Stages of Strategic Management Process

   As strategic management is a large, complex, and ever-evolving endeavor, it is useful to divide it into a series of concrete steps to illustrate the process of strategic management. While many management models pertaining to strategy derivation are in use, most general frameworks include 3 main stages.

 There are three stages of strategic management process which are as follow:

       1. Strategy Formulation

       2. Strategy Implementation

       3. Strategy Evaluation                                                                                                                                                                                                                                                                  Each one is discussed below                              

       1. Strategic Formulation:

         The stages of strategic management process start with the strategic implementation. Business activities are executed by the formulation of strategy which is referred to as strategy formulation. Following elements are developed in the strategy formulation stage.

       Vision & Mission: Include the target of the business 

       Strengths & Weaknesses: Strong & weak points of business

       Opportunities & Threats: Associated with the external business environment                 

        Besides the above elements, long term goals & objectives are also set in the strategy formulation.Alternative Strategies are generated to accomplish long term goals & particular strategy is selected to be pursued
       
          Following are some of important considerations that should be followed for best strategy formulation.

• Resources allocation
• Business to enter or maintain
• Mergers or joint ventures
• Business to liquidate or divest
• Entering in the foreign markets
• Business expansion
• Resistance of take over

2. Strategy Implementation:

          Strategy implementation is the second stage of strategic management process, annual objectives are established along with the devising of policies. Moreover the employees of the organization are motivated & resources are allocated in order to execute formulated strategies. Strategy implementation further includes the following.

• Development of culture that is supportive to the strategy
• Development of potential organizational culture
• Re-direction of the efforts of marketing
• Preparation of budgets
• Preparation & usage of information
• Connecting compensation of employees with the organizational performance

           The stage of strategy implementation is also referred to as action stage of strategic management. In fact the managers & employees are mobilized in implementing phase so that the formulated strategies are put into some action. Strategy implementation stage is the most difficult stage among all other stages of strategic management. Personnel discipline, sacrifice & commitment are required in this stage of strategy implementation. The strategy that is formulated but not implemented lacks any useful purpose. Strategy implementation is considered as utmost important in the stages of strategic management process.

        3.Strategy Evaluation:

          Strategy evaluation is the last step of the stages of strategic management process.   The final stage of the strategic management process is the strategy evaluation. It is the duty of the managers to have sufficient know-how about the problems and improper working of strategies. This task of the management is better accomplished through strategy evaluation which provides needful information to the managers in this regard. Moreover forces of external & internal environment changes with the passage of time therefore all the strategies also require modifications.