Define the strategic management process, identify the external and internal influences that affect strategic management, and describe how strategic management is applied in the hospitality industry.
Strategic management processes help management formulate plans for implementation with the purpose of achieving strategic competitiveness that can result in higher than average returns on investment. If a company has chosen a process that matches its environment and structure, the result is a tremendous positive effect on the company's performance. The company achieves strategic competitiveness when it can implement a value-creating strategy and one that is unique and not being duplicated by competing companies. If the strategy is unique, properly planned and implemented, and matches the needs of the environment, the company achieves sustainable competitive advantage. As long as it can maintain this competitive advantage it will earn above-average returns on investments and higher profits. Companies need to earn at least an average return on the investments of their investors in order to survive.
The process of strategic management usually undergoes through four steps: (1) Environmental scanning; (2) Strategy formulation; (3) Strategy implementation; (4) Strategy evaluation. During the environmental scanning procedure, information is being gathered, scrutinized and analyzed to produce the internal and external factors that affect the organization. This information is used for the planning of the strategic management process. When the company has analyzed the environmental factors, they formulate the appropriate strategy that can accomplish the goals and objectives of the organization. Once they have decided on the right strategy, they put it into action by designing the organization's structure, preparing the resources needed, managing their personnel and informing them about it, and develop how they make their decisions. Once implemented, there is a need to evaluate the effectiveness of the strategy by assessing the internal and external factors, measuring the ...
1,084 words; 3 references; strategic management process; external and internal influences that affect it and how it is applied in the hospitality industry; this is not APA formatted