Strategic+management+3

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Strategic+management+3

  1. 1. Strategic Management BHRM 31124 R.A.Ishanka Chathurani Lecturer (prob) Department of Human Resource Management Faculty of Commerce & Management Studies University of Kelaniya
  2. 2. Overview of Strategic Planning Process <ul><li>Learning Outcomes, </li></ul><ul><li>Describe the basic elements of the strategic management process </li></ul><ul><li>Understand the advantages and disadvantages of strategic planning model </li></ul>
  3. 3. Strategic Management Process <ul><li>Strategic Management Process consists of main three stages. </li></ul><ul><li>Understanding strategic position </li></ul><ul><li>Strategy choice </li></ul><ul><li>Strategy in to action </li></ul>
  4. 4. The Model of Strategic Management
  5. 5. Establishing Strategic Directions <ul><li>The first step of strategic management process is to establish long-term direction for the organization. This includes defining corporate mission, goals and objectives. </li></ul>
  6. 6. Strategy Formulation <ul><li>This is the second step of strategic planning process. A firm’s strategy is a grand plan that is designed to achieve the corporate mission, goals and objectives. </li></ul>
  7. 7. Strategy Implementation <ul><li>Strategy implementation is the third step of strategic management process and it is the process by which strategies and policies are put into action through the development programmes, budgets and procedures. </li></ul>
  8. 8. Strategic Controls and Review <ul><li>Review and control is the final step of strategic management process. It is the process by which performance results are monitored so that actual performance can be compared with desired performance. </li></ul>
  9. 9. Assumptions of strategic planning model <ul><li>Top down </li></ul><ul><li>Corporate first </li></ul><ul><li>Breakdown </li></ul><ul><li>Objective evaluation </li></ul>
  10. 10. Advantages of strategic planning model <ul><li>Identifies risks </li></ul><ul><li>Forces managers to think </li></ul><ul><li>Forces decision making </li></ul><ul><li>Better control </li></ul><ul><li>Public knowledge </li></ul><ul><li>Time horizon </li></ul><ul><li>Co-ordinates </li></ul><ul><li>Allocates responsibility </li></ul>
  11. 11. Disadvantages of strategic planning <ul><li>It’s both cost and time consuming </li></ul><ul><li>Lack of flexibility </li></ul><ul><li>Loss of initiative to enterprising firms </li></ul><ul><li>There is a excessive formalization in the process </li></ul>
  12. 12. - The End -

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