TOPIC 1: STRATEGY AND STRATEGIC MANAGEMENT

The word “strategy” is a military concept. It comes from the Greek word Strategos with
component words; “stratos” which means an army and “ago” which means to lead. In other
words, to lead an army. Just like in war, the purpose of strategic management is to use one’s
strengths and exploit the weaknesses of the enemy.

Strategic Management is defined as the science of creating, executing, and evaluating cross-
functional decisions to enable an organization to achieve its goals and objectives. It is a
continuous process which includes strategic analysis and decision-making, strategy formulation
and implementation, and strategy control.

Strategic analysis consist of a systematic evaluation of variables currently existing in the

external and internal environments while Strategic decision-making is deliberately bringing
together the right resources for the right markets at the right time. Strategy formulation is
designing strategies on the business and corporate levels. Strategy implementation is
employing these crafted strategies to achieve organizational set goals and objectives while
strategic control is the application of an appropriate monitoring and feedback system.

The Strategic Management Process has the following stages:

1. Strategy formulation. The activities under this stage include; development of a vision and a
mission, identifying an organization’s external opportunities and threats, determining
internal strengths and weaknesses, establishing long-term objectives, making alternative
strategies, and choosing particular strategies to pursue.

2. Strategy implementation, on the other hand, involves establishing annual objectives, creating
policies, motivating employees, and allocating resources so that formulated strategies can be
implemented.
3. Strategy Evaluation is intended to know what strategies are not working so that adjustments
can be made. The basic activities include; reviewing external and internal factors that are the
basis for current strategies, measuring performance, and taking corrective actions

pp. 2-8 of your textbook, Strategic Management Made Simple, 1st Edition, Philippine Copyright
2015, Young, Felina C.