Environment factors to achieve strategic objectives in companies

Abstract

Strategic management begins with an evaluation of the organization’s mission, goals, and strategy. This is followed by situation analysis (sometimes called SWOT analysis) which examines opportunities and threats in the external environment as well as strengths and weaknesses within the organization. Situation analysis leads to the formulation of explicit strategic plans, which then must be implemented. This planning usually takes place in for-profit business organizations and pertains to competitive actions on the market. Although some companies hire strategic planning experts, the responsibility for strategic planning rests with line managers. Seniors executives of companies want middle and lower-level line managers to think strategically. Strategic thinking means to take the long-term view and to see the big picture, including the organization and the competitive environment and consider how they fit together. Understanding the strategy concept, the levels of strategy, and strategy formulations versus implementation is an important start towards strategic thinking.