Understanding the Strategic Management Process
Scanning the Environment
External Environment
Analysis of external factors affecting the organization
Includes economic, political, technological, and social factors
Helps to identify opportunities and threats
Internal Environment
Analysis of internal resources and capabilities
Includes financial, physical, human, and organizational resources
Helps to identify strengths and weaknesses
Developing Specific Strategies and Actions
Based on the results of the environmental scanning
Defining the organization’s goals and objectives
Developing the strategies and actions to achieve these goals
Scanning the Environment
External Environment
Analysis of external factors affecting the organization
Includes economic, political, technological, and social factors
Helps to identify opportunities and threats
Internal Environment
Analysis of internal resources and capabilities
Includes financial, physical, human, and organizational resources
Helps to identify strengths and weaknesses
Developing Specific Strategies and Actions
Based on the results of the environmental scanning
Defining the organization’s goals and objectives
Developing the strategies and actions to achieve these goals
