Strategic management

process

Strategic planning
Process of deciding in advance what should be accomplished and how it
should be accomplished. Thus it involves selecting the objectives and policies
and how to achieve them.
It is long term in nature
It is general
It covers a wide range of activities
Covers broad objectives and direction
Top management responsibility
Focus on planning and forecasting
Tactical plans
Intermediate plans
Time frame 2 to 3 years
Focus on coordination
Action plan for strategy
Operational plan
Short range plan
Time frame one year
Covers day to day work of various operations
Focus on control primarily

Strategy Vs tactics
Strategy

tactics

Master plans developed by

top management. Not
generally delegated below
certain level in management
hierarchy

Employed by and related to

lower levels of management

Focus is long term

Focus is short term

Uncertainty level is high. Lot

of information to be obtained
from various sources

Decisions are more certain

taken within the framework
of strategy

Affect various parts of the

organization in a significant
way

The reach is limited to only

specific segments in the
organization

Levels of strategic planning

Corporate level strategic planning
Overall character and purpose of the organization
Which business to enter and which business to leave
Allocation of resources
Business level strategic planning
Concerned with how to manage the operations of a business unit under
the corporate
An SBU is a distinct unit with its own competitors
The SBU head formulate strategy and get the approval of corporate
head
Strategies aimed at deciding competitive advantage, responses to
changing market conditions
Allocating resources within the business unit and coordinating functional
level strtegies developed by functional managers
Functional level strategic planning
Determining policies and procedures for different functions of an
organization
These are developed by functional managers and reviewed by business
unit heads

Strategic intent
Consists of
A broad vision of what the organization should be
Organizations mission
Strategic objectives and specific goals to be pursued relentlessly
The plans that are developed to accomplish the intentions
Most
integrativ
e

Fewest in
number

Vision
Mission
Objectives
Goals

Most
specific

plans

Greatest in
number

Vision
A future that promises
Clarity of a vivid description of what the company wants to be
Achievable
Reachable
To be read understood and preferably memorized quickly
Built around certain core values which are shared
Create a mental image of the vision

Mission
Purpose for which the organization is founded
Why it exists, the nature of business and the customers it seeks to serve
and satisfy
Unlikely that it can ever be achieved completely
Components of Mission
Customers
Products or services
Markets
Technology
Concern for survival and growth
Philosophy- basic beliefs, values, aspirations and ethical priorities
Concern for employees
Concern for public image

Policies- A guiding principle used to set a direction in an

organisation
An employee policy is a business rule you put in your
Employee Handbook. This includes things like no smoking, no
drinking, and other business practices like dress codes, vacation
policy, or your companys codes of conduct. Clearly, employee
policies
arepolicies
human are
resource
policies
about your
rulesyour
used
Employee
used to
set a standard
foroffice
projecting
to
support image
your management
philosophies.
company
or to communicate
regulations that apply to all
personnel. What kind of image are you projecting as a
company? They typically come from top management as a result
of interpreting the company mission and vision statements, laws
and regulations, or industry standards and practices.
Procedure
A procedure is a particular way of accomplishing something. It
should be designed as a series of steps to be followed as a
consistent and repetitive approach or cycle to accomplish an
end result. Once complete, you will have a set of established
methods for conducting the business of your organization, which will
come in handy for training, process auditing, process improvement,
or compliance initiatives.
Procedures provide a platform for implementing the consistency
needed to decrease process variation, which increases

Difference between GOALS and OBJECTIVES

Goals are broad objectives are narrow.
Goals are general intentions; objectives are precise.
Goals are intangible; objectives are tangible.
Goals are abstract; objectives are concrete.
Goals can't be validated as is; objectives can be validated.

What is a Vision Statement?

A Vision Statement:
Defines the optimal desired future state - the mental picture - of what an
organization wants to achieve over time;
Provides guidance and inspiration as to what an organization is focused on
achieving in five, ten, or more years;
Functions as the "north star" - it is what all employees understand their work
every day ultimately contributes towards accomplishing over the long term;
and,
Is written succinctly in an inspirational manner that makes it easy for all
employees to repeat it at any given time
What is a Mission Statement?
A Mission statement:
Defines the present state or purpose of an organization;
Answers three questions about why an organization exists WHAT it does;
WHO it does it for; and
HOW it does what it does.