Strategic Management Process

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. Strategy Implementation

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...