Basic model of strategic management

1. Basic Model of Strategic Basic Model of Strategic
ManagementManagement
Alvin G. NiereAlvin G. Niere
M.B.A.-1M.B.A.-1
Misamis UniversityMisamis University

2. 4 Basic Elements of Strategic 4 Basic Elements of Strategic
Management Management
Environmental ScanningEnvironmental Scanning
Strategy FormulationStrategy Formulation
Strategy ImplementationStrategy Implementation
Evaluation and controlEvaluation and control

3. Basic Elements of Strategic Basic Elements of Strategic
management process management process
Environmental
Scanning
Strategy
Formulation
Strategy
Implementation
Evaluation
And
Control

4. Environmental ScanningEnvironmental Scanning
-It is the monitoring, evaluating, and It is the monitoring, evaluating, and
disseminating of information from the disseminating of information from the
external and internal environments to key external and internal environments to key
people within the organization.people within the organization.

5. Environmental ScanningEnvironmental Scanning
-Its main purpose is to identify external and Its main purpose is to identify external and
internal elements that will determine the internal elements that will determine the
future of the corporation.future of the corporation.
-The simplest way to conduct The simplest way to conduct
environmental scanning is through environmental scanning is through SWOT SWOT
Analysis. Analysis. (Strengths, Weaknesses, (Strengths, Weaknesses,
Opportunities and Threats)Opportunities and Threats)

6. External EnvironmentExternal Environment
-Consists of variables that are outside the Consists of variables that are outside the
organization.organization.
-These refer to the opportunities and These refer to the opportunities and
threats.threats.

7. Internal EnvironmentInternal Environment
-Consists of variables that are within the Consists of variables that are within the
organization itself.organization itself.
-They are the strengths and weaknesses of They are the strengths and weaknesses of
the corporation.the corporation.
-They include corporation’s structure, They include corporation’s structure,
culture and resources.culture and resources.

8. Strategy FormulationStrategy Formulation
-It is the development of long range plans.It is the development of long range plans.
-It includes defining corporate mission, It includes defining corporate mission,
specifying achievable objectives, specifying achievable objectives,
developing strategies and setting policy developing strategies and setting policy
guidelines.guidelines.

9. MissionMission
-It is the purpose or reason for the It is the purpose or reason for the
organization’s existence.organization’s existence.
-It tells what the company is providing for It tells what the company is providing for
the society.the society.

10. ObjectivesObjectives
-These are end results of planned activity.These are end results of planned activity.
-It tells what is to be accomplished.It tells what is to be accomplished.

11. StrategiesStrategies
- It states how the corporation will achieve - It states how the corporation will achieve
its mission and objectives.its mission and objectives.

12. PoliciesPolicies
- It is a broad guideline for decision making - It is a broad guideline for decision making
that links the formulation of a strategy with that links the formulation of a strategy with
its implementation.its implementation.

13. Strategy ImplementationStrategy Implementation
-Is a process by which strategies and Is a process by which strategies and
policies are put into action through the policies are put into action through the
development of programs, budgets and development of programs, budgets and
procedures.procedures.
-Sometimes referred to as operational Sometimes referred to as operational
planning.planning.

14. ProgramsPrograms
-Is a statement of the activities or steps Is a statement of the activities or steps
needed to accomplish a single use plan.needed to accomplish a single use plan.
-It makes a strategy action oriented.It makes a strategy action oriented.

15. BudgetsBudgets
-Is a statement of a corporation’s programs Is a statement of a corporation’s programs
in terms of dollars.in terms of dollars.
-It lists the detailed cost of each program.It lists the detailed cost of each program.

16. ProceduresProcedures
-Sometimes termed as Standard Operating Sometimes termed as Standard Operating
Procedures (SOP)Procedures (SOP)
-It is a sequential steps or techniques that It is a sequential steps or techniques that
describe in detail how a particular task or describe in detail how a particular task or
job is to be done. job is to be done.

17. Evaluation and ControlEvaluation and Control
- Is a process in which corporate activities - Is a process in which corporate activities
and performance results are monitored so and performance results are monitored so
that actual performance can be compared that actual performance can be compared
with desired performance.with desired performance.

18. PerformancePerformance
-It is the end result of activities.It is the end result of activities.
-It includes the actual outcomes of the It includes the actual outcomes of the
strategic management process.strategic management process.

19. Triggering EventsTriggering Events
- Is something that acts as a stimulus for a - Is something that acts as a stimulus for a
change in strategy.change in strategy.