Three Core Areas of Strategic Management

Strategic management is the process of formulating and implementing strategies that help organizations achieve their goals and objectives. The three core areas of strategic management are:

1. Strategic Analysis: This is the first and most important stage of strategic management. It involves analyzing the internal and external environment of the organization to identify its strengths, weaknesses, opportunities, and threats. This analysis provides a basis for formulating strategies that can help the organization take advantage of its strengths, minimize its weaknesses, and exploit opportunities while managing threats.
2. Strategy Formulation: This involves developing strategies that align with the organization’s mission, vision, and goals. The strategies are based on the results of the strategic analysis and take into account the resources, capabilities, and competencies of the organization. The strategy formulation process involves making choices about the direction and scope of the organization’s activities, the industries and markets it will serve, and the resources it will allocate to achieve its objectives.
3. Strategy Implementation: Once the strategies have been developed, they need to be implemented effectively. This involves putting the plans into action by allocating resources, establishing policies and procedures, creating an organizational structure, and implementing programs and initiatives that support the strategies. Successful implementation requires effective leadership, communication, and monitoring to ensure that the organization is moving in the right direction and achieving its objectives.