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Wednesday, 12 March 2014

STRATEGIC MANAGEMENT PROCESS

A five-component approach to promote successful organizational performance

1. Vision formulation which leads to the statement of the Mission.
2. The mission is then converted into performance Objectives
3. To achieve objectives you develop Strategies
4. Strategy Implementation
5. Evaluation of performance


1.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
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

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                 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
4.         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


5. Evaluation of performance
*           review process
*           adjust mission
*           adjust objectives
*           adjust strategies

*           initiate corrective measures

For more theory and case studies onhttp://expertresearchers.blogspot.com

For Premium Academic and Professional Research:  jumachris85@gmail.com


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