Anda di halaman 1dari 19

STRATEGIC MANAGEMENT PROCESS

JERLY AKKU CHERIAN


MACFAST

Process of formulation, implementation,
evaluation and control of strategies to realise
the organisation'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.


FORMATION OF
MISSION &
OBJECTIVES
SWOT ANALYSIS
CONSIDERATION OF
STRATEGIC
ALTERNATIVES
EVALUATION AND
CONTROL
IMPLEMENTATION
CHOICE OF
STRATEGY
STRATEGIC MANAGEMENT PROCESS
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.
1.DETERMINATION OF MISSION AND OBJECTIVES

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.

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.

2.SWOT ANALYSIS

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.

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.


4.EVALUATION AND CHOICE

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.

5.IMPLEMENTATION

Operationalsing 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.
6.EVALUATION AND CONTROL

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.

FORMATION OF
MISSION &
OBJECTIVES
SWOT ANALYSIS
CONSIDERATION OF
STRATEGIC
ALTERNATIVES
EVALUATION AND
CONTROL
IMPLEMENTATION
CHOICE OF
STRATEGY
STRATEGIC MANAGEMENT PROCESS
BENEFITS AND RELEVANCE OF STRATEGIC
MANAGEMENT

1. strategic management helps to envision an
organizations future, formulate mission and make
objectives clear.

2. Strategic management makes the management
dynamic, appropriate to the environment and
future oriented.

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.
LIMITATIONS

1. Strategic management is a means to achieve the
mission and objectives of the organization. Hence
any lack of realism or other limitation of the
mission or objectives would naturally get reflected
in the strategy.

2. Another problem is that strategic planning is a
complex and difficult task which requires people
with vision, expertise and commitment and
appropriate system.

3. An important limitation of strategic management is
that if the implementation of strategy is not
effective, even an excellent strategy would not
produce expected result

THANK YO
U

Anda mungkin juga menyukai