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    Strategic Management MODULE 1

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    kristine gonzaga
    Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a vision, identifying opportunities and threats, determining strengths and weaknesses, and generating alternative strategies. Strategy implementation employs crafted strategies to achieve goals through establishing objectives, policies, motivation, and resource allocation. Strategy evaluation applies monitoring and feedback to review strategies and performance and take corrective actions. Strategic management is an ongoing, dynamic process that creates and executes plans to enable organizations to achieve objectives and adapt to constant change.

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    Strategic Management MODULE 1

    Uploaded by

    kristine gonzaga
    60 views3 pages
    Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a vision, identifying opportunities and threats, determining strengths and weaknesses, and generating alternative strategies. Strategy implementation employs crafted strategies to achieve goals through establishing objectives, policies, motivation, and resource allocation. Strategy evaluation applies monitoring and feedback to review strategies and performance and take corrective actions. Strategic management is an ongoing, dynamic process that creates and executes plans to enable organizations to achieve objectives and adapt to constant change.

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    Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a vision, identifying opportunities and threats, determining strengths and weaknesses, and generating alternative strategies. Strategy implementation employs crafted strategies to achieve goals through establishing objectives, policies, motivation, and resource allocation. Strategy evaluation applies monitoring and feedback to review strategies and performance and take corrective actions. Strategic management is an ongoing, dynamic process that creates and executes plans to enable organizations to achieve objectives and adapt to constant change.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views3 pages

    Strategic Management MODULE 1

    Uploaded by

    kristine gonzaga
    Strategic management involves three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a vision, identifying opportunities and threats, determining strengths and weaknesses, and generating alternative strategies. Strategy implementation employs crafted strategies to achieve goals through establishing objectives, policies, motivation, and resource allocation. Strategy evaluation applies monitoring and feedback to review strategies and performance and take corrective actions. Strategic management is an ongoing, dynamic process that creates and executes plans to enable organizations to achieve objectives and adapt to constant change.

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    Strategic Management MODULE 1

    The Nature of Strategic Management

    What is Strategic Management?


    •An art and science of creating, executing and evaluating cross functional decisions to enable the
    organization to achieve its goals and objectives ( David, F. 2013 )
    •A continuous process of strategy creation.

    Strategic management is often used synonymously to strategic planning where the later is usually used
    in the business world and the former in the academe.
    •The purpose of strategic management is to exploit and create new opportunities for tomorrow while
    long range planning tries to optimize for tomorrow the trends of today
    •A strategic plan is the company’s game plan

    3 Stages of Strategic Management Process


    1. Strategy formulation
    2.Strategy implementation
    3. Strategy evaluation

    Strategy Formulation -designing strategies on the business and corporate levels


    It includes;
     developing a Vision and a Mission;
     Identifying organization’s external opportunities and threats;
     determining internal strengths and weaknesses;
     establishing long term objectives;
     generating alternative strategies
     choosing the alternative to pursue
    Strategy Implementation - employing crafted strategies to achieve organizational set goals and
    objectives.
    - It requires the organization to establish annual objectives, devise policies, motivate employees and
    allocate resources so that formulated strategies can be executed

    - Strategy implementation is called the action stage of strategic management;

    - Often considered as the most difficult stage of strategic management as it requires personal discipline,
    commitment and sacrifice from everyonene.

    - Interpersonal skill is critical for successful strategy implementation


    - All employees and managers in an organization must decide on answers to
    questions such as:

     What must we do implement our part in the organization’s strategy?


     How best can we get the job done?

    Strategy Evaluation - application of an appropriate monitoring and feedback system.


    Fundamental strategy evaluation activities are:
    a. Review external and internal factors that are bases of the current strategy adopted;
    b. Measuring performance
    c. Taking corrective actions
     Strategic management must be done at all levels or hierarchy of the organization;
     Fostering communication and interaction among managers and employees will help the
    organization function as a competitive team.
    Organizations must be “adept at adapting” or they will not survive. Successful organizations effectively
    managed change, continuously adapting their structure, strategies, systems, products and culture.

    As Waterman has noted: In today’s business environment, the only constant is change.

    The Strategic-Management Model

    Strategic- management process can be best studied using a model.


    Any model does not guarantee success but it does represent a clear and practical approach for
    formulating, implementing and evaluating strategies.
    Three important question to answer in developing a strategic plan –
     Where are we now?
     Where do we want to go?
     How are we going to get there?
    Where are we now?
    Start from identifying the organizations Vision, mission, objectives and strategies.
    Firm’ s current situation and condition will dictate a particular course of action.
     The strategic management process is dynamic and continuous. A change in any component will
    affect the whole organization.
     The process should be performed on a continual basis’.
     In the model – business ethics, social responsibility, environmental sustainability issues impact
    all activities
     Good communication and feedback are needed throughout the strategic- management process.
    Financial Benefits:
     Significant increase in sales, profitability and productivity;
     High performing firms doing strategic planning are prepared for future
     fluctuations in external and internal environment
     Make informed decisions with good anticipations of short and long term consequences

    Non Financial Benefits

     Allows for identification, prioritization and exploitation of opportunities;


     Provides an objective view of management problems
     Represents a framework for improved coordination and control of activities
     It minimizes the effects of adverse condition and changes
     It allows major decisions to better support established objectives
     It allows more effective allocation of time and resources to identified opportunities
     It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc
    decisions
     It creates a framework for internal communication among personnel
     It helps integrate the behavior of individual into a total effort
     It provides a basis for clarifying individual responsibilities
     It encourages forward thinking
     It provides a cooperative, integrated and enthusiastic approach to tackling problems and
    opportunities
     It encourages favorable attitude toward change
     It gives a degree of discipline and formality to the management of busines

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