Stages of Strategic Management
The strategic-management process consists of three stages:
• Strategy formulation
• Strategy implementation
• Strategy evaluation
Strategy Formulation
Vision defines where we are going.
Mission defines who we are and what we are doing.
Vision will be just a dream without mission.
And mission will be just a waste without a vision.
External Opportunities and Threats
Economy
Social
Cultural Factors
Demographic
Environmental
Political
Legal
Governmental
Technological Trends
Competitive Trends
Strategic management is all about gaining and maintaining competitive advantage.
Your organization has something that anyone does not have
Competitive Advantage
• Windows bought Nokia
• Smart bought Sun Cellular
• Smart bought Araneta Coliseum
• MOA Stadium
Internal Strengths and Weaknesses
• Management
• Marketing
• Finance/Accounting
• Production/Operations
• Research and Development
• Management Information Systems
People
Machines/ Equipment
Land and Buildings
Consumption of Energy
MATERIALS
Money
What will happen to our organization
if we cannot adapt?
Long – Term Objectives
It should be SMART
Difference between Objectives and Mission/Vision
• Objectives are different per department.
• Objectives are different per day and per year.
• Objectives are guided by the mission and vision.
• Objectives are usually from two to five years.
Alternative Strategies
Strategy Formulation includes:
• Developing a vision and mission
• Identifying an organization’s external opportunities
and threats
• Determining internal strengths and weaknesses
• Establishing long-term objectives
• Generating alternative strategies
Case Study
The six broadcast networks—ABC, CBS, Fox, NBC, UPN,
and WB—are being assaulted by cable channels, video
games, broadband, wireless technologies, satellite radio,
high-definition TV, and digital video recorders.
The three original broadcast networks captured about 90
percent of the prime-time audience in 1978, but today
their combined market share is less than 50 percent.
The strategic-management process consists of three stages:
• Strategy formulation
• Strategy implementation
• Strategy evaluation
The ACTION STAGE of Strategic Management
Implementing strategy
means mobilizing your
MACHINES,
EQUIPMENT,
MATERIALS, FACILITIES,
MONEY, and PEOPLE.
Often considered to be the MOST DIFFICULT STAGE in strategic management.
Strategy Implementation needs ABILITY and ATTITUDE.
The strategic-management process consists of three stages:
• Strategy formulation
• Strategy implementation
• Strategy evaluation
Strategy Evaluation
Because SUCCESS today is no guarantee of SUCCESS tomorrow!
Knowing
WHAT,
WHEN,
WHERE, and
WHY particular
strategies are
not working
well.
All strategies are subject to future modification
because EXTERNAL AND INTERNAL FACTORS
are CONSTANTLY CHANGING.
Stages in Strategic Management
Stages in Strategic Management
• Where are we now?
• Where do we want to go?
• How are we going to get there?
Benefits of Strategic Management
Strategic management allows an
organization to be more proactive
than reactive in shaping
its own future.
To help organizations formulate
better strategies through the use of a
more systematic, logical, and rational
approach to strategic choice.
Seventeen Guidelines for
the Strategic-Planning
Process to Be Effective
It should be a people process more than a paper process.
It should be a learning process for all managers and employees.
It should be words supported by numbers rather than numbers supported by words.
It should be simple and non-routine.
It should vary assignments, team memberships, meeting formats, and even the planning calendar.
It should
challenge the
assumptions
underlying the
current
corporate
strategy.
It should welcome bad news.
It should welcome
open-mindedness
and a spirit of
inquiry and
learning.
It should not be a bureaucratic mechanism.
It should not
become
ritualistic,
stilted, or
orchestrated.
It should not be too formal, predictable, or rigid.
It should not contain jargon or
arcane planning language.
It should
not be a
formal
system for
control.
It should not disregard qualitative
information.
It should not be
controlled by
“technicians.”
Do not pursue too many strategies at once.
Continually
strengthen
the “good
ethics is good
business”
policy.