Business Environment and Strategic Managment Essay

Business Environment and Strategic Managment - Essay Example Indeed, after the completion of the installation process, the business strategy needs to be periodically monitored as of its performance (Harrison 2012). In this way, weaknesses and failures can be identified early so that major risks in regard to all business operations are avoided. According to Herzog (2010) the strategic management process can be also completed in just three phases: â€Å"a) situation assessment, b) strategy development and c) strategy implementation† (Herzog 2010, p.17). The development of the phases of strategic management process, as described above, is based on a series of tools, also known as strategic tools. The key role of these tools is to ensure that the decision-making process is adequately supported (Herzog 2010). Certain of these tools are quite popular. Reference can be made, for example, to SWOT analysis, PEST analysis, Porter’s Five Forces, Benchmarking, Forecasting and Financial Ratios (Herzog 2010). Each organization chooses the stra tegic tools that most respond to its needs taking into consideration the existing resources and the risks involved, both in the short and the long term (Hitt, Ireland and Hoskisson 2010). Also, the type of industry in which each firm operates is expected to influence the firm’s strategic management process, meaning also the strategic management tools that will be used for achieving the business objectives ((Daft, Kendrick and Vershinina 2010). The business model is another important criterion taken into account by strategic managers when having to choose the strategic tools employed in the achievement of business goals ((Daft, Kendrick and Vershinina 2010). Qatar Petroleum (QP) is the most powerful competitor in Qatar’s oil and gas sector; the company... This paper approves that the strategic management process incorporates a series of phases, aiming to help businesses to keep their value at high level. According to the literature, four are the most common phases of strategic management process: at a first level, the â€Å"vision and mission of the organization are reviewed† then, â€Å"the internal and external organizational environment needs to be analyzed† using the information retrieved through the research and the analysis developed in the previous two phases, the strategic manager proceeds to the identification of strategy that is most appropriate for supporting business goals, the â€Å"implementation of the chosen strategy† can be completed; at this level, the strategic management process should not be considered as terminated. Indeed, after the completion of the installation process, the business strategy needs to be periodically monitored as of its performance. This essay comes to the conclusion that strategic management tools can be used in both planning and evaluation of a company’s strategy or direction. According to Henry Mintzberg’s strategy can be defined as â€Å"a pattern in a stream of decisions†; based on the above definition it can be claimed that strategic tools can be effectively used for the evaluation of the performance and the strategic objectives of an organization. The specific approach to strategic management has been used in order to explore and evaluate the business strategy of Qatar Petroleum. Three widely used strategic tools have been employed: SWOT, PEST and benchmarking analyses.