Strategic ManagementStrategic ManagementBHRM 31124BHRM 31124

R.A.Ishanka ChathuraniLecturer (prob)Department of Human Resource ManagementFaculty of Commerce & Management StudiesUniversity of Kelaniya

Overview of Strategic Overview of Strategic Planning ProcessPlanning ProcessLearning Outcomes,•Describe the basic elements of the strategic management process•Understand the advantages and disadvantages of strategic planning model

Strategic Management Strategic Management ProcessProcess

Strategic Management Process consists of main three stages.

Understanding strategic positionStrategy choiceStrategy in to action

The Model of Strategic The Model of Strategic Management Management

Establishing Strategic Establishing Strategic DirectionsDirectionsThe first step of strategic

management process is to establish long-term direction for the organization. This includes defining corporate mission, goals and objectives.

Strategy FormulationStrategy FormulationThis is the second step of

strategic planning process. A firm’s strategy is a grand plan that is designed to achieve the corporate mission, goals and objectives.

Strategy Strategy Implementation Implementation Strategy implementation is the

third step of strategic management process and it is the process by which strategies and policies are put into action through the development programmes, budgets and procedures.

Strategic Controls and Strategic Controls and ReviewReviewReview and control is the final

step of strategic management process. It is the process by which performance results are monitored so that actual performance can be compared with desired performance.

Assumptions of strategic Assumptions of strategic planning modelplanning modelTop downCorporate firstBreakdownObjective evaluation

Advantages of strategic Advantages of strategic planning modelplanning modelIdentifies risksForces managers to thinkForces decision makingBetter controlPublic knowledgeTime horizonCo-ordinatesAllocates responsibility

Disadvantages of strategic Disadvantages of strategic planningplanningIt’s both cost and time

consumingLack of flexibilityLoss of initiative to enterprising

firmsThere is a excessive

formalization in the process

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