Secret behind success

The strategic management is a process by which top management determines the long run direction and performance of the organisation by ensuring the careful formation proper implementation and continuous evaluation of strategy takes place. All organisations engage in strategic management process either formally or informally. Organizations that formally engage in it follow the same type of formalised process. An informal approach to strategy, however, does not mean that organisation does not know what it is doing. It simply means that organisation does not engage in any type of formalised process. The strategic management process has been divided into five major components, analysing the current status, examining the prospects for future, setting the future course, putting the strategy to use, evaluating and controlling the strategy. First, an organisation must analyse and clearly understand the current status. Once an organisation has a firm grip on the present status, it is a position to examine the prospects of future. After the prospect has been identified, the organisation must set its future course through careful evaluation and choice of alternatives. In the next stage, the organisation implements the chosen strategy. In the final stage, the organisation evaluates and controls the selected strategy. This process is never ending and requires constant evaluations, updating and revising the formation. Implementation and evaluation are of strategy of equal importance. Strategists encourage the involvement of employees in strategic formulation to avoid any conflicting situation in the strategic implementation stage. They consider internal and external factors such as strength weakness opportunities and implement swot analysis and other techniques. Unilever has adopted conglomerate diversification strategy and has successfully mitigated its financial and business rises by investing in unrelated products. This strategy refers to entering into a new line of business, which is not related to existing business either in terms of technology or market with a view to increase sales volume and also to balance the cycle sales fluctuations. Hence, well formulated strategic, thus, help survival and growth of business enterprises in the light of changing circumstances.

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