Lesson-1-Strategic-Management-Process.pptx

Lesson-1-Strategic-Management-Process

1. STRATEGIC MANAGEMENT PROCESS Lesson 1

2. Unit Learning Outcomes At the end of the unit, you are expected to: a. Understand the strategic management process; b. Explain the importance of strategies in a business organization.

3. What is strategy?

4. What is strategy? The unifying theme that gives coherence and direction to the decisions of any organization. Involves goals and objectives that an organization needs to achieve to be successful in the marketplace.

5. Strategy comes from the Greek word strategos , which is formed from stratos which means “army” and ago which means “to lead”. Origin of Strategy Strategies – systematically planned course of actions for achievement of organizational objectives or goals.

6. Difference Between Planning & Strategy Strategy provides a long-term vision and direction, while planning focuses on the execution of that vision through detailed actions. Strategy is broad and high-level, whereas planning is detailed and operational. Strategy requires flexibility and adaptation to changes in the external environment, while planning is more focused on following a specific set of procedures and schedules. Strategy deals with long-term goals and positioning, while planning deals with short-term actions and resource allocation.

7. Example: To become the leading company in the industry known for its high-quality products at the most competitive prices. Increase market share. Conduct survey for customer preferences and analyze competitor pricing strategies. Vision Strategy Planning

8. Example: Apple, Inc. To create the best products on Earth, and to leave the world better than we found it. To maintain leadership in technology and innovation while expanding market reach and enhancing customer experience. Product development, reinforce the brand’s premium image, enhance logistics and supply chain operations to ensure timely production and distribution of products, adapt product offerings to local preferences. Vision Strategy Planning

9. What is strategic management?

10. What is strategic management? An art and science of formal process of determining long range objectives and formulating, implementing, and evaluating cross functional decisions and action plans based on the vision of the organization over an identified timeframe. Helps the organization achieve their goals within a dynamic and competitive environment. Consist of analysis, decisions, and actions an organization undertakes to create and sustain competitive advantages.

11. Understanding the Strategic Management Process

12. Stage 1: Planning An activity to see the future and strategize accordingly towards organization’s direction. Process of determining objectives and assessing how objectives can best be achieved in a timely manner given the firm’s present status amidst opportunities and challenges. An overview of the entire process is visualized and laid against timeframes.

13. Stage 2: Formulation The process of choosing the best course of action to achieve the goals and objectives to realize the vision. Strategy is chosen after considering the organizational strengths, limitations, potentials, and challenges.

14. Stage 3: Implementation Testing of planning and formulation. Meeting point of theory and reality. Translation of the chosen course of action and the performance of the specific activities based on a plan to achieve the set objectives.

15. Stage 4: Evaluation Allows those who involved in the process to investigate the effectiveness of the strategies set and the efficiency of implementation. Basis for current strategies, measuring performance, and taking corrective actions.

16. Feedback Assessments from stage to stage may eliminate setbacks that may delay the completion of the entire strategic management process. Requires the same amount of focus. Following-through addresses the feedback gathered and converts the collected information into a database on which corrective action can be based.

17. Why is strategic management important?