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The strategic management process 002

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The strategic management process 002

  1. 1. The Strategic Management Process Formulation, Implementation and Evaluation By Ndikhaye Netshiozwi 1
  2. 2. HypothesisIf a business has a proper strategic management process in place, then its activities will yield profitability and growth. 2
  3. 3. IntroductionWhat is a businesswithout SMP? 3
  4. 4. “All men can see these tactics whereby I conquer, but what none can see is thestrategy out of which victory is evolved.” – Sun Tzu 4
  5. 5. StrategyAccording to Wikipedia, Strategy is a general,nu-detailed, long-term plan of action, to achievea complicated goal. 5
  6. 6. StrategyAccording to Wikipedia, Strategy is a general,un-detailed, long-term plan of action, to achievea complicated goal. 6
  7. 7. Three levels of strategy• Corporate strategy• Business strategy• Operational strategy 7
  8. 8. Why is strategy important?• Provide direction and focus for departments and all employees.• Specify results that the business needs to achieve.• Align business activities with business goals.• Have a clear display of the business’s future. 8
  9. 9. Strategic Management ProcessThe process making choices and decisions thatwill enable the business to achieve its goals andto performance well. 9
  10. 10. Strategic Management Process 10
  11. 11. Formulation“If you fail to plan, youare planning to fail!” --Benjamin Franklin 11
  12. 12. FormulationStrategy formulation is the process of definingmission of the business, objectives, andselecting other options that can be used as thestrategy of the business. 12
  13. 13. Formulation 13
  14. 14. Key Terms in Strategic Management• Vision Statement • Annual Objectives• Mission Statements • Policies• External • Long-term Opportunities and Objectives Threats • Strategies• Internal Strengths and Weaknesses 14
  15. 15. ImplementationTheres only onegrowth strategy: workhard. -- William Hague 15
  16. 16. Five reasons why strategy fail• Just planning• Partial commitment• Wrong people• Ignoring details• Lack of resources 16
  17. 17. EvaluationThis is a process of continuously monitoring thebusiness’s progress toward its long-term goalsand objectives. 17
  18. 18. EvaluationManagers should ask:• Revising strategy?• Problem areas?Evaluating:• Review• Measure• Correct 18
  19. 19. Rumelts Evaluation Criteria• Consistency• Consonance• Advantage• Feasibility 19
  20. 20. Benefits of Evaluation• Provide direction• Provide guidance• Inspire confidence 20
  21. 21. Strategic Decision Makers• Chief Executive Officer (CEO)• Board of Directors• Department Managers• Supervisors 21
  22. 22. Decision Making through StrategyStrategic decisions differ from operational andtactical decisions in matters of scope and timeframe. 22
  23. 23. ConclusionWithout SMP, it will behard for business tosee success. 23
  24. 24. “A strategy is not what you wish would happen. It is a set of practical actions for moving forward.” – Richard Rumelt 24
  25. 25. Thank you 25

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