Strategic management process has three really important or central parts - strategy analysis, strategy formulation and strategy implementation. However, it has been seen that in the business organizations of today there is no successive way in which this process is followed. There are various business related and political factors that are important in this regard and these make the general assumptions regarding this system almost invalid.
Important Parts of Strategic Management Process
The most important aspects of a strategic management process are analysis, actions and the decisions. These could also be termed as being central to the entire process. These three processes are also known as strategy analysis, strategy implementation and strategy formulation.
However, as far as application is concerned these three concepts can be said to be dependent on each other. In the context of the business world it has been observed that these concepts are not always exercised in a serial manner.
Explanation of Strategic Management Process
According to the prominent management scholars there is a certain amount of linearity in the strategic management process. For example as per the argument that has been put forward by Henry Mintzberg of McGill University it would be wrong to say that the concept of analysis comes first and after that come the decisions and consequently they are implemented.
He feels that such assumptions are inconclusive, as they do not really provide any substantial explanation of the entire process or any direction as to how the process should be implemented. According to Mintzberg the business environment is not exactly predictable and this affects proper analysis of the strategic management process.
Strategic Management Process and Business Realities
It is observed that the organizational predicament in most of the present day businesses leads them to take decisions according to the need of the hour. There are also political situations that at times have an effect on the business decisions that are taken by the companies.