Framework

Strategic management process

The question it answers

When drawing up the annual plan, how should a leadership team move from scanning the environment to formulating, implementing and controlling strategy to decide where resources go?

Origin
Wheelen & Hunger, 2012; Dess et al., 2016
Diagram type
Cycle
Level of analysis
Firm
Topics
Strategy & leadership
Chess knight on a glass compass, icon for strategy and leadership

Diagram

Strategic management process

  1. Scan the environmentScan the external environment and internal capabilities to see what is changing and where the firm is strong or weak.
  2. Formulate strategySet mission, objectives and direction at corporate, business and functional levels.
  3. ImplementTurn choices into programmes, budgets and procedures.
  4. Evaluate and controlCompare results with objectives and feed the lessons back into the next scan.

Pitfalls

Pitfall

Drawing it as a straight line. In practice the stages overlap and the feedback loop is the point.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Dess, G.G., McNamara, G. and Eisner, A.B. (2016) Strategic management: text and cases. New York: McGraw-Hill Education.No DOISource page
  2. Wheelen, T.L. and Hunger, J.D. (2012) Strategic management and business policy: toward global sustainability. Upper Saddle River, NJ: Pearson Prentice Hall.No DOISource page