Strategic Management ProcessStrategic decision making is done through the process of strategic management. Strategic management is a dynamic process. The four phases in the strategic management process of formulation, implementation and evaluation and control.

Strategic ControlThe first phase consists of establishing the strategic intent for the organization. Strategic intent is the hierarchy of objectives that an organization sets for itself. Within this, there are vision, mission, business definition and objectives. The aim of strategic management is to help the organization realise its strategic intent.The second phase of the formulation of strategies is concerned with the devising of a strategy or a few strategies. This phase is also called strategic planning. Essentially, this is an analytical phase in which strategist think, analyse and plan strategies. The third phase of implementation is the putting into action phase. The strategies that are formulated are implemented through a series of administrative and managerial actions.

The fourth and last phase of evaluation and control involves assessing how appropriately the strategies were formulated and how effectively they are being implemented. Depending on the outcome of assessment, actions could be taken ranging from fine-tuning implementation to a drastic reformulation of strategies. These four phases are considered to be sequentially linked to each other and each other and each successive phase provides a feedback to the previous phases. The feedback arising from each of the successive phases is meant to revise, reformulate or redefine the previous phases, if necessary. Such a representation yields a dynamic model of strategic management which takes into account the emerging factors as the process moves on.The strategic management formulation and implementation methods vary with product profile, Company profile, environment within and outside the Organization and various other factors. Large organizations which use sophisticated planning use detailed strategic management Models whereas smaller organizations where formality is low use simpler models. Small businesses concentrate on planning steps compared to larger companies in the same industry. Large firms have diverse products, operations, markets, and technologies and hence they have to essentially use complex systems. In spite of the fact that companies have different structures, systems, product profiles, etc., various components of models used for analysis of strategic management are quite similar. You must have observed that different thinkers have defined business strategy differently, yet there are some common elements in the way it is defined and understood. The strategic management consists of different phases, which are sequential in nature. These phases are linked to each other in a sequence as shown in

It may not be possible to draw a clear line of difference between each phase, and the change over from one phase to another is gradual. The next phase in the sequence may gradually evolve and merge into the following phase. An important linkage between the phases is established through a feedback mechanism or corrective action. The feedback mechanism results in a course of action for revising, reformulating, and redefining the past phase. The process is highly dynamic and compartmentalization of the process is difficult.Strategic management process that could be followed in a typical organization is presented in .The process takes place in the following stages:

1. The Strategic Planner has to define what is intended to be accomplished (not just desired). This will help in defining the objectives, strategies and policies.

2. In the light of stage I, the results of the current performance of the organization are documented.3. The Board of Directors and the top management will have to review the current performance of the documented.

4. In view of the review, the organization will have to scan the internal environment for strengths and weaknesses and the external environment for opportunities and threats.

5. The internal and external scan helps in selecting the strategic factors.

6. These have to be reviewed and redefined in relation to the Mission and Objectives.

7. At this stage a set of strategic alternatives and generated.

8. The best strategic alternative is selected and implemented through programmed budgets and procedures.

9. Monitoring, evaluation and review of the strategic alternative chosen is undertaken in this mode. This can provide a feedback on the changes in the implementation if required. As can be seen, this provides a rational approach to strategic decision making and it can be successfully practiced by Indian organizations, which now have to operate in a competitive environment.

Elements in strategic management process Each phase of the strategic management process consists of a number of elements, which are discrete and identifiable activities performed in logical and sequential steps. As many as twenty different elements could be identified in the models. All of the following activities are considered as parts of the strategic management process:i. Establishing the hierarchy of strategic intent:

1. Creating and communicating a vision

2. Designing a mission statement

3. Defining a business

4. Adopting the business model

5. Setting objectives

ii. Formulation of strategies:

6. Performing environmental appraisal

7. Doing organizational appraisal 8. Formulating corporate level strategies

9. Formulating business- level strategies

10. Undertaking strategic analysis

11. Exercising strategic choice

12. Preparing strategic plan

iii. Implementation of strategies 13. Activating strategies

14. Designing the structure, systems and processes

15. Managing behavioural implementation

16. Managing functional implementation

17. Operationalising strategiesiv. Performing Strategic evaluation and control

18. Performing strategic evaluation

19. Exercising strategic control

20. Reformulating strategies

Model of strategic management Process

Strategic Evaluation

Establishment of strategic intent

Formulation of strategies

Implementation of strategies