The first step in the strategic management process is to identify the organization's current mission, vision, objectives, and strategies. The mission statement outlines the basic purpose and reason for the organization's existence, while the vision statement looks ahead to the future goals. Goals and objectives are then formulated to be in sync with the mission statement, with goals establishing where the organization intends to go and objectives providing yardsticks to measure performance. Together, the mission, vision, goals and objectives guide the organization and provide a framework for the remaining steps in the strategic management process.

1. Planning

2. Planning
Planning means looking ahead and chalking out future
courses of action to be followed. It is a preparatory step. It is a
systematic activity which determines when, how and who is
going to perform a specific job.
Planning is a detailed programme regarding future
courses of action. It is rightly said “Well plan is half done”.
Therefore planning takes into consideration available &
prospective human and physical resources of the organization
so as to get effective co-ordination, contribution & perfect
adjustment. It is the basic management function which
includes formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the available
resources.
SO, PLANNING IS THE FIRST MANAGEMENT FUNCTION AND WHEN WE PLAN WE
SHOULD CONSIDER NOT ONLY THE GOAL/GOALS OF OUR COMPANY BUT ALSO
THE RESOURCES THAT CAN CONTRIBUTE IN ORDER FOR US TO BE SUCCESSFUL

3. Planning in the Organization
The successful organization is one that has a clear plan.
The plan clarifies to both employees working in the organization
and to those dealing with the organization, what it is that the
company is doing and where they are headed.
Planning Emcompasses:
• Defining the organization’s objectives or goals.
• Establishing an overall strategy for achieving those goals.
• Developing a comprehensive hierarchy of plans to integrate and
coordinate activities.

4. Advantages of Planning
• It gives direction to managers and nonmanagers
alike.
• Planning can reduce the impact of change.
• It minimize waste and redundancy.
• Planning establishes objectives or standards that
facilitate control.

5. Disadvantages of Planning
• Planning may create rigidity.
• Plans can’t be developed for a dynamic environment.
• Formal plans can’t replace intuition and creativity.
• Planning focuses managers’ attention on today’s
competition, not on tomorrow’s survival.
• Formal planning reinforces success, which may lead
to failure. ALL IN ALL IT CAN GIVE THE
ORGANIZATION A SMOOTH PROCESS TO
ACHIEVE ITS MISSION BUT WE MUST
CONSIDER CHANGES THAT COULD AFFECT
OUR PLANS FOR TOMORROW’S SURVIVAL.

6. Exhibit 4-1 Types of Plans
Breadth Time Frame Specificity
Frequency
of Use
Strategic Long Term Directional Singular Use
Tactical Short Term Specific Standing

7. Strategic and Tactical Plans
• Strategic plans are plans that apply to the entire
organization, establish the organization’s overall
objectives, and seek to position the organization in
terms of its environment.
• Tactical plans (sometimes referred to as operational
plans) specify the details of how the overall objectives
are to be achieved.
• Strategic and tactical plans differ in three primary ways
—their time frame, scope, and whether they include
a known set of organizational objectives.
SO STRATEGIC PLANS IS MORE GENERAL IN TERMS OF ESTABLISHING
OVERALL OBJECTIVES WHILE TACTICAL PLANS IS MORE SPECIFIC ON
HOW TO ACHIEVE THOSE OBJECTIVES.

8. Short-term and Long-term Plans
• Short-term plans are plans that cover less than one
year.
• Long-term plans are plans that extend beyond five
years.
• Their differences lie in the length of future
commitments and the degree of variability
organizations face.
FOR EXAMPLE YOUR LONG TERM PLAN IS TO HAVE AN EXTENSION
BRANCHES ALL OVER THE COUNTRY SO YOUR SHORT PLAN FOR EXAMPLE IS
TO GAIN AWARENESS TO THE PEOPLE SO THAT YOU CAN EARN ENOUGH
MONEY/PROFIT TO ACHIEVE YOUR LONG TERM PLAN.

9. Specific and Directional Plans
• Specific plans have clearly defined objectives and
leave no room for misinterpretation.
• Directional plans are flexible plans that set out
general guidelines.

10. Single-use and Standing Plans
• Single-use plans are used to meet the needs of
particular or unique situation.
• Standing plans are ongoing, and provide guidance
for repeatedly performed actions in an organization.

11. STRATEGIC MANAGEMENT

12. What’s Strategy?
• Strategy is management’s overall plan and actions
for deploying resources and skills taking into
consideration opportunities and threats in the
environment
– to achieve it’s mission, vision and objectives
– to establish a favorable competitive position.
• Strategy involves:
– An organization’s goals
– A series of related decisions & actions
– Takes into account key internal strengths & weaknesses
and external opportunities threats
– Analysis, communication, coordination, & action

13. What is Strategic Management?
• Focuses on how managers formulate and implement,
and evaluate strategies aimed at developing and
maintaining competitive advantage:
– the reason some firms enjoy higher levels of
performance than their rivals or competitors.
FOR EXAMPLE ONE COMPANY IS VERY GOOD
WHEN IT COMES TO STRATEGIC
MANAGEMENT SO THEIR OVER ALL
PERFORMANCE IS HIGHER THAN OTHER
COMPETITORS.

14. Importance of Strategic Management
• Gives every employee a role to play in making the
firm successful
• Makes a difference in performance levels
• Provides systematic approach to uncertainties that
organizations face
• Coordinates and focuses employees to achieve
organization’s goals
ALL IN ALL IT GIVES EMPLOYESS OR STAFFS A SPECIFIC ROLE
TO ACHIEVE THE GOAL AND TO PREVENT DOUBTS WITHIN THE
ORGANIZATION.

15. Strategic Management Process
• Establishing a mission, vision and objectives
• Environmental Analysis
– analyzing the environment
– identifyng opportunities & threats
• Internal Analysis
– analyzing organization's resources
– identifying strength & weaknesses
• Strategy Formulation
• Strategy Implementation
• Strategic Control and Performance Evaluation

16. Identify the
organization’s
current mission,
vision,objectives,
and strategies
Analyze the
environment
Identify
opportunities
and threats
Analyze the
organization’s
resources
Identify
strengths and
weaknesses
Reassess the
organization’s
mission and
objectives
Formulate
strategies
Implement
strategies
Evaluate
results
The Strategic Management Process
1
.
2
.
3
.
4
.
5
.
6
.
7. 8. 9
.

17. 1st Strategic Management Process
Identify the organization’s
current mission,
vision,objectives, and
strategies

18. Mission , Vision & Goals & Objectives
• Mission relates to doing, so mission statements
are about your day-to-day operations. Your mission
statement outlines the practical things you will do to
achieve your vision statement. This allows the
organization to outline the basic purpose or reason
for its existence.
• Vision relates to seeing and looking, so vision
statements are about looking ahead. Your vision
statement outlines your business goals and where
you're headed.
• Goals establish where you intend to go and tell you
when you get there
• Objectives yardsticks for tracking a company’s
performance or end result.

19. How to formulate Mission & Vision
Statement
• Mission Statement:
1. Evaluate what your company really do.
2. Include the 4 Key Elements : Value, inspiration,
plausibility, and specificity.
3. Keep It Short and Sweet Remember
4. Consider Long-Term vs. Short-Term
5. Test It If you're revamping your statement
6. Revisit It Often

20. How to formulate Mission & Vision
Statement
Example: (Dep ED Mission Statement)
"TO PROTECT AND PROMOTE THE RIGHT OF
EVERY FILIPINO TO QUALITY, EQUITABLE
CULTURE-BASED AND COMPLETE BASIC
EDUCATION WHERE:

21. How to formulate Mission & Vision
Statement
• Vision Statement:
1. Examine your mission statement.
2. Dare to Dream
3. Shape your vision statement; apply the formula.
4. Commit to your vision statement.
5. Follow the 7 "Be"

22. How to formulate Mission & Vision
Statement
Example: (Dep ED Vision Statement)
We dream of Filipinos
who passionately love their country
and whose values and competencies
enable them to realize their full potential
and contribute meaningfully to building the nation.
As a learner-centered public institution,
the Department of Education
continuously improves itself
to better serve its stakeholders.
IN THE MISSION
STATEMENT OF
DEPED WE
CONSIDER THE
FUTURE STATE
OF THE GOV’T
INSTITUTION, IT
IS IN SYNCH
WITH THE
MISSION
STATEMENT TO
PROVIDE
CULTURE
BASED
EDUCATION TO
ALL AND IT IS
ALIGN WITH
GOAL.

23. How to formulate Goals & Objectives
1. Tie your goals and objectives to your mission.
- This approach is to know and review your company
or institution mission statement.
2. Use goal setting using the acronym A.C.E.S.
A - CHIEVE; What do you want to attain in the future?
C - ONSERVE; What do you want to hang on to?
E - LIMINATE; What do you want to get rid of?
S - TEER CLEAR; What do you want to avoid?
A-PUT MORE BRANCHES OF YOUR COMPANY AROUNG THE COUNTRY
C- MOTIVATED AND EXPERRIENCED EMPLOYEES
E- COMPETITION AMONG STAFFS TO PREVENT MISCOMMUNICATION
S- LOSING VALUED CLIENTS AND STAFFS

24. How to formulate Goals & Objectives
3. Make final choices in formulating goals
and objectives:
Keep each goal clear and simple.
Be specific.
Be realistic
Don’t be afraid to push yourself and think big.
Make sure your goals are in sync with your
mission.

25. How to formulate Goals & Objectives
Example: Goals & Objectives of Dep ED
GOAL: "TO PROVIDE QUALITY, EQUITABLE CULTURE-BASED AND
COMPLETE BASIC EDUCATION"
OBJECTIVES:
Students learn in a child-friendly, gender-sensitive, safe and motivating
environment.
Teachers facilitate learning and constantly nurture every learner.
Administrators and staff, as stewards of the institution, ensure an
enabling and supportive for effective learning to happen.
Family, community and other stakeholders are actively engaged and
share responsibility for developing lifelong learners.
OUR GOAL CAME FROM THE
MISSION STATEMENT I HAVE
READ EARLIER
THE OBJECTIVES IS MORE DETAIL ON HOW WE CAN ACHIEVE OUR GOAL
SO WE MUST REVIEW VERY WELL OUR MISSION STATEMENT IN ORDER TO COME
UP WITH GOALS AND OBJECTIVES.

26. 2nd Strategic Management Process
Environmental Analysis
-refers to screening large amounts of information to detect emerging
trends and create a set of scenarios. All external influences that
impact a company’s decision and performance.
Environment of firm classified by proximity into:
The macro-environment consists of
- The international/national economy; changes in demographic
structures; social and political trends; technology; and the natural
environment.
The micro-environment consists of
- The industry environment such as competitors, suppliers, customers;
unions and employees; owners and shareholders, etc.
IT INVOLVES EXTERNAL FACTORS THAT AFFECT COMPANYS PERFORMANCE.
THEN MACRO ENVIRONMENT ARE THE PROCESSES OCCURING OUTSIDE THE
COMPANY WHILE MICRO ENVIRONMENT OCCURING WITHIN THE COMPANY.

27. 3rd Strategic Management Process
Internal Analysis
- Involves the evaluation of the inventory of the firm’s
resources and capabilities.
• Resources/Capabilities can be classified as:
- Tangible resources: Financial or physical assets
- Intangible resources: brand name, reputation (product
& firm), organizational culture, etc.
- Capabilities or competencies: managerial ability,
specialized skill & knowledge base of employees, etc.

28. Organization’s
resources
Opportunities
in the
environment
Organization’s
opportunities

29. 4th Strategic Management Process
Strategy Formulation
- involves designing a course of action for addressing strategic
issues facing the firm after going through the external and internal
evaluation processes
• Actual strategy of a company involves:
- Planned or Intended Actions (Deliberate & purposeful actions).
- Reactive or Emergent Actions (As-need reactions to unanticipated
events in firm’s micro and macro environments).
• Strategy formulation is concerned with the following parts of a
company:
• Corporate -- Corporate strategies: Deals with businesses company
wants to be in & how to manage those businesses
• Businesses -- Competitive strategies: How to compete in specific
business or industry
• Functional areas -- Functional strategies: short goal-directed
decisions & actions of an organization’s various functional
departments.
STRATEGIC FORMULATION TAKES PLACE WHEREIN IT IS IN SYNCH WITH YOUR
GOALS AND YOU CONSIDER DIFFERENT AREAS IN THE COMPANY

30. 5th Strategic Management Process
Strategy Implementation
- is the process of putting a company’s various strategies
into action development of programs, policies, budgets &
procedures.
• It can take several months to years to complete.
• Most difficult part of the strategy process.
• The job of implementing strategy involves managers at
all levels

31. 6th Strategic Management Process
Strategic Control and Performance
Evaluation
- Process by which desired outcomes (mission, vision, &
objectives) are compared with realized outcomes to
determine if there are gaps.
- Initiate corrective actions by monitoring changes in
environment - competitor actions, new market
opportunities, customer needs & expectations.
AFTER YOU FORMULATE AND IMPLEMENT, YOU EVALUATE IF
YOUR STRATEGIC PERFORMANCE IS SUCCESSFUL, IF NOT
WHAT ARE THE CAUSES

32. ,
SWOT Analysis

33. SWOT Analysis
• Opportunities are positive external environmental
factors, and threats are negative ones.
• Strengths are internal resources that are available or
things that the organization does well.
• Weaknesses are those resources that an organization
lacks or activities that it does not do well.
Inside the organization Outside the Organization
Strengths Opportunities
Weaknesses Threats

34. Once the SWOT is concluded, there are 4 strategies to
choose from in order to guide future directions:
1.The growth strategy
A strategy in which an organization attempts too increase the
level of its operates; can take the form of increasing sales
revenue, number of employees, or market share.
2.The stability strategy
A strategy that is characterized by an absence of significant
change.
3.Retrenchment strategy
A strategy is reducing its size, usually in an environment of
decline.
4.Combination strategy
A strategy that is the simultaneous pursuit by an organization of
two or more of growth, stability, and retrenchment strategies.
Grand Strategies

35. Strategic Planning Diagram
Internal
Factors
External
Factors
Grand
Strategy
• Strengths and Weaknesses
•These points are factors that exist within the company. So, for
instance, if the company is really good at research and devl't
you would list it as a streght. if they aren't very good at
negotiating land contract, you'd list that as a weaknesses.
Threats & Opportunities
- Examining facts that have a bearing on the company. These
exist outside of the organization.
- You must think of factors of the external nvironment and
demographic to apply in this section.
There are only 4:
1. Growth
2. Stability
3. Retrenchment
4. Combination