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Basic Model of Strategic Management

The document outlines the basic model of strategic management which includes 4 main elements: environmental scanning, strategy formulation, strategy implementation, and evaluation and control. It then provides more details on each element. Environmental scanning involves monitoring internal and external factors. Strategy formulation develops the mission, objectives, strategies, and policies. Strategy implementation puts the strategies into action through programs, budgets, and procedures. Evaluation and control monitors performance and results to compare actual performance to desired goals.

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Fatima Shah
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7K views

Basic Model of Strategic Management

The document outlines the basic model of strategic management which includes 4 main elements: environmental scanning, strategy formulation, strategy implementation, and evaluation and control. It then provides more details on each element. Environmental scanning involves monitoring internal and external factors. Strategy formulation develops the mission, objectives, strategies, and policies. Strategy implementation puts the strategies into action through programs, budgets, and procedures. Evaluation and control monitors performance and results to compare actual performance to desired goals.

Uploaded by

Fatima Shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Basic model of strategic management

• 4 Basic Elements of Strategic Management


– Environmental Scanning
– Strategy Formulation
– Strategy Implementation
– Evaluation and control
• Basic Elements of Strategic management
process
– Strategy
– Formulation
Environmental Scanning

• It is the monitoring, evaluating, and disseminating of


information from the external and internal
environments to key people within the organization.
– Its main purpose is to identify external and
internal elements that will determine the future of
the corporation.
– The simplest way to conduct environmental
scanning is through SWOT Analysis. (Strengths,
Weaknesses, Opportunities and Threats)
– External Environment
– Consists of variables that are outside the organization.
– These refer to the opportunities and threats.
• Internal Environment
– Consists of variables that are within the organization
itself.
– They are the strengths and weaknesses of the
corporation.
• They include corporation’s structure, culture and
resources.
Strategy Formulation

– It is the development of long range plans.


– It includes defining corporate mission, specifying
achievable objectives, developing strategies and
setting policy guidelines.
• Mission
– It is the purpose or reason for the organization’s
existence.
• It tells what the company is providing for the
society
• Objectives
– These are end results of planned activity.
– It tells what is to be accomplished.
• Strategies
– - It states how the corporation will achieve its mission
and objectives.
• Policies
• - It is a broad guideline for decision making that
links the formulation of a strategy with its
implementation
Strategy Implementation
– Is a process by which strategies and policies are put into action
through the development of programs, budgets and procedures.
– Sometimes referred to as operational planning.
• Programs
– Is a statement of the activities or steps needed to accomplish a single
use plan.
It makes a strategy action oriented
• Budgets
– Is a statement of a corporation’s programs in terms of dollars.
– It lists the detailed cost of each program.
• Procedures
– Sometimes termed as Standard Operating Procedures (SOP)
– It is a sequential steps or techniques that describe in detail how a
particular task or job is to be done.
Evaluation and Control
• - Is a process in which corporate activities and
performance results are monitored so that actual
performance can be compared with desired
performance.
• Performance
– It is the end result of activities.
– It includes the actual outcomes of the strategic
management process.
• Triggering Events
– - Is something that acts as a stimulus for a change in
strategy.

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