The Foundations

of Strategic Management
Components of Strategic
Management
External Analysis
Formulate the Mission
(Vision, Core Values, G&Os)
Internal Analysis
Formulate the Strategy
Implement the Strategy
Evaluate the Strategy
SWOT Analysis
What Is Strategic
Management?
The ongoing process companies use to form
a vision and mission, analyze their internal
and external environment, select one or more
strategies, then develop and implement
tactical plans that create value for all
stakeholders (customers, shareholders,
employees, community, etc.)
Parts of Strategic Management
Mission*
Answers why we exist
Defines business or
businesses in which it
operates
Generally does not
change
Strategy
An action plan that fulfills the firms mission and is
designed to move it toward achievement of its vision

Vision*
Answers where the
firm is going and what
it will look like in the
future (2 10 years)
Generally measurable
Subject to change
*May also be stated as purpose, core values, ideals, principles, etc.

Mission Statements
Look up the mission of your firm
Does one exist?
Does it describe why the firm exists
Does it describe the business in which it
operates?
Is it subject to change?
Is it a good mission statement?
How could it improve?
Vision Statements
Look up the vision of your firm.
Does one exist?
Does it describe where the firm is going?
Is is measurable?
Is it subject to change?
Is it a good vision?
How could it improve?

Other Statements
Does your firm state any of the
following?
Core Values
Credo
Purpose
Ideals
Other

Mission / Vision
Overall, assess whether the presence
of, absence of or deficiencies in your
firms guiding principles (aka Mission,
Vision, Core Values, etc.) explains its
current health as a going concern.
Use this assessment as part of your
analysis of the firm and potentially as
a basis for improvement
recommendations.
Business Strategy
Homework for next class
Continue to research the Mission,
Vision, Core Values, or similar of
your chosen focus firm
Research the leadership of the
firm