1. The Strategic Management
Process
Formulation, Implementation and Evaluation
By Ndikhaye Netshiozwi
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2. Hypothesis
If a business has a proper strategic management
process in place, then its activities will yield
profitability and growth.
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3. Introduction
What is a business
without SMP?
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4. “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
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5. Strategy
According to Wikipedia, Strategy is a general,
nu-detailed, long-term plan of action, to achieve
a complicated goal.
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6. Strategy
According to Wikipedia, Strategy is a general,
un-detailed, long-term plan of action, to achieve
a complicated goal.
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7. Three levels of strategy
•
Corporate strategy
•
Business strategy
•
Operational strategy
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8. 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 business’s future.
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9. Strategic Management Process
The process making choices and decisions that
will enable the business to achieve its goals and
to performance well.
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10. Strategic Management Process
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11. Formulation
“If you fail to plan, you
are planning to fail!”
--Benjamin Franklin
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12. 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.
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13. Formulation
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14. Key Terms in Strategic
Management
•
Vision Statement •
Annual Objectives
•
Mission Statements •
Policies
•
External •
Long-term
Opportunities and Objectives
Threats •
Strategies
•
Internal Strengths
and Weaknesses
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15. Implementation
There's only one
growth strategy: work
hard. -- William Hague
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16. Five reasons why strategy fail
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Just planning
•
Partial commitment
•
Wrong people
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Ignoring details
•
Lack of resources
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17. Evaluation
This is a process of continuously monitoring the
business’s progress toward its long-term goals
and objectives.
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18. Evaluation
Managers should ask:
•
Revising strategy?
•
Problem areas?
Evaluating:
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Review
•
Measure
•
Correct
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19. Rumelt's Evaluation Criteria
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Consistency
•
Consonance
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Advantage
•
Feasibility
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20. Benefits of Evaluation
•
Provide direction
•
Provide guidance
•
Inspire confidence
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21. Strategic Decision Makers
•
Chief Executive
Officer (CEO)
•
Board of Directors
•
Department
Managers
•
Supervisors
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22. Decision Making through Strategy
Strategic decisions differ from operational and
tactical decisions in matters of scope and time
frame.
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23. Conclusion
Without SMP, it will be
hard for business to
see success.
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24. “A strategy is not what you wish
would happen. It is a set of
practical actions for moving
forward.” – Richard Rumelt
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25. Thank you
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