STRATEGIC MANAGEMENT PROCESS

A five-component approach to promote successful organizational performance

1. Vision 2. 3. 4.

formulation which leads to the statement of the

Mission.

The mission is then converted into performance

Objectives

To achieve objectives you develop

Strategies

Strategy

Implementation

5. Evaluation of performance

1.The vision

formulation which leads to the statement of the * * * * * * * what is business?

Mission

Mission

what will be the business? it established long-term direction it needs to use simple terminology it needs to be inspirational buy in recognition of threats & opportunities entrepreneurial

Three Components of the mission statement

* * * the needs to be served by the company the targeted customer group how the company will provide the product/service

2. The mission is then converted into performance objectives

* * * * * * measurable statements specified performance specified time short-range objectives long-range objectives top-down rather than bottom-up

Two types of performance yardsticks

* * financial objectives strategic objectives

3.

To achieve objectives you develop * * * * * *

Strategies

action steps the concepts of unified and consistent strategies the moves and approaches used to achieve objectives dynamic continual review and refinement adjust to internal and external forces

Levels of strategies
*
* * * Corporate Business Functional Operating game plan for a diversified company game plan for single business strategy initiatives of one part of a business initiatives of key operating units

Factors affecting strategies

* * * * * * * * * society forces political and regulatory forces citizenship considerations the industry and competitive conditions opportunities and threats organizational strengths and weaknesses ethical considerations personal managerial ambitions company culture

Strategy making styles

* * * * Master Strategist Delegate-to-Others Collartorative Champion Strategy * * * * * * *
self- explanatory bottom-up middle approach bottom up with manager interest

4.

Implementation
making it happen structuring an organization budgeting motivating creating reward structures creating work environment information & reporting systems

Who does the strategy making and implementing?

ALL MANAGERS
5. Evaluation of performance
* * * * * review process adjust mission adjust objectives adjust strategies initiate corrective measures