Basic model of strategic management

Basic Model of Strategic Basic Model of Strategic ManagementManagement

Alvin G. NiereAlvin G. Niere

M.B.A.-1M.B.A.-1

Misamis UniversityMisamis University

4 Basic Elements of Strategic 4 Basic Elements of Strategic Management Management

Environmental ScanningEnvironmental Scanning Strategy FormulationStrategy Formulation Strategy ImplementationStrategy Implementation Evaluation and controlEvaluation and control

Basic Elements of Strategic Basic Elements of Strategic management process management process

EnvironmentalScanning

Strategy

Formulation

StrategyImplementation

EvaluationAnd

Control

Environmental ScanningEnvironmental Scanning

- It is the monitoring, evaluating, and It is the monitoring, evaluating, and disseminating of information from the disseminating of information from the external and internal environments to key external and internal environments to key people within the organization.people within the organization.

Environmental ScanningEnvironmental Scanning

- Its main purpose is to identify external and Its main purpose is to identify external and internal elements that will determine the internal elements that will determine the future of the corporation.future of the corporation.

- The simplest way to conduct The simplest way to conduct environmental scanning is through environmental scanning is through SWOT SWOT Analysis. Analysis. (Strengths, Weaknesses, (Strengths, Weaknesses, Opportunities and Threats)Opportunities and Threats)

External EnvironmentExternal Environment

- Consists of variables that are outside the Consists of variables that are outside the organization.organization.

- These refer to the opportunities and These refer to the opportunities and threats.threats.

Internal EnvironmentInternal Environment

- Consists of variables that are within the Consists of variables that are within the organization itself.organization itself.

- They are the strengths and weaknesses of They are the strengths and weaknesses of the corporation.the corporation.

- They include corporation’s structure, They include corporation’s structure, culture and resources.culture and resources.

Strategy FormulationStrategy Formulation

- It is the development of long range plans.It is the development of long range plans.

- It includes defining corporate mission, It includes defining corporate mission, specifying achievable objectives, specifying achievable objectives, developing strategies and setting policy developing strategies and setting policy guidelines.guidelines.

MissionMission

- It is the purpose or reason for the It is the purpose or reason for the organization’s existence.organization’s existence.

- It tells what the company is providing for It tells what the company is providing for the society.the society.

ObjectivesObjectives

- These are end results of planned activity.These are end results of planned activity.

- It tells what is to be accomplished.It tells what is to be accomplished.

StrategiesStrategies

- It states how the corporation will achieve - It states how the corporation will achieve its mission and objectives.its mission and objectives.

PoliciesPolicies

- It is a broad guideline for decision making - It is a broad guideline for decision making that links the formulation of a strategy with that links the formulation of a strategy with its implementation.its implementation.

Strategy ImplementationStrategy Implementation

- Is a process by which strategies and Is a process by which strategies and policies are put into action through the policies are put into action through the development of programs, budgets and development of programs, budgets and procedures.procedures.

- Sometimes referred to as operational Sometimes referred to as operational planning.planning.

ProgramsPrograms

- Is a statement of the activities or steps Is a statement of the activities or steps needed to accomplish a single use plan.needed to accomplish a single use plan.

- It makes a strategy action oriented.It makes a strategy action oriented.

BudgetsBudgets

- Is a statement of a corporation’s programs Is a statement of a corporation’s programs in terms of dollars.in terms of dollars.

- It lists the detailed cost of each program.It lists the detailed cost of each program.

ProceduresProcedures

- Sometimes termed as Standard Operating Sometimes termed as Standard Operating Procedures (SOP)Procedures (SOP)

- It is a sequential steps or techniques that It is a sequential steps or techniques that describe in detail how a particular task or describe in detail how a particular task or job is to be done. job is to be done.

Evaluation and ControlEvaluation and Control

- Is a process in which corporate activities - Is a process in which corporate activities and performance results are monitored so and performance results are monitored so that actual performance can be compared that actual performance can be compared with desired performance.with desired performance.

PerformancePerformance

- It is the end result of activities.It is the end result of activities.

- It includes the actual outcomes of the It includes the actual outcomes of the strategic management process.strategic management process.

Triggering EventsTriggering Events

- Is something that acts as a stimulus for a - Is something that acts as a stimulus for a change in strategy.change in strategy.