Strategic management process
Upcoming SlideShare
Loading in...5
×
 

Strategic management process

on

  • 21,816 views

 

Statistics

Views

Total Views
21,816
Views on SlideShare
21,735
Embed Views
81

Actions

Likes
6
Downloads
675
Comments
6

3 Embeds 81

http://managementexperts.wordpress.com 76
https://managementexperts.wordpress.com 4
https://twitter.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Strategic management process Strategic management process Presentation Transcript

  • STRATEGIC MANAGEMENT PROCESS JERLY AKKU CHERIAN MACFAST
  • “Process of formulation, implementation, evaluation and control of strategies to realise the organisations strategic intent.”
  • The strategic management process encompasses three phases, which together involve a number of systematic steps.1.Strategy formulation2.Implementation3.Evaluation & control.
  • FORMATION OF CONSIDERATION OF MISSION & SWOT ANALYSIS STRATEGIC OBJECTIVES ALTERNATIVESEVALUATION AND IMPLEMENTATION CHOICE OF CONTROL STRATEGY STRATEGIC MANAGEMENT PROCESS
  • STRATEGIC FORMULATION
  • Strategic formation involves four important steps which are,1. Determination of mission and objectives2. Analysis of strengths and weakness of the firm3. Environmental opportunities and threats4. 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 ALTERNATIVESGiven the mission and objectives and havinganalyzed the strength and weakness of the firm andenvironmental opportunities and threats. Thisstrategies should proceed to generate possiblealternatives strategies. There may be differentstrategies options for accomplishing a particularobjectives.
  • 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 CONSIDERATION OF MISSION & SWOT ANALYSIS STRATEGIC OBJECTIVES ALTERNATIVESEVALUATION AND IMPLEMENTATION CHOICE OF CONTROL STRATEGY STRATEGIC MANAGEMENT PROCESS
  • BENEFITS AND RELEVANCE OF STRATEGIC MANAGEMENT1. 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.
  • LIMITATIONS1. 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