1.2 Basic Model of Strategic Management

Strategic Management consists of four basic elements:

	Environmental scanning
	Strategy formulation
	Strategy implementation
	Evaluation and control

The terms are explained as follows:

	the monitoring, evaluating and disseminating of the information from the external and internal
	environments to key people within the corporation.
	Its purpose is to identify strategic factors- external and internal elements that will determine the future
	of the corporation.
	The simplest way to conduct environmental scanning is through SWOT Analysis.
	SWOT is an acronym used to describe the particular strengths, weaknesses, opportunities, and
	threats that are strategic factors for a specific company.

1.2 Basic Model of Strategic Management

	the development of long-range plans for the effective management of environmental opportunities
	and threats, in light of corporate strengths and weaknesses (SWOT).
	It includes defining the corporate mission, specifying achievable objectives, developing
	strategies, and setting policy guidelines.

	A process strategies and policies are put into action through the development of programs,
	budgets, and procedures.
	This process might involve changes within the overall culture, structure, and/or management system
	of the entire organization. Except when such drastic corporate wide changes are needed, however, the
	implementation of strategy is typically conducted by middle and lower-level managers, with review by
	top management. Sometimes referred to as operational planning, strategy implementation often
	involves day-to-day decisions in resource allocation.

1.2 Basic Model of Strategic Management

	Process in which corporate activities and performance results are monitored so that actual performance
	can be compared with desired performance.
	Managers at all levels use the resulting information to take corrective action and resolve problems.
	Although evaluation and control is the final major element of strategic management, it can also pinpoint
	weaknesses in previously implemented strategic plans and thus stimulate the entire process to
	begin again.