Elements of the Strategic Management Process

Elements of the Strategic Management Process Business organizations thrive on long term and short term strategic decisions which drive them to success. These cross functional managerial decisions are fundamental in determining a business organization’s strategic position and its ability to sustain itself in a competitively and dynamically changing environment.Advertising We will write a custom essay sample on Elements of the Strategic Management Process specifically for you for only $16.05 $11/page Learn More Therefore to formulate good business policies, a business manager needs to continuously assess the operational business environment to make strategic decisions in line with an organization’s planning and innovation processes. An Intelligent business executive continuously monitors the political environment in which a business organization operates to ensure potential risks associated with political uncertainties do not get into the way of an organization’s business operations. Ireland, Duane, and Hitt (23) assert that a business organization is likely to suffer heavy losses if a strategic decision made by its executives embodied in its strategic vision does not consider potentially dangerous situations like military invasions. Inconsistent industry regulations and requirements, time allotted for work for every employee or work week, intellectual property laws, legal requirements in making contracts, relationships with trade unions, and specific anti-trust laws can adversely affect a business’s sustainability and operations if such factors are not considered in making long term or short term strategic decisions I(reland, Duane Hitt, 56) Business organizations only thrive in economically stable environments which inspire the confidence for sustained profits. Such environments provide competently skilled manpower, stable currencies of host nations, sustained economic growth, sustained income, and stable inflation rates. When making long term strateg ic management decisions, managers need to identify and evaluate the characteristic type of the economic environment and controls in an economy when strategizing for the future. These ensure the safety and sustainability of an organization’s financial resources. Understanding the social environment enables managers to make strategic decisions in relation to the demographics of an organization’s market environment. Demographic factors determine how an organization designs its products to address the specific needs of a population.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Akbar (1) argues that this helps managers to make strategic plans for sustaining a business organization in today’s fiercely competitive environment. Long term strategies are fundamentally influenced by a market’s social class structures, innovation, cultural norms and values, and educational levels. Different social classes perceive different products differently. They also have different consumer behaviors. Products should be tailored to meet the needs and wants of different classes. Innovative managers make long term strategic decisions tailored to meet customer needs from different social classes while bearing in mind the need to make sustainable business decisions. That sustains a business organization in achieving its short term and long term goals and objectives in line with its strategic vision. According to Akbar (1), companies continuously innovate at every stage of their growth and evolution. When managers make long term decisions, new technological environment remain key factors in influencing such decisions. New technologies place organization at a strategically competitive position against its rivals in terms of innovation and efficient and effective utilization of resources. Effective managers find themselves compelled to consider the effect of these new technologies on cost framework. Costs are likely to go down drastically when new technologies which come with a range of benefits are considered in decision making. Organizations which remain static and do not adapt to new technologies find themselves loosing out to their rivals ho adapt to new technologies. Akbar, Michael. Elements of the Strategic Management Process. 2002-2010. Web. Ireland, R. Duane, Hoskisson Robert E., Hitt, Michael E. Understanding Business Strategy, 2e, South-Western, 2009.