Q1. Discuss merging the strategic vision objectives and strategy into a strategic plan.
Answer=Strategic planning is a well-organized effort aiming at fulfilling business objectives in a
systematic manner. It is a forward looking exercise which determines the future posture of the
enterprise.
The strategic management process encompasses three phases which together involve a number of
systematic steps. These three phases are strategy formulation, Implementation, evaluation and
control.
I. Strategy Formulation
Strategic formulation Involves four Important steps, determination of mission and objectives,
analysis of strengths and weaknesses of the firm and the environmental opportunities and threats
(SWOT), generation of alternative strategies and choosing ,the most appropriate strategy.
Determination of Mission and Objectives: Strategy is a means to achieve the objectives. It is,
therefore, quite obvious that determining the mission (which influences objectives) and objectives is
the first step in strategy formulation.
SWOT analysis: The strengths and weaknesses of the firm and opportunities and threats (SWOT) in
the environment will indicate the portfolio strategy and other strategies it should pursue.
An organization should address questions such as what are the changes, including possible future
changes, in the environment which have implications for us and how should we respond to them?
What are the opportunities in the environment; which can be exploited utilizing our strength?
What are the threats and do we have the strength to combat the threats? How can we mass up our
strength? What are our weaknesses? Can we overcome or minimize the weaknesses?
Strategic Alternatives: Given the mission and objectives and having analyzed the strengths and
weaknesses of the firm and the environmental opportunities and threats, the strategists should
proceed to generate possible alternative strategies. There may be different strategic options for
accomplishing a particular objective. For example, growth in business may be achieved by increasing
the share in existing markets or by entering new markets, by horizontal integration or by a
combination of these.
Evaluation and choice: The purpose of considering different strategic options is to adopt the most
appropriate strategy. This necessitates the evaluation of the strategic alternatives with reference to
certain criteria. Criteria such as suitability, feasibility and acceptability are commonly employed to
evaluate the strategic options.
II. Implementation
Operationalizing the strategy requires transcending the various components of the strategy to
different levels; mobilization and allocation of resources; structuring authority, responsibility, tasks
and information flows; and establishing policies.
Implementation of strategy involves a number of administrative and operational decisions.