STAGES OF

STRATEGIC
MANAGEMENT
GROUP 7:
DELMONTE, ROSEMARIE
MALLORCA, TRISHA
JAVIER, KATE
SARMIENTO, JAY-R B.
  
WHAT STRATEGIC MANAGEMENT PROCESS?

• Strategic Management is the art of defining, actualizing, and

evaluating decision with diverse functionalities that permit
organization to attain their objectives. It is method of
specifying organizations’ objectives by developing policies and
plans to achieve those objectives and allocating resources to
implement those policies and plans.
  
THE 5 STAGES OF THE STRATEGIC
MANAGEMENT PROCESS
• The Strategic Management Process is more than
a set of rules to take after. It is a philosophical
approach to business. Best administration must
think deliberately to begin with, then apply that
considering to a prepare.
FIRST STAGE:
GOAL SETTING
• Purpose: to clarify the business vision
• This stage contains of recognizing three facts:
1. Define the short- and long-term objectives,
2. Identify the process of how to achieve the objectives
• Finally, personalize the process according to your staff, give
each member a task. During this process, check that the
objectives are:
- detailed,
- realistic, and
- coincide with the values of your business vision
• The final step at this step, is to make these goals and
objectives known to all staff.
 SECOND STAGE: ANALYSIS
• The analysis is a key stage since the information gotten in this
stage will arrange the following two stages. At this stage,
collect significant information and data to achieve your vision.
The center of strategic analysis should be to understand
business as a maintainable substance, with strategic and
distinguish activities that will offer help business to develop.
 THIRD STAGE:STRATEGY FORMULATION

• Analytical process of selection of the best suitable

course of action to meet the organizational objectives
and vision.
Steps of Strategy Formulation

1. Establishing Organizational Objectives- This involves establishing long-term goals of an

organization.

2. Analysis of Organizational Environment- This involves SWOT analysis, meaning identifying

the company’s strengths and weaknesses and keeping vigilance over competitors’ actions to
understand opportunities and threats.

3. Forming quantitative goals- it's the measurable action that takes you closer to your
ultimate objective.

4. Objectives in context with divisional plans- Every business firm has specific divisions that
deals with the different tasks needed for the company’s continued performance.

5. Performance Analysis- This is done to estimate the degree of variation between the
actual and the standard performance of an organization.

6. Selection of Strategy- This is the final step of strategy formulation. It involves evaluation
of the alternatives and selection of the best strategy amongst them to be the strategy of the
organization.
 FOURTH STAGE: STRATEGY IMPLEMENTATION
• Successful implementation of the strategy is essential for the
success of the company
• If the overall strategy does not work, with the current
business structure, a new structure must be installed at the
beginning of this stage
• Everyone within the organization must be clear about their
responsibilities and duties, and how this fit in with the overall
goal. In addition, all resources or funds for the company must
be guaranteed at this time. Once financing is in place and
employees are ready, execute the plan.
 FIFTH STAGE: STRATEGIC EVALUATION AND CONTROL

•Strategic Evaluation and Control is defined as the process of determining

the effectiveness of a given strategy in achieving the organizational objectives
and taking corrective action wherever required.
EVALUATION AND CONTROL PROCESS
ADVANTAGE AND DISADVANTAGE OF THE 5 STAGES
OF THE STRATEGIC MANAGEMENT PROCESS

ADVANTAGES
1.Making a better future.
2.Identifying the Directions.
3.Better Business Decisions.
4.Financial Advantage
DISADVANTAGE
1.Time Taking Process.
2.Proper Planning.
REFERENCE:

• What strategic management process? | Egyptian Cultural Center: ‫المركز الثقافي المصري‬e(ccceg.com)