Strategic Management Process

The Strategic Management Process, also known as S.M.P, is considered to be the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
Overview
Wheelen and Hunger describe that this process can be explained by a combination of managerial decisions and actions that determines the long-run performance of an organization. The study of the S.M.P. or strategic management process emphasizes the monitoring and evaluation of external opportunities and threats in light of an organization’s strengths and weaknesses
A-S-P Model Explanation
The A.S. P model is a detailed structure about the process of planning and integrating a strategyto manange an organization. First there should be an analysis about the external environment and the internal organization in order to constitute de mission and vision of an organization. When those two components, mission and vision, are established, the strategy has to be formulated by the business and corporate level within the comparison between the competitive rivalry and the competitive dynamics. In the same way, corporate governance, organizational structure and controls are linked to coordinate de strategy implementation process by implementing leadership and entrepreneurship strategies. At the end, the whole joint of those components play as the performance of structured strategic competitiveness which leads the company to obtain above-average returns.
Diagram of the A-S-P model
Stages of the Process
The strategic management process is a philosophical approach to business. It means that the strategy has to be understood by every member of the organization in order to apply it. Indeed, there are five strategic management process stages that should be followed in order to exercise effectively this process. These are: goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.
1. Goal Setting
This stage is useful to clarify the vision of an organization. The goal setting stage starts by identifying three key features: define short- and long-term objectives, identify the process of how to accomplish your objective and finally customize the process for the staff of the organization by giving them a specific task. At the end of this stage, it is necessary to establish a mission statement that transmits the goals previously analyzed to shareholders and staff.
2. Analysis
This stage is a key to define the next two stages because an analysis gather information and data relevant to reach the vision previously established.  The analysis has to start by settling the organization needs (strengths and weaknesses and threats and opportunities) and the direction it should take to start initiatives and grow. At this stage the organization has to consider external and internal issues that can affect goals and objectives.
3. Strategy Formulation
After completing the analysis step, strategy formulation is the next trail to review the information gathered at the analysis. It provides the report about resources and how the organization aims to find external resources. In addition, it is essential to prioritize the way the company faces issues such as economic situations and how the plan integrates contingencies to reach the target.
Financial Benefits
Organizations that apply strategic management processes are more profitable and successful due to the fact that those organizations take advantage of all resources. It is less possible for those companies to have losses during their performance because they already planned short and long term consequences and evaluated carefully evaluations of risks and priorities. In fact, these organizations have control of the future.
Non-Financial Benefits
Strategic Management Processes decreases external threats due to the contingency plans those implemented. In addition, employee productivity increases as workers are aware of the competitor strengths and weaknesses. As a whole, employees understand the link between performance and rewards. Indeed, internal and external processes are bettered and performance increases with the application of strategic management processes.

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