Strategic management process

STRATEGIC MANAGEMENT PROCESS

JERLY AKKU CHERIANMACFAST

“Process of formulation, implementation,

evaluation and control of strategies to realise the organisation's strategic intent.”

The strategic management process encompasses three phases, which together involve a number of systematic steps.

1.Strategy formulation

2.Implementation

3.Evaluation & control.

FORMATION OF MISSION & OBJECTIVES

SWOT ANALYSIS CONSIDERATION OF

STRATEGIC ALTERNATIVES

EVALUATION AND CONTROL

IMPLEMENTATION CHOICE OF STRATEGY

STRATEGIC MANAGEMENT PROCESS

STRATEGIC FORMULATION

Strategic formation involves four important steps which are,

1. Determination of mission and objectives

2. Analysis of strengths and weakness of the firm

3. Environmental opportunities and threats

4. Generation of alternatives strategies and choosing the most appropriate strategies.

1.DETERMINATION OF MISSION AND OBJECTIVES

• Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables an organization to achieve its objectives.

• In short, strategy is a means to achieve the objectives. It is, therefore, quite obvious that determine the mission and objectives, is the first step in the strategic formation.

• The mission defines the board social purpose and scope of the organization whereas objectives more specifically define the direction to achieve the mission

• Objectives help translate the organization mission into results while objectives may be generic in their expression, goals sets specific targets to be achieved with in a time frame.

2.SWOT ANALYSIS

• In strategic management, the term strategic is used to mean “pertaining to the relation between the firm and its environment” this indicates the role of SWOT in strategic management.

• In strategic management the strength and weakness of the firm and opportunities and threats in the environment will indicate the portfolio strategy and other strategies it should pursue.

3.STRATEGIC ALTERNATIVES

Given the mission and objectives and having analyzed the strength and weakness of the firm and environmental opportunities and threats. This strategies should proceed to generate possible alternatives strategies. There may be different strategies options for accomplishing a particular objectives.

4.EVALUATION AND CHOICE

• The purpose of considering different strategic options is to adopt the most appropriate strategy. This necessitates the evaluation of strategic alternatives with reference to certain criteria.

• Criteria such as suitability, feasibility and acceptability are commonly employed to evaluate the strategic options.

5.IMPLEMENTATION

• Operationalsing the strategy requires transcending the various components of strategy to different levels, mobilization and allocation of resource, structuring authority, responsibility, task and information follows, and establishing polices.

• Implementation of strategy involves a number of administrative and operational decisions.

6.EVALUATION AND CONTROL

• Evaluation and control is the last phase of the strategic management process. The objective is to examine whether the strategy as implemented is meeting its objectives and if not to take corrective measures.

• Continuous monitoring of the environment and implementation of the strategy is essential.

FORMATION OF MISSION & OBJECTIVES

SWOT ANALYSIS CONSIDERATION OF

STRATEGIC ALTERNATIVES

EVALUATION AND CONTROL

IMPLEMENTATION CHOICE OF STRATEGY

STRATEGIC MANAGEMENT PROCESS

BENEFITS AND RELEVANCE OF STRATEGIC MANAGEMENT

1. strategic management helps to envision an organization’s future, formulate mission and make objectives clear.

2. Strategic management makes the management dynamic, appropriate to the environment and future oriented.

3. It make people realize what are they working for, what is expected of each SBU, division, functional department and, to some extend, individuals.

4. Strategic management facilitates better delegation, organization monitoring, performance evaluation and control.

5. Strategic management would enable a company to meet compensation more effectively.

LIMITATIONS

1. Strategic management is a means to achieve the mission and objectives of the organization. Hence any lack of realism or other limitation of the mission or objectives would naturally get reflected in the strategy.

2. Another problem is that strategic planning is a complex and difficult task which requires people with vision, expertise and commitment and appropriate system.

3. An important limitation of strategic management is

that if the implementation of strategy is not effective, even an excellent strategy would not produce expected result

THANK YOU