Strategic management process

1. STRATEGIC MANAGEMENT PROCESS
Prepared By:
Muhammad Riaz Khan
M.Com (Final)
Government College Of Management Sciences Peshawar
Cell: +923139533123
mriazkhan91@yahoo.com
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2. STRATEGIC
MANAGEMENT
The art and science of formulating,
implementing
and evaluating cross-functional decisions
that
enable an organization to achieve its
objectives.
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3. What is strategy?
Strategy is the direction and scope of an
organization over the long term: ideally, which
matches its resources to its changing
environment, and particular its markets,
consumers or clients so as to meet stakeholder
expectations.
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4. Strategy formulation
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Developing vision and mission
Identifying external opportunities and threats
Determining internal strengths and weaknesses
Establishing long term objectives
Generating alternative strategies
Choosing particular strategies to pursue
Deciding what new business to enter
How to allocate resources
Expand or diversify operations
Entering or not international market
Merge or form joint venture
How to avoid a hostile takeover
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5. STRATEGIC MANAGEMENT
PROCESS
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6. STRATEGIC MANAGEMENT
PROCESS
“Process of formulation, implementation, evaluation
and control of strategies to realize the organization'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.
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7. FORMATION OF
MISSION &
OBJECTIVES
EVALUATION
AND CONTROL
SWOT ANALYSIS
CONSIDERATION
OF STRATEGIC
ALTERNATIVES
IMPLEMENTATION
CHOICE OF
STRATEGY
STRATEGIC MANAGEMENT PROCESS
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8. 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.
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9. 1.DETERMINATION OF MISSION AND
OBJECTIVES
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Strategic management can be defined as the art and science
of formulating, implementing and evaluating cross-functional
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.
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10. 
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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.
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11. 2.SWOT ANALYSIS
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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 pursue.
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12. 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.
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13. 4.EVALUATION AND CHOICE
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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.
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14. 5.IMPLEMENTATION
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Operationalizing 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.
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15. 6.EVALUATION AND CONTROL
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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.
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16. BENEFITS AND RELEVANCE OF
STRATEGIC MANAGEMENT
1.
2.
Strategic management helps to envision an
organization’s future, formulate mission and make
objectives clear.
Strategic management makes the management
dynamic, appropriate to the environment and future
oriented.
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17. 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.
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