STRATEGIC MANAGEMENT

PROCESS
Step: I ANALYSIS OF EXISTING MISSION &
GOALS
• Initial start – domestic firm
• Transform into international co.
• Goes on adding new products in portfolio
• And/or adding new countries
• New mission for new product/country
• E.g. J&J
 Step II: Organizational Analysis
• Global co. has subsidiaries
• Independent & autonomous
• Can formulate own strategies; controlled by
headquarters
• Aspects to be considered
– Organization structure
– Marketing
– Production
– Finance
– HR
Step: III International Envt. Analysis
• To assess opportunities/threats
• Using strengths exploit opportunities
• E.g. Cavan Case
• International envt. Includes
– Political legal factors
– Economic factors
– Technological factors
– Socio-cultural factors
• Step IV: formulation of corpt. level strategies
• Step V: formulation of unit level strategies
• Step VI: Selection of best among the
alternative strategies
 Step IV: Formulation & Selection
• Form’n & sel’n are intertwined in each other
• f/w and b/w linkage
• f/w: deals with org’nal activities; structure,
leadership, culture etc.
• b/w: influence of imp’n on strategy form’n,
deviation recognition, corrective measures
• Evaluate various alternatives
• Keeping in view org’nal & envt’tal analysis (SWOT)
 Step V: Implementation
• Put into action
• Idea about competitors strategy,
organization’s culture, change, skills and
capabilities of himself
 Step VI: Evaluation & Control
• Monitor & Evaluate
• To ensure that it functions properly

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