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The document discusses the strategic management process, which consists of three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a mission and vision, identifying external opportunities and threats, determining internal strengths and weaknesses. Strategy implementation refers to executing plans and strategies to achieve long-term goals by developing supportive culture, structure, and linking compensation to performance. Strategy evaluation determines the effectiveness of the strategy and requires examining strategy bases, comparing expected to actual results, and taking corrective actions.

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110 views

SCRIPT

The document discusses the strategic management process, which consists of three main stages: strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation involves developing a mission and vision, identifying external opportunities and threats, determining internal strengths and weaknesses. Strategy implementation refers to executing plans and strategies to achieve long-term goals by developing supportive culture, structure, and linking compensation to performance. Strategy evaluation determines the effectiveness of the strategy and requires examining strategy bases, comparing expected to actual results, and taking corrective actions.

Uploaded by

Rachel Ann Razonable
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Good afternoon, everyone. So our next topic is strategic management or the strategic
management process. So strategic process is basically a sequential set analyses and choices that
can increase the likelihood that an organization will choose ‘good strategy’, that is, that
generates competitive advantages. Stages of strategic management basically has or consist of
three stages. We have strategy formulation, strategy implementation and strategy evaluation.
Next slide po….

 First, let’s talk about strategy formulation which includes developing a mission and vision,
so when we speak of your strategic vision it talks about the future path of the business or
where is the business going. A mission on the other hand of course focuses on current
business activities, who we are, what do we do. So that is the question or questions that
would be answered by the mission. In strategy formulation you also identify external
opportunities and threats. You also determine your internal strengths and weaknesses. We
call it your environmental scanning. So when you say environmental scanning you look at
the threats or possible threats of the business but you have to determine also your
opportunities, what else? Your strengths. What are the strengths of the business? It could
be excellent customer service that could be a strength. What could be the weaknesses of
the business maybe poor management, that could be a weakness, okay. So you also
establish long- term objectives, you generate alternative strategies and you now choose a
particular strategy to pursue.
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 Strategy formulation issues include deciding what new businesses to enter, what businesses
to abandon, (so for example if you are in restaurant company so if a certain menu is not
favored or it is not preferred by your costumers why do you keep on cooking, it diba?) So
how to allocate resources, whether to expand operations or diversify, whether to enter
international markets, whether to merge or form a joint venture, and of course this is very
important you have to avoid a hostile takeover. (it occur when an acquiring company
attempts to take over a target company against the wishes of the target company’s
management)
Next slide po…
 So the second strategy is strategy implementation. It refers to the process of executing
plans and strategies. These processes aim to achieve long-term goals within an
organization. It integrates new processes into the structure of an organization.
So strategy implementation basically includes developing a strategy supportive culture. You
create an effective organizational structure. What else? You redirect marketing efforts, of
course you have to prepare your budgets as well. You develop and utilize information
system and you link employees’ compensation to organizational performance. So that is in
your strategy implementation. In addition to that (next slide po)
If strategy formulation tackles the “what” and “why” of the activities of the organization,
strategy implementation is all about “how” the activities will be carried out, “who” will
perform them, “when” and how often they will be performed, and “where” the activities
will be conducted. Basically, Strategy implementation often is called the “action stage” of
strategic management. Why? Because in this stage, managers and employees will already
do the job to fulfill the plans in the business. They will put forward your formulated
strategies into action so it is often to be the most difficult stage in strategic management
because it requires personal discipline, commitment and of course sacrifice. Next slide po…
 And last is the strategy evaluation, the final stage in strategic management. is defined as the
process of determining the effectiveness of a given strategy in achieving the organizational
objectives and taking corrective action wherever required.
So in this final stage, we will already know if the implemented strategy is effective or not.
Managers or strategists have to ensure that the implemented strategy is evaluated
accordingly and reviewed periodically, say every half yearly or quarterly. The evaluation
criteria and expected performance are benchmarked with the standards of the industry or
firm. Comparisons are made with other competitors or firms or in time dimension like
against the previous year. Control mechanisms should be put in place so that organizations
can assure that the desired objectives set can be met in the next phase of implementation.
Next slide po…..
 So there are THREE FUNDAMENTAL STRATEGY-EVALUATION ACTIVITIES which includes
(1) Examining the underlying bases of a firm’s strategy for example are the external and
internal factors
(2) Comparing expected results with actual results, and
(3) Taking corrective actions to ensure that performance conforms to plans.

That’s all, thank you.

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