STRATEGIC MANAGEMENT

PROCESS

JERLY AKKU CHERIAN

MACFAST

Process of formulation,
implementation, evaluation and
control of strategies to realise
the organisation's strategic
intent.

The strategic management process

encompasses three phases, which
together involve a number of
systematic steps.
1.Strategy formulation
2.Implementation
3.Evaluation & control.

FORMATION OF
MISSION &
OBJECTIVES

SWOT
ANALYSIS

CONSIDERATION
OF STRATEGIC
ALTERNATIVES

EVALUATION
AND CONTROL

IMPLEMENTATIO
N

CHOICE OF
STRATEGY

STRATEGIC MANAGEMENT PROCESS

STRATEGIC
FORMULATION

Strategic formation involves four

important steps which are,
1. Determination of mission and objectives
2. Analysis of strengths and weakness of
the firm
3. Environmental opportunities and threats
4. Generation of alternatives strategies and
choosing the most appropriate strategies.

1.DETERMINATION OF MISSION AND

OBJECTIVES
Strategic management can be defined as
the art and science of formulating,
implementing
and
evaluating
crossfunctional decisions that enables an
organization to achieve its objectives.
In short, strategy is a means to achieve the
objectives. It is, therefore, quite obvious
that determine the mission and objectives,
is the first step in the strategic formation.

 The mission defines the board social

purpose and scope of the organization
whereas objectives more specifically
define the direction to achieve the
mission
Objectives help translate the organization
mission into results while objectives may
be generic in their expression, goals sets
specific targets to be achieved with in a
time frame.

2.SWOT ANALYSIS
In strategic management, the term
strategic is used to mean pertaining to
the relation between the firm and its
environment this indicates the role of
SWOT in strategic management.
In strategic management the strength
and
weakness
of
the
firm
and
opportunities
and
threats
in
the
environment will indicate the portfolio
strategy and other strategies it should

3.STRATEGIC ALTERNATIVES
Given the mission and objectives and
having analyzed the strength and
weakness of the firm and environmental
opportunities and threats. This strategies
should proceed to generate possible
alternatives strategies. There may be
different strategies options for
accomplishing a particular objectives.

4.EVALUATION AND CHOICE

The purpose of considering different
strategic options is to adopt the most
appropriate strategy. This necessitates
the evaluation of strategic alternatives
with reference to certain criteria.
Criteria such as suitability, feasibility and
acceptability are commonly employed to
evaluate the strategic options.

5.IMPLEMENTATION
Operationalsing the strategy requires
transcending the various components of
strategy to different levels, mobilization
and allocation of resource, structuring
authority, responsibility, task and
information follows, and establishing
polices.
Implementation of strategy involves a
number of administrative and operational
decisions.

6.EVALUATION AND CONTROL

Evaluation and control is the last phase of
the strategic management process. The
objective is to examine whether the
strategy as implemented is meeting its
objectives and if not to take corrective
measures.
Continuous
monitoring
of
the
environment and implementation of the
strategy is essential.

FORMATION OF
MISSION &
OBJECTIVES

SWOT
ANALYSIS

CONSIDERATION
OF STRATEGIC
ALTERNATIVES

EVALUATION
AND CONTROL

IMPLEMENTATIO
N

CHOICE OF
STRATEGY

STRATEGIC MANAGEMENT PROCESS

BENEFITS AND RELEVANCE OF

STRATEGIC MANAGEMENT
1. strategic management helps to envision
an organizations future, formulate
mission and make objectives clear.
2. Strategic management makes the
management dynamic, appropriate to
the environment and future oriented.

3. It make people realize what are they

working for, what is expected of each
SBU, division, functional department and,
to some extend, individuals.
4. Strategic management facilitates better
delegation, organization monitoring,
performance evaluation and control.
5. Strategic management would enable a
company to meet compensation more
effectively.

LIMITATIONS
1. Strategic management is a means to
achieve the mission and objectives of
the organization. Hence any lack of
realism or other limitation of the mission
or objectives would naturally get
reflected in the strategy.
2. Another problem is that strategic
planning is a complex and difficult task
which requires people with vision,
expertise
and
commitment
and

3. An important limitation of strategic

management is that if the
implementation of strategy is not
effective, even an excellent strategy
would not produce expected result

U
THANK YO