STRATEGIC MANAGEMENT PROCESS
A five-component approach to promote successful organizational performance
1. Vision 2. 3. 4.
formulation which leads to the statement of the
Mission.
The mission is then converted into performance
Objectives
To achieve objectives you develop
Strategies
Strategy I
mplementation
5. Evaluation of performance
1.The vision
formulation which leads to the statement of the * * * * * * * what is business?
Mission
Mission
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
2. 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 * * * the needs to be served by the company the targeted customer group how the company will provide the product/service
Two types of performance yardsticks
* * financial objectives strategic objectives
3.
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 Business Functional Operating game plan for a diversified company game plan for single business strategy initiatives of one part of a business 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 Delegate-to-Others Collartorative Champion Strategy * * * * * * *
self- explanatory bottom-up middle approach bottom up with manager interest
4.
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
5. Evaluation of performance
* * * * * review process adjust mission adjust objectives adjust strategies initiate corrective measures