To achieve our overall workshop goals, we
will need to have good understanding of
some terms in relationship to our
workshop topic for this session.
Terms for study (understanding & analysis)
Strategic management Process
Summary and Conclusions
The word STRATEGY is derived from two Greek
words (6th century BC);
STRATOS which means “Army”
Agein which means “To Lead”
Successful organizations place strategy at the center of
the management process.
Strategy is simply the employment and the management of the
overall resources to gain an objective.
Tactics are the use of a subset of these resources to gain a part of the
The conscious, systematic process of making decisions
about goals and activities that an individual, group, work
unit, or organization will pursue in the future.
A purposeful effort that is directed and controlled by
managers and often draws on the knowledge and experience
of employees throughout the organization.
8. STRATEGIC PLANNING
It is a disciplined effort that produces fundamental decisions and
actions that shape and guide what an organization is, who it
serves, what it does, and why it does it, with a focus on the
This is the process of formulating and implementing strategies to
accomplish long-term goals and sustain competitive advantage.
Competitive advantage is to operate with an attribute or set of
attributes that allows an organization to outperform its rivals.
Sustainable competitive advantage — one that is difficult for
competitors to imitate.
9. STRATEGIC PLAN
A strategic plan is a document used to communicate with the
organization the organizations goals, the actions needed to
achieve those goals and all of the other critical elements
developed during the planning exercise.
**A strategic plan is a company’s game plan.**
11. STRATEGIC MANAGEMENT
The art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an
organization to achieve its preset objectives and create a
sustainable comparative advantage (one that is difficult for
competitors to imitate).
Strategic management is not a one-time process but instead, it
is a continuous process.
Private example: doubling of annual dividends.
Public example: reduction in crime rate.
13. STAGES OF STRATEGIC MANAGEMENT
Includes developing a vision and mission, identifying an
organization’s external opportunities and threats,
determining internal strengths and weaknesses,
establishing long-term objectives, generating alternative
strategies, and choosing particular strategies to pursue
14. STAGES OF STRATEGIC MANAGEMENT
requires a firm to establish annual objectives, devise
policies, motivate employees, and allocate resources
so that formulated strategies can be executed
often called the action stage
15. STAGES OF STRATEGIC MANAGEMENT
reviewing external and internal factors that are the
bases for current strategies, measuring performance,
and taking corrective actions
17. STRATEGIC MANAGEMENT PROCESS?
The process of creating strategy. It Involves assessing existing
strategies, organization, and environment to develop new
strategies and strategic plans capable of delivering future
Strategic question for strategy formulation:
What is our business mission?
Who are our customers?
What do our customers consider value?
What have been our results?
What is our plan?
18. STRATEGIC MANAGEMENT PROCESS?
The process of allocating resources and putting strategies into
All organizational and management systems must be mobilized
to support and reinforce the accomplishment of strategies.
Essential tasks for strategy implementation:
Identify organizational mission and objectives.
Assess current performance vis-à-vis mission and objectives.
Create strategic plans to accomplish purpose and objectives.
Implement the strategic plans
Evaluate results; change strategic plans and/or implementation
processes as necessary.