The strategic management process means defining the organizations strategy.

It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises its competitors; and fixes goals to meet all the present and future competitors and then reassesses each strategy. Strategic management process has following four steps: 1. Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it.

2.

Strategy Formulation- 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. Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organizations chosen strategy into action. Strategy implementation includes designing the organizations structure, distributing resources, developing decision making process, and managing human resources.

3.

4.

Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activitie are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial corrective actions. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizat iona objectives.

These components are steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situations requirement, so as to make essential changes .

Components of Strategic Management Process Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with the other components and that this interaction often happens in chorus.

Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management.

First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and

external environment of the organization.

Business process integration

Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. The key supply [13] chain processes stated by Lambert (2004) are: Customer relationship management Customer service management Demand management style Order fulfillment Manufacturing flow management Supplier relationship management Product development and commercialization Returns management

Much has been written about demand management. Best-in-Class companies have similar characteristics, which include the following: a) Internal and external collaboration b) Lead time reduction initiatives c) Tighter feedback from customer and market demand d) Customer level forecasting One could suggest other key critical supply business processes which combine these processes stated by Lambert such as: a. Customer service management b. Procurement c. Product development and commercialization d. Manufacturing flow management/support e. Physical distribution f. Outsourcing/partnerships g. Performance measurement h. Warehousing management a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships:

determine mutually satisfying goals for organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers

b) Procurement process Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship where both parties benefit, and a reduction in time required for the design cycle and product development. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkage to convey possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling and quality assurance, many of which include the responsibility to coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new sources or programs. c) Product development and commercialization Here, customers and suppliers must be integrated into the product development process in order to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched with ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must: 1. coordinate with customer relationship management to identify customer-articulated needs; 2. select materials and suppliers in conjunction with procurement, and 3. develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. d) Manufacturing flow management process The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency in meeting customer demand. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. e) Physical distribution This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g., links manufacturers, wholesalers, retailers). f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage, and

outsource everything else. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally, with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. Taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can both be correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts, internal measures are generally collected and analyzed by the firm including 1. Cost 2. Customer Service 3. Productivity measures 4. Asset measurement, and 5. Quality. External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) customer perception measurement, and 2) best practice benchmarking. h) Warehousing management As a case of reducing company cost & expenses, warehousing management is carrying the valuable role against operations. In case of perfect storing & office with all convenient facilities in company level, reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system etc.

Porters five forces

Competitive Rivalry Bargaining Power of Customer Bargaining Power of Supplier Threat of Substitutes Threat of New Entrants
Ans 3 ))

Competition is stiff and at a local level End user has limited bargaining power Enjoy a relatively commanding bargaining power No real threat Virtually no entry barriers

Objectives of Production Function 1. To produce goods and services as per the estimated manufacturing cost and minimum inputs of resources. 2. To produce right quality goods and services as per the established standards and specifications. 3. To produce goods and services as per the decided time schedule. 4. Minimize the use of resources to the optimum level. These are 4 M's :- like Machinery, Materials, Manpower and Money. These inputs are to be used to full extent to result minimum cost, quality and time.

5. Maximize the utilization of manpower. 6. Minimizing the total cost of production with continuous elimination of non-value added activities and improwing labour productivity on the production shop floor.

Production Management Objectives, Performance, Priorities, and Training and Development Plans t is common knowledge that every one of the successful companies today sought and found a precise understanding of how it could create advantage in the operations system and delivery options of the business organization in order to address detailed customer specifications. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfill the needs of each kind of customer in their target markets. In today's fast and technological modern world, the challenge that the Information Man faces is time's nature of putting things in order and in place in the best and most effective way. Life has changed since the invention of the computer which dictated man to deal with things in the most efficient way possible. In the world of big international business industries where transactions and other business operations are governed by law, cultural differences and mutual trust, efficiency counts largely as a common entrepreneurial aim. Performance Goals Performance management is an important process for influencing both the extrinsic and intrinsic motivations of employees, that is, increasing employees' perceptions and understanding of job tasks and subsequently their job satisfaction. For example, elements of performance management may provide the employee with a more accurate understanding of job tasks (task identity and task significance) through objective setting, leading to a clear sense of direction. Performance management also serves to focus employee efforts and attention on critical tasks through the use of performance feedback, which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. In addition, where employees desire jobs that allow them to make good use of their skills and talents, performance management increases job task "fit" (skill variety) through the identification of training and development needs that are consistent with individual and organizational goals. This can be attributed to human resource specialists, academics, and consultants who proclaim that performance management is a critically needed tool for effective human resource management (1984). This, in turn, is based on the belief that an effectively designed, implemented, and administered performance management system can provide the organization, the manager, and the employee a myriad of benefits (1987). The literature on performance management generally suggests that the management process can increase employee motivation and productivity, provide a solid basis for wage and salary administration, facilitate discussions concerning employee growth and development, provide data for human resource decisions, and provide managers with a useful communication tool for employee goal setting and performance planning (1989). More often than not, leaders plunge into a long-term strategic planning process without first deliberating on certain fundamental questions related to beliefs and values. These questions are often about the core ideology, values, purpose, envisioned future, vision statement and vivid description of what the business would look like. Reaching a common understanding about the inherent beliefs in the organization provides a platform for further explorations on the norms of behavior that help define the organization's culture. This exploration can also help reveal the impact that the organization's structure (system) has on behaviors. By the nature of systems, structure involves how people make decisions-the operating values whereby people translate perceptions, goals rules and norms into actions. People often focus only on their own decisions and ignore how their decisions affect others. Frequently, when an organization is faced with moderate threat or opportunity, people began to replace old behavioral patterns with new ways of thinking and behaving. There are several enduring issues relative to performance management system implementation. They include the controversy over combining developmental and administrative purposes, the absence of rater training, the lack of organizational commitment and top-level support, ubiquitous

rating errors, employee dissatisfaction with the amount of performance feedback received, and the absence of specific performance documentation, among others. Included are several emerging implementation issues related to the need for increasing the sources of performance information and problems raised by inadequate literacy levels. Along with the considerations discussed above, the following are the general process I normally utilize in the organization in order to establish my personal goals within a month. 1. Identification of monthly production target in terms of product volume, product testing, and product quality assurance, 2. Coordinating the volume of orders into the specified deadline of clients and customers, 3. Communicating product volume and specifics to the members of the production teams, 4. Assessment and evaluation of inherent and inevitable shortcomings in the production process (product, technology, and people), and 5. Stocking, warehousing, inventory and delivery options and other supply management considerations of finished goods Generally, these monthly goals and processes ensure that the organization, particularly the production arm of the company can readily attend to the commitments of the organization in order to maintain the satisfaction and loyalty of our customers. Moreover, these production goals and objectives serve as motivation to every individual staff and employee in the production department of the organization. Work Plans Organizations are neither the rational, harmonious entities celebrated in managerial theory nor the arenas of apocalyptic class conflict projected by Marxists (1980). Hardy and Clegg (1996) believe that modern organizations passed by the guild structures and as organizations grew larger, skills become increasingly fragmented and specialized and positions become more functionally differentiated. Leavitt had defined three approaches to organization, which includes structure, technology and people (1964). New formal guidelines and procedures like organization chart, budgeting methods, rules and regulations can also be structural approaches on inducing change. On the other hand, rearrangements in work flow through new physical layouts, work methods, job descriptions and work standards can be done as technological approaches. Some organizations stress on people approaches which includes alterations in attitudes, motivation and behavioral skills. This can be done through new training programs, selection procedures, and performance appraisal schemes. Planning is commonly known as the process of formulating in advance as organized behaviour action. While it is true that people do not always plan their actions, it is inherent for any organizations to plan. However, whether dealing with the context by which planning is occurring, whether on the individual or organizational level, the process takes shape according to the prevailing attitudes, beliefs and goals involved. Planning also bears different meaning to different social groups. Any commercial, entrepreneurial, private as well as public organizations and institutions who has a financial arm to manage the funds of the group, is faced with the objective of maximizing the shareholder wealth and not the profit as was stated in the theory of financial management. The business, in order to effectively execute any business strategy or plan, should be able to determine first and identify the resources that are available in the company. Studying and examining the opportunities of the available resources will help in constructing a business plan which will be profitable. The characteristics of the business should be clearly laid out and the ideas that will be made available should be thoroughly researched. This will provide relevant information that the general management can utilize so as to be able to allocate the funds of the company in the most effective way. In an area of my work where the focus is of managing the integrity of the business, business control should be its very objective. Business control is crucial to maintaining business integrity especially when the business is developing and growing. Thus, its needs and demands equal efficiency and effectiveness on managing the business. In addition, to maintain business' efficiency and effectiveness, it is important to develop and implement appropriate business controls through an assurance process based on a publish statement of compliance with relevant laws and business principles. Implementation of statement compliance will help to develop and manage key business risks. My duties under the control systems operation involves lowering the company's stock level,

minimizing purchase of goods from other agents, ensuring that the purchased products will be sold, making accurate forecasts of demands, and maximizing the profit of the company. These are made possible by categorizing the purchased products into three classifications: (a) regular forecast demands, (b) additional allocation or back to back order, and (c) orders to other agents or suppliers. All, these are executed while keeping in mind the available selling plans that were constructed and stock status of each item. Management and sales reports are prepared daily, weekly, monthly, quarterly and annually in order to keep track on the flow of goods and services rendered by the company. Such reports are utilized to analyze and investigate on the demand of the products that should tally with the records provided by the other company departments so as to decide and make necessary actions on the needs and conditions of the business industry particularly the demands of the clients. These reports likewise present the performance of the people housed by the company. Adjustments of stocks are made using the computer system to coordinate the products available for resale and that of the forecasted volume of goods that needs to be ordered to supply the customers. Other responsibilities include updates of records, cancellation of P/O balance, evaluation of the distributors system, selling and purchasing deals with agents as well as cost adjustments. For effective and efficient monitoring and control system of the business operations and transactions, sales exp report are provided regularly along with the staff's discrepancy report and analysis which presents the difference between the forecast report and the actual record. This process enables the management to device plans of how to lower the stock level by selling the surplus in which the recommendations and suggestions from the Sales Administration Department. In line with this need, I prepare reports that will provide solutions on liquidating and managing the surplus available. The sales representatives are then required to act accordingly in order to clear the stock of surplus. In cases of negative profit, I am tasked to prepare reports that will explain and support the reasons that led to such incidents which are approved and signed by the General Manager. The regular reports and sales analysis are constantly examined so as to adjust the business strategies for the succeeding business transactions. Along with the duties and responsibilities assigned to me, I have been able to put up with the expected performance of my position in the business organization. In line with these tasks, I was able to meet the performance standards set by the company through the following evidences: I was able to design as well as modify the existing report format of our computer system which made it possible for us to utilize the functions more effectively and efficiently. I have been able to rearrange some job specifications to adapt to the needs of the complicated business environment, evaluating the job of each employee and redesigning his or her responsibilities to fit the changes. I have likewise contributed to the creation of new operations system as well as the improvements made on the rules that govern the system for more efficient work output. I suggested ways which helped the company optimizer the function of the departments in order to minimize the cost and expenses of the operations.

Management of Competing Demands and Priorities An information system is indispensable in every organization as reflected in its role, purpose, and sources of information. Information system plays a crucial role and is a contributory factor in the success of an organization for the modification of present plans and strategies of an organization and the formulation of future goals, approaches, and steps the organization will undertake are based on the data obtained in the past and converted to information organized in the system. Furthermore, it could be noticed that in such modification and formulation, decision-making is essential. Hence, information system influences decisions thereby affecting the status of the organization at the present and in the future. With the ever-increasing demands by the clients and customers, raw materials suppliers, as well as the pressure from the upper management of the organization for increased efficiency and profit, collaborating and effective management of priorities in the production constantly pose challenges and beset the operations management of the company. As such, it is inevitable that the organization implement programs and production systems that will best suit the needs of the company and its clients. The discussion below presents the IT system and techniques used in the company along with the lean management initiative to add value to the production process and overall operations of the business organization.

Generating manual and IT systems in the workplace provides a more advantage in terms of receiving, recording, processing, storing and transferring information. Manual system With manual system of work, information processing is more meticulous and requires a lot of effort but produces good end results. Nowadays with the advent of information technology, using manual system perceive as slow as compare to IT systems. Here, record processing takes different stages before going to final stage. Although efficiency and effectiveness is proven and accuracy and validity is tested, using manual system generates limited information for processing. Using manual system for storing relevant information is still considered as a safe procedure. Especially when the information requires confidentiality. Here, information and records are kept for future use. With the use of manual system, transferring information and records requires more time. On the other hand, there are still activities in the workplace that practice manual system to secure information or confidentiality. IT system Through the advent of information technology, business transactions are more on the advantage position. In just one click, information is sent through up to date and powerful technology. With the use of Information technology, information processing improves with several benefits such as lower costs capital management, fastest time, reduces pressure and hassles in the workplace among others. As we all know, information processing is not an easy job because it entails processing of vast amount of information that is usually needed immediate attention. With the rise of globalization, businesses rely on information technology to get the work over and done. It is not a problem in the workplace to store information using IT system. In just a click, information can be saved or retrieved. However, confidential information and records are not too safe using the IT system because somebody may access it. Information Technology system benefited the transferring of information, no matter how far the business area or the country. In just a click, all the information can be viewed through computers. However, IT system has disadvantages also because information that will be transferred can be access by someone if it is not secure enough. The development of Lean Quality Management System is one of the quality management approaches that address the business setting at present. It was developed to (1) save thousands of dollars each year by avoiding the waste associated with a paper quality system, (2) harness the creativity of employees while maintaining control of their projects, (3) perform tasks that are clearly assigned, defined, communicated and focused, (4) spend less time managing the quality system and more time improving the value stream, (5) reduce training costs by integrating procedures with training, (6) provide a management system that provides the who, what and when, and (7) provide the metrics to drive your organization to ever-higher levels of performance and success which works just as well for small as large companies (Lean Software Quality Management). The Lean Value Chain of Production System Model below illustrates how companies at present gain competitive advantage by adding value to the overall operation of the organization through efficient production system (2006). Business firms that utilize the value chain management strategy also consider increasing the companies' relationship with its shareholders by separating the business system into a series of value-generating activities, namely: (a) inbound logistics, (b) operations, (c) outbound logistics, (d) marketing and sales, and (e) customer service. In effect, from the receiving and warehousing of raw material from the suppliers, all through out the manufacturing and production process, as well as in the entire the distribution and sales of finished goods, the value-generating activities are supported by the infrastructure of the firm, its human resources management, and the technology it uses (2005). The lean machine is known in the ease of its use and installation as well as its cost effectiveness in dealing with wastes in most quality systems thereby saving time and money for the software. It can integrate information, reports, graphs, and other tools that work together to simplify and deliver information for improved business operations which minimize the time spent on other software programs (). Training and Development Plan Business organizations nowadays offer two-way learning experience within the company between

the employers and the employees. Employers benefit largely from trainings that they offer to staff and members of the firm given that the expected knowledge and skills were learned through the organizations venture on their human resources. At the best possible results, the organization will gain competitive attitude in the business world by housing in competitive and qualified workers. Employees on the other hand, are given the opportunity to improve on their work capabilities as qualified and productive members of the modern and information age work force. Ensuring employee performance requires establishing a level of competence which the employee should be aware of as a target to be achieved. This is the measure to be used by managers in determining compliance with the standard and in identifying problems met by the employees in meeting the standard. In developing a training program to enhance the productivity of employees the manager will look at the competency problems of the employees and fashion the program to enable the employees to reach and even exceed the competency standard established for their work. This requires a great amount of perceptiveness on the part of the manager in determining what method of training will be most effective in improving employee competence. Some of the training includes computer software training, internet-based training and self teaching by encouraging innovativeness in the workplace (1998). Employers need to enroll their staff in annual or quarterly training courses to upgrade their skills and enrich their knowledge so as to foster individual and personal development and improvement. Possibilities of promotion through their acquired knowledge and improved skills as competitive employees should always be reminded to the staff as a form of motivation to encourage productive outputs. Incentives in the form of financial aids like bonuses and other material compensations as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorse by the company to boost confidence and motivate the employees. This in turn will also be profitable to the organization itself due to increased output of the work force. It is also apparent that equal relations between the employer and the employees should be practiced to encourage productivity in the business organization. Enhancing good working relations among all the employees and preserving a good working environment and atmosphere ideally, will provide harmonious relationship inside the business organization. Maintaining such condition within the office will elicit productivity from the employees as they enjoy their duties of accomplishing their tasks and will help in reducing stress and eventual burnout in the workplace. Encouragement of wider work responsibility of basic skills such as development and learning courses should be given to employees on specified times of the year. This will restore fresh knowledge to old employees. In the case of newly hired staff, more comprehensive and rigorous training exercises should be applied to better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Promoting individual competence and competitiveness among the staff and other members of the organization will be of benefit to the company since this will uphold and advance the initiative work attitude. Team building exercises wherein work peers as well as the supervisors will be participating should be regularly held. Bonding activities like out of town trips can be psychologically helpful to all the employees that will elicit bond among the people inside the company as well as for the employers to know their work team. Since workplace learning and training programs in business organizations is a common practice nowadays, more trust should be given to the work team of the company. Entertaining and respecting solicited opinions and ideas of ordinary employees will be of help in setting the corporate goals of the company since the staff is encouraged to think as owners of the business enterprise.