Explain the process of strategic management putting strategies into action.

SUBJECT: STRATEGIC
MANAGEMENT

LEARNING ACTIVITY SHEET NO.3

TOPIC: STRATEGIC MANAGEMENT COMPONENTS AND PROCESS

The strategic management process Is made up of 4 elements; the situation analysis, strategy
formulation, strategy implementation and strategy evaluation. These elements are steps that are
performed in order when developing a new strategic management plan.

Situation analysis this refers to a collection of methods that managers use to analyze an organization’s
internal and external environment to understand the organization’s capabilities, customers and business
environment. These situation analyses have 5 key components the customers, competitors, suppliers
and the government and legal issues. The analysis looks at what impact these factors may have on a
specific organization or business.

Strategy formulation have 10steps 1) write a vision statement 2) write a mission statement 3) define the
company profile 4) study the external environment 5) deciding the actions for accomplishing the mission
of the organization. 6) selecting long-term strategies which will be most effective. 7) deciding the actions
for accomplishing the mission of the organization. 8) deciding on short term strategies 9) deciding the
budget and resource allocation 10) implementation of the strategies

Strategy implementation- essentially it is the art of getting stuff done. The success of every organization
rest on its capacity to implement decisions and execute key processes efficiently, effectively and
consistently.

Strategic Evaluation is the final phase of strategic management. It involves analyzing your strategic plans
and assessing how well you have done against achieving the goals in your strategy. It is an important
tool for assessing how well your business has performed, relative to its goals. It is an important way to
reflect on achievements and shortcomings. It is also useful for reexamining the goals themselves which
may have been set at a different time under different circumstances.

PROCESS OF STRATEGIC MANAGEMENT

adpe 1. analyzing current situation -situation analysis and the external and internal analysis
2. deciding on strategies –

3. putting strategies on action

4, evaluating changing strategies

In strategic management the company strives to achieve companywide goals by integrating various
functions and concerned with both efficiency and effectiveness. I also cinder a broad range of
stakeholders because it puts stakeholders value creation first and entails multiple time horizons.

There are three types of strategy namely; business strategy, operational strategy and transformational
strategy. In busine ss strategy example; Cross sells more products. Some organizations focus on selling
additional products to the same customer. Like improving customer service and pricing strategies. In
operational strategy refers to the methods companies use to reach their objectives. By developing
operational strategies, a company can examine and implement effective and efficient systems for using
resources, personnel and the work process.

REVIEW QUESTIONS:

1. Enumerate the operations resources.

2. What is a transformational strategy?

3. Explain situation analysis.

PREPARED BY: PROF MADELENE S ABSALON, MBA