The Business World

The strategic process is a very important concept in the business world and it helps show companies what is working and what may not be working. There are four parts in this process and each part plays a pivotal rule: Environmental scanning, strategy formulation, strategy implementation, and evaluation. This process is very similar to a cooking recipe because each part helps the other and without one the end result will be inaccurate. Many companies use this strategy and Johnson & Johnson does as well. They follow this process and they do it by organizing local management to focus on their area because they are the ones that know the area best, but they still have one management team to make overall all decisions for the company as a whole.

Environmental scanning can be defined as "the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market" (Wheelen, T. L., & Hunger, J. D. (2008). Strategy formulation "is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies based on the scanning" (Wheelen, T. L., & Hunger, J. D. (2008). Strategy implementation implies making the strategy work as intended or putting the organization's chosen strategy into action. Strategy implementation "includes designing the organization's structure, distributing resources, developing decision making process, and managing human resources" (Wheelen, T. L., & Hunger, J. D. (2008). The final step in the process is the evaluation of the process and this is done by "monitoring and evaluating the results to see if they reached the level of expectancy" (Wheelen, T. L., & Hunger, J. D. (2008). A strategic management process is necessary because this process helps a company focus on what direction they need to take for their company's success. Once the steps they have set forth they then use this process to evaluate their success so that they can fix problem area's or continue on the parts that were successful for them.

Johnson & Johnson is one of the biggest health care facilities in the world and have been so for many years. They are one of many companies that use the strategic management process