STRATEGIC MANAGEMENT

PROCESS

A five-component approach to promote

successful organizational performance

1. Vision formulation which leads to the statement of the

Mission.

2. The mission is then converted into performance Objectives

3. To achieve objectives you develop Strategies

4. mplementation
Strategy I
5. Evaluation of performance
1.The vision formulation which leads to the statement of the Mission
Mission * what is business?
* what will be the business?
* it established long-term direction
* it needs to use simple terminology
* it needs to be inspirational buy in
* recognition of threats & opportunities
* entrepreneurial

Three Components of the mission

statement
* the needs to be served by the company
* the targeted customer group
* how the company will provide the product/service

2. The mission is then converted into performance objectives

* measurable statements
* specified performance
* specified time
* short-range objectives
* long-range objectives
* top-down rather than bottom-up

Two types of performance yardsticks

* financial objectives
* strategic objectives

3. To achieve objectives you develop Strategies

* action steps
* the concepts of unified and consistent strategies
* the moves and approaches used to achieve objectives
* dynamic
* continual review and refinement
* adjust to internal and external forces

Levels of strategies
* Corporate game plan for a diversified company
* Business game plan for single business
* Functional strategy initiatives of one part of a business
* Operating initiatives of key operating units
 Factors affecting strategies
* society forces
* political and regulatory forces
* citizenship considerations
* the industry and competitive conditions
* opportunities and threats
* organizational strengths and weaknesses
* ethical considerations
* personal managerial ambitions
* company culture

Strategy making styles

* Master Strategist self- explanatory
* Delegate-to-Others bottom-up
* Collartorative middle approach
* Champion bottom up with manager interest

4. Strategy Implementation
* making it happen
* structuring an organization
* budgeting
* motivating
* creating reward structures
* creating work environment
* information & reporting systems

Who does the strategy making

and implementing?

ALL MANAGERS
5. Evaluation of performance
* review process
* adjust mission
* adjust objectives
* adjust strategies
* initiate corrective measures