The Strategic Management Process

Formulation, Implementation and EvaluationBy Ndikhaye Netshiozwi

Hypothesis

If a business has a proper strategic management process in place, then its activities will yield profitability and growth.

Introduction

What is a business without SMP?

All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun Tzu

Strategy

According to Wikipedia, Strategy is a general, nu-detailed, long-term plan of action, to achieve a complicated goal.

Strategy

According to Wikipedia, Strategy is a general, un-detailed, long-term plan of action, to achieve a complicated goal.

Three levels of strategy

Corporate strategy

Business strategy

Operational strategy

Why is strategy important?

Provide direction and focus for departments and all employees.

Specify results that the business needs to achieve.

Align business activities with business goals.

Have a clear display of the businesss future.

Strategic Management Process

The process making choices and decisions that will enable the business to achieve its goals and to performance well.

Strategic Management Process

Formulation

If you fail to plan, you are planning to fail! --Benjamin Franklin

Formulation

Strategy formulation is the process of defining mission of the business, objectives, and selecting other options that can be used as the strategy of the business.

Formulation

Key Terms in Strategic Management

Vision Statement

Mission Statements

External Opportunities and Threats

Internal Strengths and Weaknesses

Annual Objectives

Policies

Long-term Objectives

Strategies

Implementation

There's only one growth strategy: work hard. -- William Hague

Five reasons why strategy fail

Just planning

Partial commitment

Wrong people

Ignoring details

Lack of resources

Evaluation

This is a process of continuously monitoring the businesss progress toward its long-term goals and objectives.

Evaluation

Managers should ask:Revising strategy?

Problem areas?

Evaluating:Review

Measure

Correct

Rumelt's Evaluation Criteria

Consistency

Consonance

Advantage

Feasibility

Benefits of Evaluation

Provide direction

Provide guidance

Inspire confidence

Strategic Decision Makers

Chief Executive Officer (CEO)

Board of Directors

Department Managers

Supervisors

Decision Making through Strategy

Strategic decisions differ from operational and tactical decisions in matters of scope and time frame.

Conclusion

Without SMP, it will be hard for business to see success.

A strategy is not what you wish would happen. It is a set of practical actions for moving forward. Richard Rumelt

Thank you

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Click to edit the outline text formatSecond Outline LevelThird Outline LevelFourth Outline LevelFifth Outline LevelSixth Outline LevelSeventh Outline LevelEighth Outline Level

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