Strategic Management Process

By Neetu Chadha

What is Strategic Management?

A dynamic process of formulation, implementation, evaluation and control of strategies to realise the organisations strategic intent.

STRATEGIC MANAGEMENT PROCESS

ESTABLISHMENT OF VISION & MISSION statements, Business Definition Adopting Business Model, Setting Goals & Objectives STRAT. INTENTS Environmental Scanning and internal analysis, Conducting SWOT, Formulating CORPORATE & BUSINESS LEVEL Strategies, Strategic Analysis, Strategic Choice, Strategic Plan.

FORMULATION OF STATEGIES

IMPLEMENTATION OF STRATEGIES

Activating Strategies, Designing Structure, Systems& Processes, Behavioral & Functional implementation And Operationalising strategies

REVIEW,EVALUATION Performing Strategic Evaluation, Exercising Strategic CONTROL Control and Reformulating Strategies

Strategic Management Process

1)Establishing the hierarchy of strategic intent: Creating and communicating a vision. Designing a mission statement. Defining the business. Setting objectives.

Strategic management process

2) Formulation of strategies: Performing environmental appraisal. Doing organizational appraisal. Considering corporate level strategies. Considering business level strategies. Strategic analysis. Formulating strategies. Preparing strategic plan.

Strategic management process.

3) Implementation of strategies: Activating strategies. Designing structures and systems. Managing behavioral implementation. Managing functional implementation. Operationalizing strategies.

Strategic management process

4) Performing strategic evaluation and control: Performing strategic evaluation. Exercising strategic control. Reformulating strategies.

Strategists and their role in Strategic Management.

Strategists are individuals or groups who are primarily involved in the formulation, implementation and evaluation of strategy. So all managers are strategists in a limited sense. Persons outside the organization are also involved in strategic management. They are also strategists Consultants.

Various strategists
Board of Directors: Is responsible for the governance of the organization. As directors, the members of the board are responsible for providing guidance and establishing the directives according to which the managers of the organization can operate.

Various strategists.
The Chief Executive Officer: Is the most important strategist who is responsible for all the aspects of strategic management, right from formulation to the evaluation of strategy. He plays a very important role in strategic decision making.

Various strategists
Entrepreneurs: are persons who always searches for change, responds to it and exploits it as an opportunity. They play a very important and a proactive role in strategic management. They provide a sense of direction to the organization and set objectives and formulate strategies to achieve them.

Various strategists
Senior Management: When assigned with specific responsibilities senior managers look after modernization, technology up gradation, diversification and expansion, plan implementation and new product development. Senior managers perform a variety of roles by assisting the board and the CEO in formulation, implementation and evaluation of strategies.

Various strategists
Consultants: The main advantage of hiring consultants is getting unbiased and objective opinion from a knowledgeable outsider and availability of specialists skills. Some Consulting cos are, Mc Kinsey and company, Accenture, AF Ferguson, Boston consulting, S B Billimoria etc.