EoM - Lecture 05 - Strategic Management

Essentials of Management
Topic 5:
Strategic Management
© NCC Education Limited
Strategic Management Topic 5 – 5.2
Scope and Coverage
This topic will cover:

• What strategic management seeks to achieve
• Why it is important to organisations of all sizes
• The individual steps in the strategic management
process
• The components of a mission statement
• How to undertake SWOT and STEEPLE analyses

Learning Outcomes
By the end of this topic students will be able to:

• Discuss and explain the importance of strategic
management to an organisation in today’s business
environment
• Evaluate the range of activities that managers are
required to undertake as part of the strategic
management process
• Explain why every organisation should, ideally,
have a mission statement

What is Strategic Management?
“The set of managerial decisions and actions that

determines the long term direction of the organisation. It
contributes to the continuing performance and success
of an organisation”
Depending on the type of organisation that can mean
increased profitability, growth in sales, entering into new
markets, reducing reliance on financial debt, excelling
at customer service, increasing charitable donations or
organisational sustainability.


The comprehensive process of planning, implementing, and evaluating
the strategies that help an organization achieve its long-term
objectives and goals.
It involves analyzing the current situation, setting specific objectives,
formulating strategies to achieve those objectives, and executing plans
effectively.
This discipline requires assessing internal strengths and weaknesses,
analyzing external opportunities and threats, and aligning resources
and efforts toward the defined strategic direction.
Also involves continuous evaluation and adaptation to changing
circumstances to ensure the organization's sustained success and
competitiveness.

It's a process that aims to align an organization's strengths with

the opportunities in the marketplace to achieve its long-term
objectives.
1. Strategy Formulation: This is the process of defining an
organization's strategy, which involves analyzing the current
situation, setting goals, and determining actions to achieve those
goals.
2. Strategy Implementation: Once the strategy is
formulated, it needs to be put into action. This involves allocating
resources, designing the organizational structure, and ensuring
that the plans are effectively executed.

3. Evaluation and Control: Continuous assessment of the

implemented strategies is crucial to understand their
effectiveness. This step involves measuring performance against
the set goals and making adjustments if necessary.
4. Adaptation: In a dynamic business environment,
strategies need to be flexible and adaptable. Strategic
management involves monitoring changes in the market,
technology, and other relevant factors and adjusting strategies
accordingly.


5. Leadership and Decision-Making: Effective strategic management
often requires strong leadership. Leaders guide the strategic direction, inspire
teams, make critical decisions, and steer the organization toward its
objectives.
6. Competitive Advantage and Sustainability: One of the primary
goals of strategic management is to create and maintain a competitive
advantage. This involves leveraging an organization's strengths and
capabilities in a way that sets it apart from competitors. Moreover, strategic
management aims to ensure the organization's long-term sustainability in a
rapidly changing landscape.
Overall, strategic management is about creating a sustainable competitive
advantage, adapting to changes, and ensuring the long-term success and
viability of an organization.

Importance of Strategic Management

1. Guides Decision-Making: It provides a framework for making
informed decisions aligned with long-term goals, ensuring that
day-to-day actions support broader objectives.
2. Enhances Adaptability: In a dynamic business environment,

strategic management allows organizations to anticipate and
respond to changes effectively, fostering adaptability and
resilience.
3. Optimizes Resource Allocation: It helps in allocating

resources (financial, human, technological)
efficiently, maximizing their utilization towards
strategic priorities.


4. Creates Competitive Advantage: By understanding
strengths, weaknesses, opportunities, and threats, strategic
management enables organizations to leverage their unique
advantages, differentiating themselves in the market.
5. Facilitates Growth and Innovation: It encourages
innovation and creativity by fostering a culture that explores
new opportunities and challenges the status quo.
6. Improves Performance and Accountability: It
establishes clear objectives and performance metrics,
enabling better measurement of progress and accountability
within the organization.


7. Enhances Communication and Alignment: It aligns
various departments and teams, ensuring everyone works
towards common goals and facilitating better communication
across the organization.
8. Supports Long-Term Viability: Strategic management
helps in long-term planning, ensuring that organizations stay
relevant and sustainable in the face of evolving market
conditions and industry disruptions.
9. Manages Risk: It allows for a proactive approach to
risk management by identifying potential risks and developing
strategies to mitigate them.


10. Direction and Focus: It establishes a clear direction for the
organization by defining its vision, mission, and long-term objectives. This
clarity helps align efforts and resources toward common goals, reducing
wasted efforts and resources on conflicting priorities.
11. Resource Allocation Optimization: It assists in allocating
resources – including financial, human, and technological assets –
in ways that best support strategic priorities. This optimization leads
to efficient resource utilization and maximizes the impact on
achieving objectives.
12. Risk Management: Through strategic management,
organizations can identify and manage risks more effectively. By
evaluating internal and external factors, it becomes possible to
anticipate potential threats and develop mitigation strategies.


13. Performance Improvement: Setting measurable goals and
key performance indicators (KPIs) facilitates monitoring and
evaluation. This evaluation helps in identifying areas for
improvement, allowing organizations to refine strategies and
enhance performance continuously.
14. Innovation and Growth: Strategic management fosters an
environment conducive to innovation. It encourages exploration of
new opportunities, markets, products, or services, driving
sustainable growth and evolution.
15. Alignment and Coordination: It aligns different
departments and functions within an organization toward common
objectives. This alignment fosters better communication,
collaboration, and coordination, enhancing overall efficiency and
effectiveness.


16. Long-Term Viability: By focusing on long-term strategies,
strategic management ensures that organizations not only survive
but thrive in the long run. It enables them to anticipate future trends,
plan for contingencies, and maintain relevance in changing market
conditions.
17. Leadership and Decision-Making: It supports effective
leadership by providing a structured approach for decision-making.
Strategic management equips leaders with data-driven insights to
make informed and calculated decisions for the organization's
benefit.
In essence, strategic management is crucial as it provides a
roadmap, fosters adaptability, drives innovation, optimizes
resources, and ensures an organization's long-term success in a
competitive and dynamic environment.

• Demonstrates clear leadership and gives direction

to an organisation
• Can help managers to overcome continually
changing situations
• Helps to coordinate an organisation’s departments,
units and functions, and focus on achieving goals
• Steers and influences the significant decisions that
managers make
• Appropriate for both for-profit and not-for-profit
organisations

The Strategic Management Process

The strategic management process is a

structured series of steps that organizations
follow to develop, implement, and evaluate
strategies to achieve their long-term goals.
The strategic management process typically

involves several key steps:


1. Establishing the Mission, Vision, and Values:
Define the organization's purpose (mission), its long-
term aspirations (vision), and the core principles
guiding its actions (values).
2. Analyzing the Internal Environment:
Conduct an assessment of the organization's internal
factors, including strengths and weaknesses. This
involves evaluating resources, capabilities, culture,
and operational processes.


3. Assessing the External Environment:
Analyze the external factors affecting the
organization, such as market trends, competition,
technological advancements, regulatory changes, and
economic conditions.
4. Setting Objectives and Goals:
Establish specific, measurable, achievable, relevant,
and time-bound (SMART) objectives aligned with the
organization's mission and vision.


5. Formulating Strategies:
Based on the internal and external analyses, develop strategies
to achieve the defined objectives. This involves identifying
competitive advantages, market positioning, growth strategies,
and risk mitigation plans.
6. Implementing the Strategies:
Allocate resources effectively to support the chosen strategies.
Align various departments and teams within the organization to
ensure coordinated efforts towards the common strategic
goals.


7. Executing the Strategies:
Develop detailed action plans outlining the specific
steps, timelines, responsibilities, and milestones
necessary to implement the strategies effectively.
8. Performance Measurement and Evaluation:
Establish metrics, key performance indicators (KPIs),
or benchmarks to track progress and evaluate
performance against the set objectives.


9. Feedback and Adjustment:
Regularly review performance, gather feedback, and
make necessary adjustments to strategies or
implementation approaches based on the evaluation.
10. Adaptation and Learning:
Foster a culture of continuous learning and
improvement. Adapt strategies based on changing
circumstances, market dynamics, or new opportunities
to stay relevant and competitive.


11. Review and Renewal:
Periodically review the entire strategic management
process to assess the effectiveness of strategies and
make adjustments as needed. Consider updating
strategies based on new goals or changes in the
business environment.
These steps are interrelated and often iterative,
allowing organizations to continuously refine their
strategies in response to evolving internal and external
factors.
Step 1 – Identifying the Current Mission,

Objectives and Strategies
• Identify the mission – the purpose and objectives of the

organisation
• Identify the goals in place
• Identify the strategies currently being pursued
Mission statement should clarify the reason for being in

business

Components of a Mission Statement
• Who are the organisation’s customers?

• What are the organisation’s major products or
services?
• What and where are the organisation’s main
markets?
• Is the organisation committed to growth and
financial stability?
• What is the organisation’s main competitive
advantage and core competencies?

A mission statement typically comprises several key components that

collectively define an organization's purpose, values, goals, and
direction. These components include:
1. Purpose and Scope:
Defines why the organization exists and its reason for being in
business. It outlines the primary objectives and the fundamental
purpose of the organization.
2. Core Values and Beliefs:
Articulates the fundamental principles and values that guide the
organization's decisions, behaviors, and actions. These values
represent the ethical and moral framework of the organization.


3. Target Audience or Stakeholders:
Specifies the primary groups or individuals the organization aims to serve or
impact. This can include customers, employees, communities, shareholders,
or other stakeholders.
4. Products, Services, or Offerings:
Describes the core products, services, or solutions provided by the
organization. It communicates what the organization offers and how it
addresses the needs of its target audience.
5. Market Position or Competitive Advantage:
Highlights the organization's unique position in the market or its competitive
advantages. It might include aspects that differentiate the organization from
its competitors.


6. Long-Term Vision or Aspirations:
Provides a forward-looking statement about the organization's desired future
state or long-term aspirations. It expresses where the organization aims to
be in the future.
7. Conciseness and Clarity:
A well-crafted mission statement is clear, concise, and easily
understandable. It avoids jargon and communicates the essence of the
organization succinctly.
8. Memorability and Inspirational Quality:
A strong mission statement is memorable and inspires stakeholders,
including employees and customers. It conveys a sense of purpose and
motivation.


9. Alignment with Goals and Actions:
Should be aligned with the organization's goals and objectives. It serves as a
guidepost for decision-making and strategic actions within the organization.
10. Timelessness and Adaptability:
While a mission statement should be enduring, it should also allow for
adaptability to changing environments and evolving organizational
strategies.
A well-crafted mission statement encompasses these components,

effectively communicating the organization's identity, purpose, values, and
objectives to internal and external stakeholders.

Step 2 – External Analysis
• Analyse the external

environment (conduct SWOT
and STEEPLE analyses)
• What major external factors will
impact business?
• What opportunities can be
exploited?
• What threats must be
countered?
• First part of a SWOT analysis


External analysis involves assessing factors outside an organization that can impact its
operations, strategies, and performance.
It helps organizations understand the opportunities and threats present in the external
environment.
Here are key components of external analysis:
1.Market Analysis:
o
Industry Trends: Evaluating trends, growth rates, and patterns within the
industry the organization operates in. This includes factors like market size,
market share, and potential for expansion or contraction.
o
Competitive Landscape: Assessing competitors' strengths, weaknesses,
strategies, market positioning, and their potential impact on the organization's
market share and performance.


2. Economic Factors:
o
Economic Conditions: Analyzing macroeconomic factors such as GDP trends,
inflation rates, interest rates, employment levels, and consumer spending
patterns that could influence the organization's business environment.
o
Global Markets: Considering global economic conditions, international trade
policies, currency exchange rates, and geopolitical factors that might affect
international operations or markets.
3. Technological Trends:
o
Technological Advancements: Evaluating emerging technologies, innovations,
and disruptions that could impact the industry or create opportunities for the
organization. This includes assessing technological adoption rates and the
potential for digital transformation.


4. Political and Legal Environment:
o
Regulatory Factors: Understanding governmental policies,
regulations, and legal frameworks that affect the industry. Changes
in regulations, trade policies, taxation, or government stability can
significantly impact business operations.
5. Social and Cultural Factors:
o
Demographic Trends: Analyzing population demographics,
cultural shifts, lifestyle changes, and consumer behavior.
Understanding societal values, preferences, and trends can
influence product demand and market strategies.


6. Environmental and Sustainability Factors:
o
Environmental Concerns: Considering environmental
regulations, sustainability initiatives, and consumer preferences for
eco-friendly products or practices. Assessing the impact of
environmental factors on operations and market perceptions.
7. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats):
o
Summarizing the findings from external analysis along with
internal assessments to identify an organization's strengths and
weaknesses relative to opportunities and threats in the external
environment.

STEEPLE Analysis
• Sociological – how is the population changing and
diversity? Changing customer demands and tastes.
•Societal trends, demographics, and cultural aspects.
Understanding this helps organizations adapt their
products, services, and strategies to meet the needs and
preferences of their target market
•An aging population can impact businesses in industries
such as healthcare, pharmaceuticals, and retirement
planning. Conversely, changes in consumer preferences
towards healthier lifestyles can create opportunities for
companies in the organic food or fitness industry.
STEEPLE Analysis
•Technological – how are the advances in technology
affecting business? Organizations need to stay updated
with technological trends to remain competitive.
•Advancements in technology, innovation, automation,
digitalization, and the rate of technological change. The rise
of artificial intelligence (AI) and automation can
revolutionize manufacturing processes, potentially reducing
labor costs but also raising concerns about job
displacement. Additionally, the adoption of blockchain
technology can transform industries like finance, supply
chain management, and healthcare.
STEEPLE Analysis
•Environmental –climate change, environmental
regulations, sustainability practices, carbon footprint.
Organizations need to consider their environmental impact
and adopt sustainable practices to mitigate risks and
maintain their social responsibility.
•Increasing awareness of climate change and environmental
sustainability has led to stricter regulations on carbon
emissions and waste management. Companies operating in
industries with high environmental impact, such as energy,
transportation, and manufacturing, face pressure to adopt
sustainable practices and reduce their ecological footprint.
STEEPLE Analysis
•Economical – inflation, exchange and interest rates and

disposable income. How do financial factors affect the
economy and businesses?
•Example: Inflation rates, interest rates, and GDP growth
can significantly impact consumer spending habits and
overall market demand. Economic downturns, such as
recessions, can lead to decreased consumer confidence
and reduced purchasing power, affecting businesses
across various sectors.

STEEPLE Analysis
• Political – local and national elections, change of political
leaders and rulers and how that changes Government
policies and impacts on business.
• Example: Changes in taxation policies, trade agreements,
or healthcare regulations can directly impact businesses'
operations and profitability. Political instability, such as civil
unrest or regime changes, can disrupt supply chains,
investments, and market stability, affecting both local and
global businesses.

STEEPLE Analysis
•Legal – how does the introduction of laws change work patterns,
organisational policies and procedures and lead to organisational
compliance? This includes employment laws, consumer protection
laws, intellectual property rights, health and safety regulations, and
industry-specific regulations. Compliance with legal requirements
is essential for organizations to avoid legal risks and penalties.
•Example: Industries like pharmaceuticals and healthcare are
subject to stringent regulations governing product safety, clinical
trials, and marketing practices. Data privacy laws, such as the
General Data Protection Regulation (GDPR), affect how
businesses handle customer data and conduct marketing
activities.

STEEPLE Analysis
•Ethical – why should ethical practices be adopted by business?
assessing the ethical standards and values of the organization
and its stakeholders. This includes ethical business practices,
corporate social responsibility (CSR), ethical sourcing, and
transparency in operations. Organizations need to uphold ethical
standards to build trust with stakeholders and maintain their
reputation.
•CSR initiatives, philanthropy, environmental sustainability, and
fair labor practices, can enhance a company's reputation and
brand image. Ethical dilemmas, such as concerns over product
safety, labor exploitation, or environmental degradation, can lead
to public scrutiny, legal action, and reputational damage.

Step 3 – Internal Analysis

 This involves evaluating an organization's internal resources, capabilities, culture,
and processes to understand its strengths and weaknesses.
 This assessment provides insights into the organization's current state and helps
identify areas for improvement or leverage.
 Here are key components of internal analysis:
1. Resource Assessment:
o
Financial Resources: Evaluating financial strengths and limitations, including
revenue streams, profitability, liquidity, and financial stability.
o
Human Resources: Assessing the skills, expertise, experience, and
capabilities of employees, as well as their alignment with organizational goals.
o
Physical Resources: Examining tangible assets like infrastructure, equipment,
technology, and facilities.


2. Capabilities and Core Competencies:
o
Identifying the organization's unique capabilities and core competencies that
provide competitive advantages. This includes skills, technologies, processes, or
intellectual property that sets the organization apart.
3. Organizational Structure and Culture:
o
Analyzing the organizational structure, hierarchy, communication channels,
decision-making processes, and cultural norms. Understanding the organizational
culture and its impact on operations and employee behavior is crucial.
4. Operational Processes and Efficiency:
o
Evaluating the efficiency of internal processes, workflows, supply chain
management, production methods, and operational procedures. Identifying areas
for improvement or streamlining processes.


5. Brand and Reputation:
o
Assessing the organization's brand equity, reputation, customer loyalty, and
market perception. Understanding how the organization is perceived by
customers, stakeholders, and the public.
6. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats):
o
Integrating the findings from internal analysis with insights from external
analysis to identify the organization's strengths and weaknesses in relation
to external opportunities and threats.
7. Performance Metrics and Key Performance Indicators (KPIs):
o
Using quantitative measures and KPIs to evaluate performance in various
areas such as sales, productivity, customer satisfaction, quality, and
innovation.


8. Benchmarking:
o
Comparing the organization's performance, practices, and
processes against industry benchmarks or best practices to
identify areas for improvement or areas where the organization
excels.
Internal analysis is crucial for strategic planning, as it helps
organizations leverage their strengths and address weaknesses.
Understanding internal dynamics allows for effective decision-
making, resource allocation, and the formulation of strategies that
align with organizational capabilities and goals.

• Clear assessment of the organisation’s

resources
• What are the strengths?
• What weaknesses exist?
• What are the core competencies?
• Second part of a SWOT analysis

Identifying the Organisation’s

Opportunities
Organisation’s Organisation’s Opportunities in

resources/capabilities opportunities the environment

Step 4 – Formulating Strategies
• Complete the SWOT and STEEPLE analyses

• Develop and evaluate strategic alternatives
• Select strategies that exploit strengths and
opportunities OR address weaknesses and threats
• Resultant strategies should provide a competitive
advantage over rivals


Formulating strategies involves the process of developing plans and
actions to achieve an organization's objectives based on insights
gained from internal and external analyses. Here's a step-by-step
breakdown:
1.Clarify Objectives:
o
Start by clearly defining the specific, measurable, achievable,
relevant, and time-bound (SMART) objectives that the strategies
aim to achieve. Objectives provide a clear direction for the
strategies.


2. SWOT Analysis Integration:
o
Integrate findings from both internal (strengths and weaknesses) and external
(opportunities and threats) analyses. This helps identify strategic areas to
capitalize on and areas that require improvement or mitigation.
3. Identify Strategic Alternatives:
o
Generate various strategic options or alternatives based on the organization's
strengths, opportunities, and market insights. This might involve growth
strategies, competitive strategies, diversification, innovation, or cost leadership.
4. Evaluate and Prioritize Strategies:
o
Assess the feasibility, risks, costs, and potential benefits of each strategic
alternative. Prioritize strategies that align with the organization's capabilities and
offer the best chance of achieving objectives.


5. Select the Best Strategy:
o
Choose the most appropriate strategy or combination of strategies that best align
with the organization's goals, resources, and competitive environment. This might
involve selecting a differentiation strategy, market expansion, or innovation
initiatives.
6. Develop Action Plans:
o
Create detailed action plans for implementing the chosen strategies. Outline
specific steps, timelines, responsibilities, resources required, and key milestones
to track progress.
7. Resource Allocation:
o
Allocate resources effectively to support the implementation of the chosen
strategies. This includes financial resources, human capital, technology, and other
necessary assets.


8. Risk Assessment and Mitigation:
o
Identify potential risks associated with the chosen strategies and develop
mitigation plans. Anticipating and addressing risks in advance can minimize
negative impacts on strategy execution.
9. Communicate and Align:
o
Ensure effective communication of the strategies across the organization.
Align various departments, teams, and stakeholders toward the common
strategic goals to foster collaboration and commitment.
10.Monitoring and Review:
o
Establish mechanisms to monitor progress, track performance against set
objectives, and review the effectiveness of implemented strategies regularly.
This allows for adjustments or modifications as needed.


Formulating effective strategies requires a
deep understanding of the organization's
internal capabilities, external environment, and
a systematic approach to align chosen
strategies with overarching objectives.
Flexibility and adaptability are essential to
adjust strategies in response to changing
circumstances and market dynamics.

Step 5 - Implementing Strategies

Implementing strategies involves translating formulated plans into action,
effectively executing the chosen strategies to achieve organizational objectives.
Breakdown of the implementation process:
1.Establish Clear Action Plans:
o
Develop detailed action plans outlining specific steps, tasks, timelines,
responsibilities, and resources required for each phase of strategy
implementation.
2.Communication and Alignment:
o
Ensure effective communication of the strategy, its objectives, and action
plans throughout the organization. Create alignment by engaging
employees, providing clarity, and securing buy-in from key stakeholders.


3. Resource Allocation and Mobilization:
o
Allocate resources (financial, human, technological) according to the action
plans. Mobilize the necessary resources to support the implementation of
strategies.
4. Create Cross-Functional Teams:
o
Formulate cross-functional teams or task forces to oversee and execute different
aspects of the strategy. Encourage collaboration and ensure coordination among
various departments or units involved.
5. Training and Development:
o
Provide necessary training and development programs to equip employees with
the skills, knowledge, and tools required to execute the strategies effectively.


6. Empowerment and Delegation:
o
Empower employees by delegating authority and responsibility. Encourage
autonomy and decision-making within defined boundaries to foster ownership
and commitment to the strategy.
7. Performance Measurement and KPIs:
o
Establish key performance indicators (KPIs) and metrics to measure progress and
track the success of strategy implementation. Regularly monitor and evaluate
performance against these benchmarks.
8. Feedback and Adaptation:
o
Encourage open communication channels for feedback from employees and
stakeholders involved in strategy implementation. Use this feedback to identify
challenges, make necessary adjustments, and adapt strategies if needed.


9. Change Management and Culture:
o
Manage organizational change effectively by addressing resistance, addressing
concerns, and promoting a culture that embraces change. Align the organizational
culture with the strategic objectives.
10.Leadership and Support:
o
Provide strong leadership support throughout the implementation process.
Leaders should champion the strategy, inspire teams, address obstacles, and
ensure that resources and support are available.
11. Continuous Monitoring and Improvement:
o
Continuously monitor the progress of strategy implementation. Identify areas for
improvement, celebrate successes, and make real-time adjustments to optimize
performance.


12.Celebrate Milestones and Successes:
o
Recognize and celebrate milestones achieved during the
implementation process. This boosts morale, motivates teams, and
reinforces commitment to the strategy.
Successful implementation of strategies requires a well-coordinated

effort involving effective leadership, clear communication, resource
allocation, employee engagement, adaptability, and a systematic
approach to monitoring and refining execution.

• A strategy is only as good as its implementation

• May require the recruitment of new people with
new skills
• Current employees may have to be transferred
• Top management leadership is essential

Step 6 - Evaluating Results

Evaluating results is a crucial step in the strategic management process, as it
allows organizations to assess the effectiveness of implemented strategies and
their alignment with predefined objectives. Breakdown of the process:
1.Establish Key Performance Indicators (KPIs):
o
Define specific metrics and KPIs aligned with the strategic objectives set
during the formulation phase. These indicators should be measurable,
quantifiable, and relevant to assess progress.
2.Data Collection and Analysis:
o
Collect relevant data and information related to the established KPIs. This
data might include financial metrics, operational statistics, customer
feedback, market share, employee engagement scores, etc.


3. Performance Measurement:
o
Measure actual performance against the predetermined KPIs. Compare
achieved results with the targets set during the strategy formulation phase.
4. Qualitative Assessment:
o
Alongside quantitative measures, conduct qualitative assessments by
gathering feedback from stakeholders, customers, employees, and other
relevant parties. Assess the qualitative impact of strategies on various aspects
of the organization.
5. SWOT Analysis:
o
Revisit the SWOT analysis, considering the updated information post-
implementation. Assess how the implemented strategies have influenced the
organization's strengths, weaknesses, opportunities, and threats.


6. Benchmarking and Comparative Analysis:
o
Benchmark the organization's performance against industry standards,
competitors, or best practices. Conduct comparative analyses to understand
where the organization stands relative to others.
7. Identify Successes and Challenges:
o
Identify areas where the organization has succeeded in achieving objectives
and where challenges or deviations from the plan exist. Understand the
reasons behind both successes and shortcomings.
8. Root Cause Analysis:
o
Investigate the root causes behind any deviations or unexpected outcomes.
Understand the factors contributing to success or hindering progress to
inform future decision-making.


9. Feedback and Lessons Learned:
o
Gather feedback from stakeholders involved in strategy implementation. Identify
lessons learned, insights gained, and best practices that can be applied to future
strategies.
10. Strategic Adjustment or Realignment:
o
Based on the evaluation findings, make informed decisions about whether
strategies need adjustment, realignment, or further refinement. Modify strategies
as necessary to address identified shortcomings or capitalize on successes.
11. Continuous Improvement:
o
Use evaluation results as a basis for continuous improvement. Establish a
feedback loop that feeds into future strategy formulation, ensuring that lessons
learned contribute to the organization's ongoing development.


12.Reporting and Communication:
o
Prepare comprehensive reports summarizing the evaluation
results. Communicate findings to stakeholders, leadership, and
relevant teams, highlighting achievements, areas for
improvement, and the path forward.
Evaluating results is an iterative process that informs future

decision-making, ensuring that organizations learn from their
experiences and continuously improve their strategies and
performance.

• How effective have the strategies been?

• Have they delivered the intended results?
• What adjustments, if any, are necessary?
• What can be learnt for future strategy
development?

Summary
• Effective strategies result in high organisational

performance
• Strategic management is important for organisations of all
sizes and in different sectors
• The strategic management process is an iterative one that
encompasses planning, implementation and evaluation
• A mission statement is a vital component for any
organisation
• SWOT and STEEPLE analyses underpin the strategic
management process

References
• Slide 5.6: Management eighth edition by Robbins, S.P. and
Coulter, M. (Pearson/Prentice-Hall) IBN: 978-0131439948 pp
182
• Slide 5.13: Management eighth edition by Robbins, S.P. and
Coulter, M. (Pearson/Prentice-Hall) IBN: 978-0131439948 pp
185

Strategic Management Topic 5 - 5.68
Topic 5 – Strategic Management
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Essentials of Management

Scope and Coverage

This topic will cover:

© NCC Education Limited

By the end of this topic students will be able to:

© NCC Education Limited

What is Strategic Management?

“The set of managerial decisions and actions that

© NCC Education Limited

What is Strategic Management?

© NCC Education Limited

What is Strategic Management?

It's a process that aims to align an organization's strengths with

© NCC Education Limited

What is Strategic Management?

3. Evaluation and Control: Continuous assessment of the

© NCC Education Limited

What is Strategic Management?

© NCC Education Limited

Importance of Strategic Management

2. Enhances Adaptability: In a dynamic business environment,

3. Optimizes Resource Allocation: It helps in allocating

© NCC Education Limited

Importance of Strategic Management

© NCC Education Limited

Importance of Strategic Management

© NCC Education Limited

Importance of Strategic Management

© NCC Education Limited

Importance of Strategic Management

© NCC Education Limited

Importance of Strategic Management

© NCC Education Limited

Importance of Strategic Management

• Demonstrates clear leadership and gives direction

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The Strategic Management Process

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The Strategic Management Process

The strategic management process is a

The strategic management process typically

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The Strategic Management Process

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The Strategic Management Process

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The Strategic Management Process

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The Strategic Management Process

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The Strategic Management Process

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The Strategic Management Process

Step 1 – Identifying the Current Mission,

• Identify the mission – the purpose and objectives of the

Mission statement should clarify the reason for being in

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Components of a Mission Statement

• Who are the organisation’s customers?

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Components of a Mission Statement

A mission statement typically comprises several key components that

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