The strategic management process involves several steps: 1) analyzing internal strengths and weaknesses as well as external opportunities and threats, 2) formulating a vision, mission, objectives and goals, 3) developing strategic alternatives, 4) selecting the best strategy, 5) implementing the strategy, and 6) evaluating and controlling the strategy through feedback. The document provides details on each step of the process and uses Hero Honda as an example to illustrate setting goals to increase market share.

1. STRATEGIC MANAGMENT PROCESS
Presented by Ramkrishna Rajput
SHRM Roll No.15
SHRM Exam Sheet No.116046

2. STRATEGIC MANAGMENT PROCESS
• Strategy Formulation
• External Environmental Analysis
•
• Strategic Alternatives and Choice
• Company’s
• Mission,
• Objective
• Internal Environmental Analysis
• Strategy
implementati
on
• Project
• Procedural
• Structural
• Behavioural
• Functional
• Strategy
Evaluation &
Control
• Evaluation
and
control of
strategy
Feedback
Feedback

3. The Basic steps of the of strategic management process
include
 Vision :- An organizational vision is the answer to the question.What
do we want to create.
 Mission :- Mission relates the company’s existence with the needs of
the society.
 Objective :-Accomplishment of mission of an organization requires
the formulation of a number of objective.Objectives are end towards
which activity is aimed.For example the objective of Hero Honda is to
enhance market share.
 Goals :- Goals are derived from objectives goal is precise and is
expressed in clear and specific terms.The goal for the objective of
Hero Honda of enhancing market share is to increase the sales of
Hero Honda Motor cycles by two lakh in 2010.
 Internal Environmental Analysis :- Strength and Weaknesses :
Internal environmental factor include functional areas organizational

4. Resources,organisational structure and stakeholdrs analysis of these
factor reveals the company strengths and weakness.For example
skilled,committed and smart employees is a strength and poor
financial position is the weakness of the company.
 External Environmental Analysis :- Opportunities and Threats :
External environment consists of Stepin
viz.Socail,Technical,Economic,Political, International and Natural
factors.
 Revise Organisational Direction :- A thorough scanning of
environment both internal and external reveals organisation’s
strengths, weaknesses,opportunities and threats.
 Formulation of Alternative Strategies :- All possible alternavtive
strategies are formulated based on the available options and in the
light of organizational analysis and environmental analysis.
 Selective the best strategy :- All the three strategies in case of
Hero Honda example cannot be and need not be implemented in the

5. At the same time.
 Strategy Implementation :- The next logical step is to put the
stratety in action.The strategy is to be implemented in and integrated
way.
 Strategy Evaluation and Control :- Implementation of the strategy
may not automatically result in goal achievement.Reduction of price
in case of Hero Honda example may not lead to increase in sales
improving the employee skill and commitment also may not result in
cost reduction.