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The Strategic Management Process
Formulation, Implementation and EvaluationBy Ndikhaye Netshiozwi
Hypothesis
If a business has a proper strategic management process in place, then its activities will yield profitability and growth.
Introduction
What is a business without SMP?
All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun Tzu
Strategy
According to Wikipedia, Strategy is a general, nu-detailed, long-term plan of action, to achieve a complicated goal.
Strategy
According to Wikipedia, Strategy is a general, un-detailed, long-term plan of action, to achieve a complicated goal.
Three levels of strategy
Corporate strategy
Business strategy
Operational strategy
Why is strategy important?
Provide direction and focus for departments and all employees.
Specify results that the business needs to achieve.
Align business activities with business goals.
Have a clear display of the businesss future.
Strategic Management Process
The process making choices and decisions that will enable the business to achieve its goals and to performance well.
Strategic Management Process
Formulation
If you fail to plan, you are planning to fail! --Benjamin Franklin
Formulation
Strategy formulation is the process of defining mission of the business, objectives, and selecting other options that can be used as the strategy of the business.
Formulation
Key Terms in Strategic Management
Vision Statement
Mission Statements
External Opportunities and Threats
Internal Strengths and Weaknesses
Annual Objectives
Policies
Long-term Objectives
Strategies
Implementation
There's only one growth strategy: work hard. -- William Hague
Five reasons why strategy fail
Just planning
Partial commitment
Wrong people
Ignoring details
Lack of resources
Evaluation
This is a process of continuously monitoring the businesss progress toward its long-term goals and objectives.
Evaluation
Managers should ask:Revising strategy?
Problem areas?
Evaluating:Review
Measure
Correct
Rumelt's Evaluation Criteria
Consistency
Consonance
Advantage
Feasibility
Benefits of Evaluation
Provide direction
Provide guidance
Inspire confidence
Strategic Decision Makers
Chief Executive Officer (CEO)
Board of Directors
Department Managers
Supervisors
Decision Making through Strategy
Strategic decisions differ from operational and tactical decisions in matters of scope and time frame.
Conclusion
Without SMP, it will be hard for business to see success.
A strategy is not what you wish would happen. It is a set of practical actions for moving forward. Richard Rumelt
Thank you
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1/22/13
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Click to edit the outline text formatSecond Outline LevelThird Outline LevelFourth Outline LevelFifth Outline LevelSixth Outline LevelSeventh Outline LevelEighth Outline Level
Ninth Outline LevelClick to edit Master text styles
Second level
Third level
Fourth level
Fifth level
Click to edit the outline text formatSecond Outline LevelThird Outline LevelFourth Outline LevelFifth Outline LevelSixth Outline LevelSeventh Outline LevelEighth Outline Level
Ninth Outline LevelClick to edit Master text styles
Second level
Third level
Fourth level
Fifth level
1/22/13
1/22/13