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 omponents o! 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
T"o t#pes o! per!ormance #ar$stic%s
* financial objectives
* strategic objectives
3. To achieve objectives you develop Strategies
* action steps
* the concepts of unified and consistent strategies
* the moves and approaches used to achieve objectives
* dynamic
* continual review and refinement
* adjust to internal and external forces
&evels o! strategies
* orporate game plan for a diversified company
* !usiness game plan for single business
* "unctional strategy initiatives of one part of a business
* #perating initiatives of key operating units
'actors a!!ecting strategies
* society forces
* political and regulatory forces
* citizenship considerations
* the industry and competitive conditions
* opportunities and threats
* organizational strengths and wea$nesses
* ethical considerations
* personal managerial ambitions
* company culture
Strateg# ma%ing st#les
* %aster &trategist self- explanatory
* 'elegate-to-#thers bottom-up
* ollartorative middle approach
* hampion bottom up with manager interest
4. Strategy (mplementation
* ma$ing it happen
* structuring an organization
* budgeting
* motivating
* creating reward structures
* creating wor$ environment
* information & reporting systems
)ho $oes the strateg# ma%ing
an$ implementing*
+&& M+,+-E.S
5. Evaluation of performance
* review process
* adjust mission
* adjust objectives
* adjust strategies
* initiate corrective measures