Page 16 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes Table 1.1 summarizes the steps involved in each of the above elements of strategic management.
Table 1.1: Steps in Strategic Management Process

Elements in strategy Questions Description
process
STRATEGY FORMULATION
Strategic analysis
Defining What is our purpose? Organizational purpose is generally articulated
organizational What kind of in vision and mission statements. The first task
purpose organization do we is, therefore, to identify vision and mission of
want to be? the organization.
Environmental analysis involves the gathering
and analysis of intelligence on the business
environment. This encompasses the external
environment (general and competitive forces),
the internal environment (resources,
competences, performance relative to
competitors), and stakeholder expectations.
Strategic choice
Objectives Where do we want to Objectives provide a more detailed articulation
be? of purpose and a basis for monitoring
performance.
Options analysis Are there alternative Alternative strategic options may be identified;
routes? options require to be appraised in order that the
best can be selected.
Strategies How are we going to Strategies are the means or courses of action to
get there? achieve the purpose of the organization.
STRATEGY IMPLEMENTATION
Actions How do we turn A specification of the operational activities and
plans into reality? tasks required to enable strategies to be
implemented.
STRATEGY EVALUATION AND CONTROL
Monitoring and How will we know if Monitoring performance and progress in
control we are getting there? meeting objectives, taking corrective action as
necessary and reviewing strategy.

10 LOVELY PROFESSIONAL UNIVERSITY