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Unit 2: Strategic Management Framework

2.1 Strategic Planning Notes

Strategic planning occurs at top management levels; task control at the lowest levels in the
organization and management control is in between.

Strategic planning focus on long range planning is least systematic; uses the rough approximation
of the future. Whereas, task control focus on short runs operating activities, is most systematic;
uses accurate current data. Management control is in between.

Did u know? Each activity involves both planning and control, but the planning process is
much more important in strategy formulation; the control process is much more important
in task control and the planning and control are of approximately equal importance in
management control.
The relationship of these activities is given below:

Figure 2.1: General Relationship among Planning and Control Functions
Activity Nature of the end product

Strategy Goals Strategies and Policies

Formulation

Management Implementation of Strategies

Control

Task Control Efficient and Effective
performance of Individual Task

Self Assessment

Fill in the blanks:
1. …………….. focus on long range planning is least systematic; uses the rough approximation
of the future.
2. …………… is one of the several types of planning and control activities in an organization.

2.2 Strategic Formulation

Strategic formulation is the process of deciding the goals of the organization and the strategies
for attaining these goals. Goals describe the broad overall aims of the organization and the term
objectives describe specific steps to accomplish the goals within a given timeframe.

Notes Goals are timeless, they exist until they are changed and they are changed only
rarely. Earning a satisfactory profit or more specifically, a satisfactory return on investment
is an important goal, in others, attaining a large market share is a goal.

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