Strategic Management Process

• The strategic management process is ways for businesses to build strategies that help the company respond quickly to new challenges.

• This dynamic process helps organizations find new and more efficient ways to do business.

STRATEGIC MANAGEMENT PROCESS

ESTABLISHMENT OF STRATEGIC

INTENTFORMULATION OF

STRATEGIES

IMPLEMENTATION OF STRATEGIES

SRATEGIC EVALUATION

STRATEGIC CONTROL

ESTABLISHING STRATEGIC INTENT:

VISION, MISSION, BUSINESS DEFINATION & OBJECTIVE

FORMULATION OF STRATEGIES:

ENVIRONMENTAL APPRAISAL

ORGANISATIONAL APPRAISAL

SWOT ANALYSIS

Corporate level strategies

Business level strategies

Strategic choice

Strategic plan

STARTEGY IMPLEMENTATION

•Project•Procedure•Resource allocation•Structural•Behavioral•Functional & Operational

STRATEGIC EVALUATION

STRATEGI

C

CONTROL

Vision

• What the future looks like.• Leading with inspiration and courage.• VISION creates that momentum of growing

anticipation about the future.• compelling picture of what’s coming next. • The excitement about the future trumps any

anxiety about the uncertain.

Mission• Mission is what you do best every day• managing with greatness and strength,

improving everything daily.• MISSION will feed into the confidence of

your organization by feeding this ever-present self-talk.

• Mission = HOW= how you are going to archive it.

• Vision = WHAT= What you need to achieve as we have seen that-

• Mission = How= How you are going to achieve it.

Elements of the Strategic Management Processa. Situation analysis,

b. Strategy formulation, c. Strategy implementation, &d. Strategy evaluation

• Situation analysis:- involves looking over the company’s external and internal environments and the context in which the company fits in those environments.

1. It begins with observing the company’s internal environment

2. investigating how employees interact with each other at all levels.

3. It is helpful to hold discussions, interviews and surveys to get a clearer picture of the current environment.

• To analyze the external environment, managers must look at the

1. Interactions between customers, 2. Suppliers, 3. Creditors, and 4. Competitors

• Situational analysis also requires to involve processes like

1. Financial planning, 2. Staffing, 3. Employee performance, 4. Customer retention, 5. Sales projections and 6. Many others.

Formulate a strategy:- This involves determining the company’s strengths to decide which strategies can be implemented.

1. Operational Strategies, 2. Competitive Strategies, or corporate

Strategies

depending on which part of the organization must implement them.

Strategy implementation: is the third step in the strategic management process.

1. Putting the formulated strategy into place.

Management processes will focus on methods and procedures designed to execute their strategies and the order in which strategies should be implemented.

• Strategy evaluation: the process comes full circle.

• This analysis is essentially the same as situational analysis, looking at the internal and external environments and the company’s context within them to determine if a plan should be reformulated.