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Basic model of strategic management

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Basic model of strategic management

  1. 1. Basic Model of Strategic Management Alvin G. Niere M.B.A.-1 Misamis University
  2. 2. 4 Basic Elements of Strategic Management <ul><li>Environmental Scanning </li></ul><ul><li>Strategy Formulation </li></ul><ul><li>Strategy Implementation </li></ul><ul><li>Evaluation and control </li></ul>
  3. 3. Basic Elements of Strategic management process <ul><li>Strategy </li></ul><ul><li>Formulation </li></ul>Environmental Scanning Strategy Implementation Evaluation And Control
  4. 4. Environmental Scanning <ul><li>It is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the organization. </li></ul>
  5. 5. Environmental Scanning <ul><li>Its main purpose is to identify external and internal elements that will determine the future of the corporation. </li></ul><ul><li>The simplest way to conduct environmental scanning is through SWOT Analysis. (Strengths, Weaknesses, Opportunities and Threats) </li></ul>
  6. 6. External Environment <ul><li>Consists of variables that are outside the organization. </li></ul><ul><li>These refer to the opportunities and threats. </li></ul>
  7. 7. Internal Environment <ul><li>Consists of variables that are within the organization itself. </li></ul><ul><li>They are the strengths and weaknesses of the corporation. </li></ul><ul><li>They include corporation’s structure, culture and resources. </li></ul>
  8. 8. Strategy Formulation <ul><li>It is the development of long range plans. </li></ul><ul><li>It includes defining corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines. </li></ul>
  9. 9. Mission <ul><li>It is the purpose or reason for the organization’s existence. </li></ul><ul><li>It tells what the company is providing for the society. </li></ul>
  10. 10. Objectives <ul><li>These are end results of planned activity. </li></ul><ul><li>It tells what is to be accomplished. </li></ul>
  11. 11. Strategies <ul><li>- It states how the corporation will achieve its mission and objectives. </li></ul>
  12. 12. Policies <ul><li>- It is a broad guideline for decision making that links the formulation of a strategy with its implementation. </li></ul>
  13. 13. Strategy Implementation <ul><li>Is a process by which strategies and policies are put into action through the development of programs, budgets and procedures. </li></ul><ul><li>Sometimes referred to as operational planning. </li></ul>
  14. 14. Programs <ul><li>Is a statement of the activities or steps needed to accomplish a single use plan. </li></ul><ul><li>It makes a strategy action oriented. </li></ul>
  15. 15. Budgets <ul><li>Is a statement of a corporation’s programs in terms of dollars. </li></ul><ul><li>It lists the detailed cost of each program. </li></ul>
  16. 16. Procedures <ul><li>Sometimes termed as Standard Operating Procedures (SOP) </li></ul><ul><li>It is a sequential steps or techniques that describe in detail how a particular task or job is to be done. </li></ul>
  17. 17. Evaluation and Control <ul><li>- Is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance. </li></ul>
  18. 18. Performance <ul><li>It is the end result of activities. </li></ul><ul><li>It includes the actual outcomes of the strategic management process. </li></ul>
  19. 19. Triggering Events <ul><li>- Is something that acts as a stimulus for a change in strategy. </li></ul>

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