THE BASIC STEPS OF the STRATEGIC MANAGEMENT PROCESS INCLUDE:

• Conducting an environmental review;

• Establishment of an organizational guideline;

• Formulation of an organizational strategy;

• Implementation of the organizational strategy; and

• Exercise of strategic control.

Execution of an internal and external environment analysis of the organization

Environmental analysis refers to the examination of environmental conditions and variables, their
current and future perspectives, constraints and constraints, challenges and contingencies,
opportunities and perceived gaps in the context in which the organization is inserted. It means
mapping the environment macro and the enterprise task environment.

Environmental analysis takes into account what exists in terms of viable possibilities and risks that
surround the organization and points out how it could better serve society in a highly competitive and
constantly changing context.

The environmental analysis should focus on the components of the micro-environment, that is, its task
environment, such as customers, suppliers and competitors, and the main factors of the macro
environment, such as economic, social, technological, cultural, legal, political, demographic and
ecological.

Organizational analysis (internal organizational environment) is also relevant and refers to the
examination of current and future organizational conditions, available and necessary resources
(including technology), strengths and weaknesses, strengths and weaknesses, organizational structure,
skills and competencies .
In fact, organizational analysis seeks to locate the critical success factors of the organization.

The strategy seeks to interweave organizational factors with environmental factors, aiming at better
articulating the organization's efforts and resources towards results that ensure the achievement of
objectives.

An important finding is that the variables of the external environment (macro and micro) are
uncontrollable, that is, they do not depend on the company.

It has to adopt a reaction to the changes, or, if it has a more advanced level of strategic insight, to
precede these changes of the environment to fit in and not be caught by surprise when the changes
happen.

Already the internal environment is controllable, are the capabilities and resources that the company
needs to manage.

Leadership is about the relationship - cemented through encounters “in the moment” whether face to
face or in live conference calls 1:1 or as a team.

Strategic Management is about nuts and bolts - Plan Do Study Act

Putting a strategic plan into operation with daily tactical actions

It is possible to do one without the other, but much less successful.