Strategic Management Notes
14/5/2013
STRATEGIC MANAGEMENT
Management Five functions of management–planning, organizing, motivating, staffing and controlling Strategy is a plan for the accomplishment of desired objectives. It is normally large in scope that includes the entire organization long term, normally several years cross functional in that it involves all the organization Dynamic - because it has to be capable of change Involves large amounts of organization resources Strategic management The process by which the firm manages the formulation, Implementation, evaluation and control of cross functional decisions that enable an organization to achieve its objectives.
Phases of Strategic management process Strategy formulation- consists of developing a vision and mission for the organization- what is our business, what do we do, Where do we do it, for whom, why who cares. Also identify strengths and weaknesses and opportunities and threats Strategy implementation– action phase- establish goals, device policies and allocate resources Strategy evaluation–compare where we wanted to be, or what we wanted to do and what we actually achieved Control – the actions we take if the differences discovered in the strategic evaluationphase are too large
The following components are considered necessary for a good complete mission statement
Strategy formulation Determine the business mission which requires answering the question ‘ what is our business’ The mission statement is often referred to as an enduring statement of purpose that distinguishes an organization from other similar enterprises. It is a statement declaring the reason for being It is an essential requirement to effectively establish objectives and to formulate strategy
• • • • • • • • • •
Customers who is it we intend to serve Product or services what it is we produce or do for Market : where we intend to compete. This can be as general or specific Technology what specific processes we intend to use to accomplish our
STRATEGIC MANAGEMENT
Management Five functions of management–planning, organizing, motivating, staffing and controlling Strategy is a plan for the accomplishment of desired objectives. It is normally large in scope that includes the entire organization long term, normally several years cross functional in that it involves all the organization Dynamic - because it has to be capable of change Involves large amounts of organization resources Strategic management The process by which the firm manages the formulation, Implementation, evaluation and control of cross functional decisions that enable an organization to achieve its objectives.
Phases of Strategic management process Strategy formulation- consists of developing a vision and mission for the organization- what is our business, what do we do, Where do we do it, for whom, why who cares. Also identify strengths and weaknesses and opportunities and threats Strategy implementation– action phase- establish goals, device policies and allocate resources Strategy evaluation–compare where we wanted to be, or what we wanted to do and what we actually achieved Control – the actions we take if the differences discovered in the strategic evaluationphase are too large
The following components are considered necessary for a good complete mission statement
Strategy formulation Determine the business mission which requires answering the question ‘ what is our business’ The mission statement is often referred to as an enduring statement of purpose that distinguishes an organization from other similar enterprises. It is a statement declaring the reason for being It is an essential requirement to effectively establish objectives and to formulate strategy
• • • • • • • • • •
Customers who is it we intend to serve Product or services what it is we produce or do for Market : where we intend to compete. This can be as general or specific Technology what specific processes we intend to use to accomplish our