STRATEGIC IMPLEMENTATION

AND INTRODUCTION TO
ENVIRONMENTAL SCANNING
WEEK 7
BMC-2
STRATEGIC MANAGEMENT AND TQM IN TM & HM
LEARNING OUTCOMES

1.Define Strategic Implementation

2.Describe the Environmental Scanning
process.
 POLICY
• Policies include guidelines, rules, and procedures
established to support efforts to achieve stated
objectives. Policies are most often stated in terms
of management, marketing, finance/accounting,
production/operations, research and development,
and computer information systems activities.
Examples: admission policy, recruitment policy
 STRATEGY
IMPLEMENTATION

• Strategy implementation is a
process by which strategies and
policies are put into action through
the development of programs,
budgets, and procedures.
•
 STRATEGY IMPLEMENTATION TECHNIQUES AND
BEST PRACTICES

1. Ensure that plans are aligned with the organizational mission, vision, and values
2. Build an effective leadership team
3. Create an implementation plan
4. Allocate budgetary resources
5. Assign objectives and responsibilities
6. Align structures and processes
7. Align people
8. Communicate the strategy
9. Review and report on progress
10. Make strategic adjustments as necessary
11. Develop an organizational culture that supports the strategy
 BUDGETING PROCEDURE
• Budgeting is the process of allocating resources to be employed to
achieve objectives. A budget is a formal statement of estimated income
and expenses based on future plans and objectives. The budget should
be directly linked to strategy implementation.

• Procedures sometimes termed Standard Operating Procedures (SOP),

are a system of sequential steps or techniques that describe in detail how
a particular task or job is to be done.
 EVALUATION CONTROL

• Strategic evaluation and control is the process of determining the

effectiveness of a given strategy in achieving the organizational
objectives and taking corrective actions whenever required.

• Performance is the end result of activities; it includes the outcomes of

the strategic management process.

“Good strategy and good strategy execution are the most trustworthy
signs of good management.”
ENVIRONMENTAL
SCANNING
 ENVIRONMENTAL SCANNING

• Is the process of gathering information about events and their relationships

within an organization's internal and external environments to detect potential
threats toward its future direction of the organization. Environmental Scanning is
the monitoring, evaluation, and dissemination of information relevant to the
organizational development of strategy.
 WHY IS ENVIRONMENTAL SCANNING
IMPORTANT TO A BUSINESS?

• It helps with the identification of a number of broad

factors and issues that will have a significant impact on
businesses and their plans for the future.
 ENVIRONMENTAL SCANNING HELPS TO:

• Aids in anticipating changes

• Answers the question, “Where are we now?”
• Provides a starting point for businesses’ planning of goals,
objectives, and
• actions that answer the question, “Where do we want to be?”
 GOAL OF ENVIRONMENTAL SCANNING

• The goal of any environmental scanning process is to

successfully identify the key forces driving change within the
contextual environment of the organization.
SCANNING IN A BUSINESS ENVIRONMENT
VARIOUS TYPES OF ENVIRONMENTAL
SCANNING
 SWOT ANALYSIS
SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and
for identifying both the Opportunities open to you and the Threats you face. The SWOT
Analysis is sometimes called Internal-External Analysis. Helps you to craft a strategy that
distinguishes you from your competitors. When carrying out your SWOT Analysis, be realistic
and rigorous. Example Self Analysis using SWOT
 SOURCES OF INFORMATION FOR
SWOT
• Interviews with business officers, owners, managers
• National and local newspapers
• Trade publications
• Business magazines
• Observations
• Research findings
• Input from professional organizations
 INSIDE-OUT ANALYSIS

• An Inside-Out approach seeks to start with internal

capabilities and match external opportunities to those
capabilities.
 FOUR STEPS IN SWOT ANALYSIS
STEP 1: Set Strategic Goals STEP 2: Environmental Analysis
• Long-term goals derived directly from the
• This step involves scanning the environment
organization’s mission statement. These goals are
often related to profitability, growth, market share,
for threats and opportunities. A threat is any
employment, and diversification. Prior to the
unfavorable situation in your organization’s
formulation of the strategy, you need to perform a
environment. Threats may include new
thorough analysis regarding the current and future
substitute products, new competitors, a
business position in terms of two dimensions:
decline in market share, new government
• the non-controllable forces, which are associated
regulations, imports, changing consumer
with the external environment and which
tastes and preferences and hostile
determine the industry trends and market
takeovers. An opportunity is any favorable
opportunities; situation in your organization’s environment
• the internal competencies residing in your firm, and may be new markets or new product
which determine the unique competitive launching.
leadership potential that it could mobilize in order
to establish business superiority against
competitors
 FOUR STEPS IN SWOT ANALYSIS
STEP 3: Organizational Analysis STEP 4: Formulate Business Strategy
• This step is for planners to better • This final step involves matching the
understand their own company's environmental threats and opportunities
strengths and weaknesses. A strength with organizational strengths and
is a resource or capacity your weaknesses. The matching process is the
organization can use effectively to most important part in strategy
achieve its objectives. Ex. surplus cash, formulation.
a dedicated work force, talented
management, lack of competition. A
weakness is a limitation, fault or defect
in the organization that will keep it from
achieving its objectives.
THANK YOU!