Professional Documents
Culture Documents
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Contents
1. Strategic and Business Planning
2. Three Key Strategic Questions
3. Composition of Strategic Management
4. Basic Elements of the Strategic Management Process
5. Strategic Management Model
6. Environmental Variables
7. Definition of Strategy Formulation
8. Definition of Vision
9. Definition of Mission
10. What Should be in a Mission Statement?
11. Definition of Objectives
12. Making Goal Setting Effective
13. Strategic Decision-Making Process
14. Definition of Strategy Implementation
15. Main Elements of Strategic Audit
Business planning
Business planning looks inward to organize available resources in
pursuit of the vision. Both levels of planning rely on definitive
objectives and quantitative measures of performance to guide and
monitor progress.
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o Strategy formulation
o Strategy implementation
o Evaluation and control
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6. Environmental Variables
Societal Environment PEST
o Composed of general Economical forces in environment
(Political -– Social - Technological
Task Environment
o Groups in environment that directly affect or are affected by
the organization’s operations
(Often called industry)
Structure
o The way an Organization is organized in terms of
communication, authority, and workflow
Organization Culture
o Collection of beliefs, expectations, and values learned and
shared by members and transmitted from one generation of
employees to another
Resources
o An asset, competency, process, skill, or knowledge controlled
by the corporation
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7. Definition of Strategy Formulation
Strategy Formulation
o The process of developing long-range plans to deal
effectively with environmental opportunities and threats in
light of the organization strengths and weaknesses
Composed of
o Vision/ Mission
o Objectives
o Strategies
o Policies
8. Definition of Vision
The vision provides a description of what the organization will evolve
into in the future. It states what the organization wants to become &
where it wants to go.
There is one universal rule of planning: You will never be greater than
the vision that guides you.
9. Definition of Mission
The purpose or reason for the organization’s existence and
What it must do to justify its existence
o Products & Service offered & Areas of specialization
o Nature & location of business's marketing territory
o Clientele served & Stakeholders & How we will satisfy them
o Core Values: Ethical, Professional, Social
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an infinitive that indicates a change in status,
such as to increase, to decrease, to prevent,
to eliminate
an identification of the problem or condition to
be changed
10.2 The Business Statement
o This statement outlines the business your
organization chooses in order to pursue its purpose.
o Specifically, you must answer, "What activity are we
going to do to accomplish our purpose?"
o Business statements often include the verb "to
provide" or link a purpose statement with the words
"by" or "through."
o A cautionary note: If the word "and" is in your
purpose or business statement, ask yourselves, "Are
we really committed to both ideas connected by the
word" and, "or have we simply not been able to
accept that one idea is more important?"
10.3 Statement of Values
o Organization's Core Values, Believes & Behavioral
Standards. There are three groups of values: ethical
values, Professional values, Public & society values
o Ethical values:
Integrity, Honesty & Impartiality etc.
o Professional values:
Maximizing stakeholders value added, Innovation,
Quality, Flexibility & Responsiveness, Partnership,
Continuous Improvement etc.
o Public & Society Values:
responsibilities towards our society, environment,
Social & Legal Responsibilities
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o Reputation
o Personal needs of management
11.2 Objectives should be
o Relevant
o Able to provide balance
o Practical
o Able to provide contingency
o Challenging
o Ranked in order of importance
o Measurable
o Clearly stated
o Schedulable
o Realistically stated
o Flexible
o Innovative
o Timely
o Limited in number
o Show growth
o Cost effective
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14. Definition of Strategy Implementation
The process of putting strategies and policies into action through the
development of
o Programs
o Budgets
o Procedures
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a. Societal
b. Task (Industry)
c. Opportunities and Threats (EFAS)
iv. Internal Environment
a. Structureb. Culture
b. Resources (Mkt, Fin, R&D, Etc.)
c. Strengths and Weaknesses (IFAS)
v. Analysis of Strategic Factors
a. SWOT Analysis (SFAS)
b. Review Mission and Objectives
vi. Strategic Alternatives and Recommendations
a. Alternatives
b. Recommended Strategy
vii. Implementation
a. Programs
b. Budgets
c. Procedures
viii. Evaluation and Control
a. Adequate Information System
b. Adequate Control Measures
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