Strategic management is both an Art and

science of formulating, implementing, and

evaluating, cross-functional decisions that
facilitate an organization to accomplish its
objectives. The purpose of strategic
management is to use and create new and
different opportunities for future.
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*5 Benefits of Strategic Planning *

It allows organizations to be proactive rather than
reactive.
It sets up a sense of direction.
It increases operational efficiency.
It helps to increase market share and profitability.
It can make a business more durable.

Mission And Vision

The mission is the core purpose of
an organization or a company. It A vision is a vivid mental image of what you want your
is a summary of the aims and core business to be at some point in the future, based on
values. A mission clearly tells what your goals and aspirations. Having a vision will give
you as an organization does for your business a clear focus, and can stop you heading
customers. A mission is in the wrong direction.
comprehensive but also very
specific to set you apart from other
organizations.
A vision statement is used to describe the future state of
the organization, i.e., what the organization hopes to
become in the future. It is, therefore, a long-term goal
provides direction for the organization. It also
communicates the purpose of the organization to the
employees and other stakeholders and provides them with
the inspiration to achieve that purpose.

The mission statement provides the organization with a clear

and effective guide for making decisions, while the vision
statement ensures that all the decisions made are properly
aligned with what the organization hopes to achieve
 The External Assessment
The Nature of an External Audit
The purpose of an external audit is to develop
a finite list of opportunities that could benefit
a firm andthreats that should be avoided. As
the term finite suggests, the external audit is
not aimed at developingan exhaustive list of
every possible factor that could influence the
business; rather, it is aimed atidentifying key
variables that offer actionable responses.
Firms should be able to respond either
offensively or defensively to the factors by
formulating strategies that take advantage of
externalopportunities or that minimize the
impact of potential threats.

The Internal Assessment

Internal audit reviews and analyses the
attributes of an organization provides counsel
and recommendations to the members of the
organization to perform the duties effectively.
It is an independent function that evaluates
and appraise the functioning of the
organization

Strategies into Action

Strategy Analysis and Choice

Strategy analysis and choice focuses on generating
and evaluating alternative strategies, as well as on
selecting strategies to pursue. Strategy analysis and
choice seeks to determine alternative courses of
action that could best enable the firm to achieve its
mission and objectives.

Market segmentation is the research that determines how

your organization divides its customers or cohort into
smaller groups based on characteristics such as, age, income,
personality traits or behaviour. These segments can later be
used to optimize products and advertising to different
customers.

ACQUIRING CAPITAL TO IMPLEMENT

STRATEGIES►EPS = Earnings Per Share, which
is Net Income divided by # of Shares
Outstanding.
Product positioning is a strategic exercise that defines where
►Another term for Shares Outstanding is Shares
your product or service fits in the marketplace and why it is
better than alternative solutions. The goal is to distill who
Issued
your audience is, what they need, and how your product can ►EBIT = Earnings Before Interest and Taxes
uniquely help. Product positioning is the basis of your (also called operating income)
marketing story ►EBT = Earnings Before Tax
►EAT = Earnings After Tax