CHAPTER 1

STRATEGIC MANAGEMENT

Is a process of creating a strategy? It includes the strategic process which is primary objective is to
organize its policies, priorities and success

The Strategic Management Process

Strategic analysis – ability of an organization to gather data to know its abilities also foresight and to
know the SWOT of company and competitor.

Strategic decision-making – it is related to strategic analysis. After the analysis next is decision making. It
is a cognitive process of competently.

Strategy formulation – it involves company development of strategies for acquiring its organization
competitiveness.

Strategy implementation – strategy put into action. It is implementation of e strategy they choose to set
its competitive advantage.

Strategic control – it is the monitoring of the organization performance. Its accomplishment its effect to
the company

Strategic planning – cycle of process for setting its objectives and goals for an organization to achieve.

Types of Strategic Planning

Medium long-range plan – 3 to 5 years plan

Annual/ yearly plan – short-term plan for only 1 year.

Organizational vision - Is a strategic direction to help the organization to achieve its goals.

Mission statement -It includes the organizations purpose, also includes what organization does, for
whom, and how it does.

Organizational goals and objectives – to put into action the mission statement is a goal and objectives.

Values and value system – values are the ideals of society toward its people of the group. These values
may be positive or negative.
Value system – includes values, dreams, and inspirations, philosophies, expectations, ethical practices,
leadership, and management style interest.

Organizational climate – is a regular and continuous pattern of attitude and behavior that employees
show in an organization.

Organizational culture – is a wide range of social phenomenon, includes behavior, beliefs, values, rituals,
ceremonies to define an organization character and norms.