Importance of Strategic thinking and formulation in the organisational Essay

Importance of Strategic thinking and formulation in the organisational change - Essay Example There are many stages involved in the process of the strategic management. These steps are divided in to three broad categories: 1) Strategy formulation 2) Strategy implementation 3) Strategy evaluation The first step namely the strategy formulation involves the development of the business mission, evaluation of the opportunities and threats faced by the business organisation in the business, by using tools such as SWOT analysis, examining the strengths and weaknesses of the business, determining the long term objectives of the business and designing the new strategies to eke in the process of achieving the new targets. It also include the processes to determine the investment direction, the business markets to be addressed, extension of the operations of the business, limitations faced by the business in order to undertake the business activities.... d the marketing efforts, planning the financial issues, alignment of the information system with the information needs of the employees and last but not least provisions of appraisals and rewards to the employees. The strategy implementation stage requires several actions to be taken by the management in order to get the most of it. The successful implementation of a strategy is directly related to the ability of a manger to motivate employees in the strategic direction and to develop an organisational culture to adopt the change and take it into the daily business practise. It also demands some crucial steps by the managers on personal level. The manger should depict different qualities such as discipline, high level of commitment and motivation, leadership and enthusiasm of making things possible. Successful implementation of strategy is very important. This is the most crucial step in the whole process since it involves many factors besides the ability of manger. This includes the adoption of change by the employees, their commitment levels, and the enthusiasm towards their jobs. Most often the business organisations fail to achieve their desired targets since they fail to implement their s trategies in a successful manner or fail to get support from their employees. The final stage is the strategy evaluation. After the implementation it is important for the managers to test the effectiveness of the strategy. The strategy of a company requires constant updating. With the changing conditions of market and industry it is important for an organisation to keep its strategy in tact with the changing environment. An out dated strategy cannot fulfil the needs of today's global environment. In order to go through the updating process the organisations should carry on