequentially when creating a strategic management plan. It should be followed in the manner shown below:
By dealing with each component of the strategic management process in the way shown in the above figure, organizations can review and re-assess conditions as they emerge, constantly monitoring to be certain the organization has placed itself most favorably in the business environment.
Strategic analysis is the most important and first component of the strategic management process. It starts with analyzing the internal and external environments and the situation where in the organization matches those environments (Hunger & Wheelen, 2000). After the completion of the strategic analysis, formulation of strategy follows. This requires establishing the strengths of the organization to choose which strategies can be put into practice. The third stage is strategic implementation. It requires actualizing or executing the formulated strategy (Hunger & Wheelen, 2000). ...
It is effective in the sense that it improves organizational outcomes through a structured process of strategic planning. However, strategic planning is not without cost or difficulties. It is difficult to perform; requires extensive knowledge and rigor; and without the right managerial leadership, it will not be able to maintain the participation of others in the organization (Hill & Jones, 2009). The process of strategic planning will fail if there is no genuine and sustained involvement. However, if an organization chooses not to undergo strategic planning it will generate opportunity costs. Failure to perform strategic planning will weaken the organization’s competitive advantage and overlook the opportunities for its stakeholders. Two of the most successful companies in their respective industries due to effective strategic management are the British Airways and Coca Cola. The British Airways was able to expand its market by adhering to rigid rules of strategic management. Likewise, Coca Cola took advantage of the benefits of strategic management by integrating it into their production, distribution, and promotion (Hill & Jones, 2009). The merging of Citicorp and Travelers Group in 1998 also exemplifies the advantages of strategic management in 21st century business world. The merger initiated the strategic transformation of the United States’ financial industry (Hill & Jones, 2009). Every organization is confronted with the difficulties and opportunities of strategic growths. Question 2: Corporate Social Responsibility Corporate social responsibility (CSR) is the accountability of a firm for the effects of its operations on the environment, its own wealth, and the larger society (Sims, 2003).