MGT 498 Week 1 (750 Words Excluding Reference)

Running head: STRATEGIC PLANNING AND STRATEGIC MANAGEMENT1

STRATEGIC PLANNING AND STRATEGIC MANAGEMENT 5

Strategic Planning and Strategic ManagementStrategic Planning and Strategic ManagementAccording to Dryer, Godfrey, Jensen, & Bryce (2016) the strategic management process is “the process by which organizations formulate a plan and allocate resources to achieve competitive advantage that involves making four strategic choices: (1) markets to compete in; (2) unique value the firm will offer in those markets; (3) the resources and capabilities required to offer that unique value better than competitors; and (4) ways to sustain the advantage by preventing imitation” (p.7). Alongside these four key components is the internal and external analysis of the organization which is lead by the organization’s strategic manager.Describe and define the primary components of the Strategic Management Process.Just as stated above, there are four primary components to the strategic management process. The first is which market the organization desires to pursue with its product or service. By ensuring that their product maximizes the need of the targeted demographic, an organization can hone in on the pricing equilibrium as well as production to ensure the greatest potential for profits. Secondly, the organization must decide what value they bring to the demographic is question. By guaranteeing a need for their product or service within a targeted demographic, the organization can reap the benefits of a competitive landscape. The third component requires an analysis of necessary resources and capabilities. In this, an organization can decide what the price per unit of their product or service would be and determine if it meets the demographics budgetary needs. The last component involves an analysis of the “playing field” or current market like items or services. After addressing the demographic, conjuring a need for the desired demographic, and analyzing the resources and capabilities to better adjust the price per unit, the organization must review the currently existing competition and like items to meet or exceed the pricing equilibrium that will guarantee the greatest profit.Describe and define internal and external analysis.You cannot mention an internal and external analysis within a business course without bringing to the forefront the SWOTT analysis. It is at its essence the most utilized method for addressing internal strengths and weakness alongside external opportunities, threats, and more recently, trends. According to the article SWOTT Analysis, (2014), “SWOTT analysis is used in the early stages of strategic and marketing planning, in problem solving and decision making…” In the strategic management process, the SWOTT analysis is critical in defining the needs and highlights of strengths within the organization’s products or services as they relate to the targeted demographic.Describe and define the responsibilities and duties of the Strategic Manager.The strategic manager is no different than the premise of any other manager. The difference is only noted when addressing precisely what it is that the manger is managing. In this instance, the strategic manager is in charge of the organizations decision to expand or initiate a bid at a new targeted audience with a pre-existing or new product or service. Their role includes, but is not limited to a greater analysis of the demographic, geographic, economic, political, cultural, population, legal and regulatory forces that may hinder or expedite the potential for success. One of the greatest concepts that a strategic manager can grasp are the targeted demographic trends. As stated by Dryer, Godfrey, Jensen, & Bryce (2016), “Even though demographics often change slowly, they fundamentally reshape the landscape, so good strategic managers have a firm understanding of demographic trends.”Explain why companies need strategic management planning. Strategic planning is necessary for any organization to succeed. According to Bradley, (2016), “An important concept for business owners and managers to grasp, strategic management entails evaluating business goals, objectives and plans in light of your company focus on effectiveness and efficiency.” When addressing the need to expand or start up a new venture, strategic planning is crucial to the success of that venture for any organization.ConclusionThe strategic management process is a set concept that has exact cause and effects that are meant to eliminate weaknesses, highlight strengths, annotate trends and find the perfect fit for a product or service within a designated area. The success of this strategy relies heavily on the appointment and thorough nature of the appointed strategic manager. It is the strategic manager that conducts an internal and external analysis of the product or service and assures that they utilize the four primary components of the strategic management process to guarantee the maximum potential for success.ReferencesBradley, J. (2016). Why is strategic management needed. Retrieved from http://smallbusiness.chron.com/strategic-management-needed-61313.htmlDyer, J. H., Godfrey, P., Jensen, R., Bryce, D. Strategic Management: Concepts and Cases. [University of Phoenix]. Retrieved from https://phoenix.vitalsource.com/#/books/9781119134954/SWOTT Analysis. (2014). In Qatar Financial Center & Qatar Financial Center (Eds.), QFinance: The ultimate resource. London, UK: A&C Black. Retrieved from http://search.credoreference.com.contentproxy.phoenix.edu/content/entry/qfinance/SWOTT_analysis/0