A strategic management process is used by many companies in contemporary business world to succeed in their long-term objectives and goals. Such business objectives are essential, because they help in meeting the expectations and demands of the stakeholders. Moreover, strategic management process is needed in a company, because it ensures that there is value-addition to the shareholders’ investments. This implies that gaining a competitive advantage forms an important element and becomes a major goal of the strategic management process.
Primary Components of a Strategic Management Process
The primary components of a strategic management process include strategic choices, strategic position and strategy translation into action. First, strategic position enables a company to acquaint itself with the external forces affecting the business operations. These external forces include social, political and legal dynamics that affect corporate governance and business operations overall. Second, strategic choice involves making decisions. Strategic choices are made when data collected and information gathered have been analyzed. The decision is made by the executive boards of the companies, once they have identified the most opportunistic areas to gain a competitive advantage. These areas can be the product/service, technology and price. The last component is transforming strategy into action, which is perceived to be successful in the strategic management process. In this stage, a company’s structure is designed to facilitate a successful implementation of a strategic plan. To this end, resources are properly allocated. Moreover, relationships between business components are well coordinated.
For example, BMW Company’s strategic implementation can be explored under its ability to use the modern and appropriate technology in manufacturing cars. As a result of technological application, the company produces the state-of-the-art cars that appeal to several potential users. Moreover, the company employs the finest and most updated engineering techniques in its manufacturing and most of the firm’s employees are highly skilled with relevant experience in car making. This is a strategic management process that the company uses for its car manufacturing, which has boosted its business operations, and thus improved the sales revenue.