Page 17 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 1: Introduction to Strategic Management

The above steps can also be depicted as a series of processes involved in strategic management. Notes
Figure 1.1: A General Framework of Strategic Management Process

Agreement on and initiation of the
strategic management process.

The organization determines vision, mission,
goals and objectives. F

e
The organization analyzes both e
external and internal environment.
d
The organization establishes long-term b
goals and objectives. a

The organization chooses from alternative c
courses of action. k

The organization implements the choices
to achieve strategic fit.

The organization monitors the
implementation activity.

The seven steps in the above model of strategy process fall into three broad phases – formulation,
implementation and evaluation – though in practice the three phases interact closely.
Good strategists know that formulation and implementation of strategy rarely proceed according
to plan, partly because the constantly changing external environment brings new opportunities
or threats, and partly because there may also be inadequate internal competence. Since these
may lead the management to change the plan, there will be frequent interaction between the
activities of formulating and implementing strategy, and management may need to return and
reformulate the plan.

Caselet Telecom Growth and Tata Strategic

ata Strategic assessed the telecom environment with respect to customers, regulation,
technology and competition, and estimated the market potential for different
Tsegments in the Indian telecom market. The group's vision and long-term strategic
intent in telecom was formulated, growth options and attractive investment opportunities
were recommended to achieve this vision, and an optimum organisation structure covering
the various telecom entities in the group was evolved. The group was able to take critical
investment decisions based on Tata Strategic's recommendations and is now one of India's
leading integrated telecom operators.

Source: tsmg.com

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