Stages Of Strategic Management The strategic management process represents a logical, systematic, and

objectiveapproach for determining an enterprise's future direction. However, a clear separation isneeded between the managerial process by which an organization formulates, evaluates,implements, and controls the relationships between its objectives, its strategies, and its environment.Researchers usually distinguish three stages in the process of strategic management:strategy formulation,strategy implementation, and evaluation and control . Strategy Formulation Strategy formulation is the process of establishing the organization's mission, objectives,and choosing among alternative strategies. Sometimes strategy formulation is called" strategic planning ." Strategy Implementation Strategy implementation is the action stage of strategic management. It refers to decisions that are made to install new strategy or reinforce existing strategy. The basic strategy -implementation activities are establishing annual objectives, devising policies, and allocated resources. Strategy implementation also includes the making of decisions with regard to matching strategy and organizational structure; developing budgets, and motivational systems. Strategy Evaluation And Control The final stage in strategic management is strategy evaluation and control. All strategies are subject to future modification because internal and external factors are constantly changing. In the strategy evaluation and control process managers determine whether the chosen strategy is achieving the organization's objectives. The fundamental strategy evaluation and control activities are: reviewing internal and external factors that are the bases for current strategies, measuring performance, and taking corrective actions. Strategic Management Models Strategic management is a broader term that includes not only the stages already identified but also the earlier steps of determining the mission and objectives of an organization within the context of its external environment. The basic steps of the

strategic management can be examined through the use of strategic management model.The strategic management model identifies concepts of strategy and the elements necessary for development of a strategy enabling the organization to satisfy its mission.Historically, a number of frameworks and models have been advanced which propose

Types of strategies
Growth Strategies THERE ARE THREE MAIN TYPES OF GROWTH STRATEGIES

forward integration backward integration horizontal integration

forward integration|forward strategies|vertical strategies GAINING OWNERSHIP OR CONTROL OVER DISTRIBUTOR, WHOLE SELLER backward integration TO SEEK OVER OWNERSHIP OR CONTROL OVER FIRM SUPPLIER horizontal integration TO SEEK OWNERSHIP OR CONTROL OVER THE FIRM COMPETITOR intensive strategies THERE ARE THREE MAIN TYPES OF INTENSIVE STRATEGIES

market penetration market development product development

market penetration SEEK TO INCREASE MARKET SHARE OF PRESENT PRODUCT OR SERVICES IN THE PRESENT MARKET THROUGH GREATER MARKETING EFFORTS market development INTRODUCING PRESENT PRODUCT OR SERVICES IN NEW GEOGRAPHICAL AREA product development INCREASE THE SALES BY IMPROVING OR MODIFYING PRESENT PRODUCT OR SERVICES diversification strategies THERE ARE TWO MAIN TYPES OF DIVERSIFICATION STRATEGIES

related diversification strategies unrelated diversification strategies

related diversification strategies ADD NEW PRODUCTS OR SERVICES RELATED TO CURRENT BUSINESS unrelated diversification strategies ADD NEW PRODUCTS OR SERVICES UNRELATED TO CURRENT BUSINESS defensive strategies THERE ARE THREE MAIN TYPES OF DEFENSIVE STRATEGIES

retrenchment strategies diversification strategies liquidation strategy

retrenchment strategies IT OCCUR WHEN AN ORGANIZATION REGROUPS THROUGH COST OR ASSET DEDUCTION TO INCREASE THE REVENUE AFTER DECREASE CURRENT SALES OF PRODUCT OR SERVICES

diversification strategies A PART OF THE ORGANIZATION SOLD OUT TO RAISE THE CAPITAL

liquidation strategy IN THE LIQUIDATION ASSETS ARE SALE OUT OF THE BUSINESS FOR RAISING CAPITAL