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The Strategic Management Process



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The strategic management processes has seven steps. The strategic management process begins by asking, “What business are we in?” Specifically, “What products do we sell, where do we sell them, and how do our products or services differ from our competitors’?”

The second step is to ask, “Are we in the right business given our strengths and weaknesses and the challenges that we face?” To answer this, managers “audit” or study both the firm’s environment and the firm’s internal strengths and weaknesses. Next, based on this analysis, the task in step 3 is to decide what should our new business be, in terms of what we sell, where we will sell it, and how our products or services differ from competitors’ products and services?

A vision statement is a general statement of the firm’s intended direction; it shows, in broad terms, “what we want to become.” Whereas the vision statement describes in broad terms what the business should be, the company’s mission statement summarizes what the company’s main tasks are today.
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Management
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