Strategic Management Process is not only a set of rule that is required to be followed in sequence but also about embracing a philosophical approach towards undertaking business actions. An organizational management strategically envisions the business objectives and defines goals. A strategic management process is considered to be effective if it is perfectly aligned with the core business strategy (Clayton, 2015). Three key components of Strategic Management Process (SMP) are Analysis, Strategic Actions, and Performance that are also collectively called ASP model of SMP.
Analysis: At this stage, all the information gathered is getting refined, assembled, and shaped for the next stages. This stage provides strategic direction and helps in identifying necessary initiatives.
Strategic Actions: This stage is comprised of two major tasks i.e. Strategy Formulation & Strategy Implementation. This is the most important and critical stage for the success of the business venture as it involves all the significant tasks ranging from planning, formulation, resource estimation & allocation, allocation of duties & responsibilities, funding, prioritizing, and overall execution. It is also the most significant as it involves both formulation and implementation, and both are critical and interdependent on each other. Therefore, insufficiency in any of them may result in strategic failure.
Performance: This stage involves control and evaluation action, which involves performance procedures and measures, process reviews, and corrective actions (Clayton, 2015).
Strategic Competitiveness refers to the outcomes that are achieved by a firm when it formulates and implements any value-creating strategy effectively and successfully, which cannot be counterfeited or reproduced by its business rivals. The implementation of the value-creating strategy that is inept or costly to be copied by the competitors helps the firm to achieve competitive advantage (Clayton, 2015).
The value-creating strategy of PepsiCo is comprised of six major principles and components. Firstly, it focuses on achieving expansion and growth through acquisitions and mergers. Secondly, it focuses on forming profitable strategic alliance globally. Thirdly, it focuses on targeting emerging markets, and finally, it focuses on developing and fostering its organizational cultures. It further focuses on promoting its distinctive idea of ‘One PepsiCo’, which aims at sharing infrastructure, supply chain and operational cost for numerous brands within its product portfolio. Lastly, it focuses on innovating its marketing initiatives, which involve understanding differences among markets and cultures (Dudovskiy, 2016).
References
Clayton. J. (2015). The Five Stages of the Strategic Management Process. Retrieved From http://smallbusiness.chron.com/five-stages-strategic-management-process-18785.html on January 11, 2017
Dudovskiy. J. (2016). PepsiCo Business Strategy and Competitive Advantage. Retrieved From http://research-methodology.net/pepsico-analysis-of-corporate-strategy/ on January 11, 2017
