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1. Strategic Management
Moti T.

2. What is Strategic Management?
2
Strategic Mgt: The set of decisions and
actions that result in the formulation
and implementation of plans designed to
achieve a company’s objectives.

3. Definitions & Concepts of Strategic Planning
Strategic Management is concerned with:
•Making decisions about an organization’s
future direction for growth, renewal,
transformation and Implementing those
policies.
•The strategic management process can be
broken into two phases
•Strategic planning and
•Strategy implementation.

4. Definitions & Concepts of Strategic Planning
Strategic Planning is making decisions
about:
•Determining the organization’s mission;
•Formulating policies to guide the organization in
establishing objectives, choosing a strategy, and
implementing the chosen strategy;
•Establishing long-range and short-range objectives to
achieve the organization’s mission;
•Determining the strategies that are to be used in
achieving the organization’s mission

5. Definitions & Concepts of Strategic
Planning
Strategy Implementation is concerned with:
•Developing the organizational structure to
achieve the strategy;
•Identifying & quantifying the resources required
to support the achievement of the objectives.
•Ensuring that the activities necessary to
accomplish the strategy are performed
effectively.
•Monitoring the effectiveness of the strategy in
achieving the organization’s objectives.

6. Strategic Management Process
•The basic components of the models
used to analyze strategic
management are similar
•Strategic management is a process, a
flow of information through interrelated
stages of analysis toward the
achievement of some goal

7. Phases of
Strategic
Management
Process
•Formulation
•Implementation
•Control

8. Strategic Management Model
•Strategy Formulation
•Where do we want to be?
•Vision
•Mission
•Values
•Goals
•Objectives

9. VISION
•A vision statement details where the organization
aspires to go
Vision without Action is a Daydream
Action without Vision is a Nightmare
•Not Optional
•Stretch – 30+ Years
•8-10 Words in length
•Future State
•Brief and Memorable
•Inspiring and Challenging
•Descriptive of the Ideal

10. Vision Examples
•“Light the Fire Within”
•“A Safer Future for All Communities”
•“See the Mountains – Breathe Freely”
•To Be the Happiest Place on Earth
•To Be the World’s Best Quick Service Restaurant

11. Vision Levels of People
•Some people never see it. (Wanderers)
•Some people see it but never pursue it on their own.
(Followers)
•Some people see it and pursue it. (Achievers)
•Some people see it, pursue it and help others see it.
(Leaders)
John Maxwell, Developing The Leader Within You,
1993.

12. VISION EXERCISE
•“Haramaya University strives to be one of the leading
African Universities with international reputation by
2025.”

13. Mission Statement
•A mission statement defines the organization's
business, its objectives, and how it will reach
these objectives. 

14. MISSION
•What is our purpose?
•Describes current state
•Timeline is 3-5 Years
•Builds on our distinctive competencies
•Tends to focus on Core Business
•30-35 Words in length

15. MISSION EXERCISE
Mission:
“The Mission of Haramaya University is to produce
competent graduates in diverse fields of study,
undertake rigorous, problem solving and cutting edge
researches, disseminate knowledge and technologies,
and provide demand-driven and transformative
community services.”

16. VALUES
•Value statements are declarations about how the
organization wants to value their customers, suppliers
and be valued within their own internal community.
•These value statements explicitly define how people will
behave with each other in the organization.
•Guiding Principles
•Help establish Culture
•Part of Preserving the Core
•Core Ideology

17. GOAL
•Organizational goals are strategic objectives that a
company's management establishes to outline
expected outcomes and guide employees' efforts.
•Supports the Mission
•Deals with One Issue or Item of Focus
•Reflects a primary activity or strategic direction
•Describes the “To Be” State
•Encompasses a long period, i.e. at least 3 years

18. Goal Statements
•Goal
•“The goal of Haramaya University is to evolve as
an autonomous and independent (academic and
research institution) graduate and
research university with a competitive
national and international quality and
relevance standards in its academic, research
and community services endeavours.”

19. OBJECTIVES
•Add specificity beyond Goals
•Answer the questions
•What is to be accomplished?
•When?
•Should contain the SMART Elements

20. OBJECTIVES: SMART Model
•Specific
•Measurable
•Aggressive but Attainable
•Results-Oriented
•Timeframe

21. Strategic Objective Examples
•By June 30, 2022 achieve 75% rating on the DAD
service index from all stakeholders.
•Increase sales growth 6-8% in the next 5 years. (P&G)
•Cut corporate overhead costs by $30 million per year.
•Operate 6,000 stores by 2010 – up from 3,000 in the
year 2000.
•Reduce greenhouse gases by 10 percent (from a 1990-
2010)

22. Strategic Management Model
•Strategy Implementation
•Everyone is Responsible
•Most open-ended part of Strategic Mgmt
•People implement strategies not Organizations

23. Human Resource Rule
•Hire Smart
•Train Hard
•Manage Easy

24. Implementing the Plan
•Establish priorities
•Consider the available resources – IT, human, financial,
physical environment, etc, in determining the
implementation period and the strategies to be
implemented.
•It is not necessary to tackle all the strategies at the same
time – a phased approach is acceptable
•Seek technical support in the planning and implementation
processes if the expertise is not available in-house
•Acknowledge small gains in the process and share the
achievements
•Use the Plan as a marketing tool to seek support for
technical assistance and financial aid.

25. Monitoring & Evaluation
•Periodic review of the implementation process
•Obtain feedback from staff/clients/stakeholders
•Provide regular feedback to major stakeholders, including staff
•Document and communicate the lessons learnt
•Acknowledge and share results - achievements and failures
•Continuous monitoring and review of objectives
Remember that the Strategic Management process is a continuous
cycle. It does not end. The real objective is continual improvement!

26. Critical Tasks of Strategic Management
26
1Formulate the company’s mission
2Develop company profile, reflecting its internal conditions
3Assess company’s external environment
4Analyze company’s options
5Identify most desirable options
6Select long-term objectives and grand strategies
7Develop annual objectives and short-term strategies
8Implement the strategic choices
9Evaluate success of the strategic process

27. STRATEGIC ACTION PLANNING
SWOT Analysis
VISION
STRATEGIC AREAS FOR DEVELOPMENT
STRATEGIC OBJECTIVES
Strategic
Action 4
Strategic
Action 3
MISSION
Internal Environment
Strengths
Weaknesses
- Value systems
- Culture
- Staffing
- Support systems, operating environment
The long range objectives that
will drive the development
process and stretch the
organization to achieve them.
External Environment
Opportunities
Threats
- The changing environment
- The demand for new products
- The economic environment
- Availability of resources
Strategic
Action 2
Strategic
Action 1
EVALUATION/FEEDBACK
The reason for the
existence of the
organization &
establishes the values,
beliefs & guidelines for
the conduct of business

28. Strategic Management Model
•Scanning
•Where are we now?
•Strategy Formulation
•Where do we want to be?
•Strategy Implementation
•How do we get there?
•Measurement/Performance
•How do we measure our progress?

29. Strategic Management Model
•Scanning:
•Where are we now?
•Macro Analysis (STEP,
PESTEL, ETC.)
•Industry Analysis –
Competitive Intelligence
•SWOT Analysis
•Internal versus
External Elements

30. SCANNING:
Key Environmental Variables
•Macro Environment: STEP, PESTEL
•Task Environment: Industry
•Internal Environment: Focal Organization

31. STEP…
Socio-Cultural Variables
•Lifestyle Changes
•Career Expectations
•Regional Shifts in Population
•Life Expectancies
•More women in workforce
•Greater concern for fitness
•Postponement of family formation
•Increase in temporary workers

32. STEP…
Technological Variables
•Total Federal & Industry Spending for tech.
•Focus of Technological Efforts
•Patent Protection
•Wireless Communications
•Nanotechnology
•Productivity Improvements
•Genetic engineering

33. STEP…
Economic Variables
•GDP Trends
•Interest Rates
•Money Supply
•Inflation Rates
•Unemployment Levels
•Wage/Price Controls
•Energy Availability & Cost
•Disposable & Discretionary Income

34. STEP…
Political-Legal Variables
•Antimonopoly Regulations
•Tort Reform
•Environmental Protection Laws
•Taxation at local, state, federal levels
•Hiring and Promotion Laws
•Disabilities Act of 1990

35. PESTLE analysis

36. SWOT Analysis
•Internal Environment
•Strengths
•Weaknesses
•External Environment
•Opportunities
•Threats

37. The SWOT Analysis –
The Internal Environment
•Strengths
•Weaknesses
•Value systems
•Culture
•Staffing – human resource management
•Organizational Capital
•Support systems in the operating environment
•Financial capital

38. The SWOT Analysis –
The External Environment
•Opportunities & Threats
•The changing environment
•The demand for new products & competition
•The economic environment
•Availability of resources
•The culture of the population
•The regulatory framework