STRATEGIC MANAGEMENT PROCESS

A five-component approach to promote successful organizational performance

The vision formulation which leads to the statement of the Mission

Mission what is business?

* what will be the business?

* it established long-term direction

* it needs to use simple terminology

* it needs to be inspirational buy in

* recognition of threats & opportunities

* entrepreneurial

Three Components of the mission statement

the needs to be served by the company

* the targeted customer group

* how the company will provide the product/service

The mission is then converted into performance objectives

* measurable statements

* specified performance

* specified time

* short-range objectives

* long-range objectives

* top-down rather than bottom-up

Two types of performance yardsticks

* financial objectives

* strategic objectives

To achieve objectives you develop Strategies

* action steps

* the concepts of unified and consistent strategies

* the moves and approaches used to achieve objectives

* dynamic

* continual review and refinement

* adjust to internal and external forces

Levels of strategies

Corporate game plan for a diversified company

Business game plan for single business

* Functional strategy initiatives of one part of a business

Operating initiatives of key operating units

Factors affecting strategies

society forces

* political and regulatory forces

* citizenship considerations

* the industry and competitive conditions

* opportunities and threats

* organizational strengths and weaknesses

* ethical considerations

* personal managerial ambitions

* company culture

Strategy making styles

* Master Strategist self- explanatory

Delegate-to-Others bottom-up

Collartorative middle approach

Champion bottom up with manager interest

Strategy Implementation

* making it happen

* structuring an organization

* budgeting

* motivating

* creating reward structures

* creating work environment

* information & reporting systems

Who does the strategy making

and implementing?

All Managers

Evaluation of performance

review process

adjust mission

adjust objectives

adjust strategies

initiate corrective measures