...Planning is an iterative activity. If the world did not change, we would only have to develop one plan and stick to it. However, we live in a turbulent world. David Brinkley, during the breakup of the former Soviet Union, stated that each day seems to bring the dawn of a new era. In such a world we need a planning model that allows us to anticipate the future and to use this anticipation in conjunction with an analysis of our organization--its culture, mission, strengths and weaknesses--to define strategic issues, to chart our direction by developing strategic vision and plans, to define how we will implement these plans and to specify how we will evaluate how well we are implementing these plans. The fact that the world is changing as we move forward in the future demands that the process be an iterative one. Strategic Management Strategic management is a technique you can use to create a favorable future and help your organization to prosper. To create this favorable future, you must involve your organization's stakeholders (i.e., anyone with a vested interest in achieving your organization's goals) in envisioning the most desirable future and then in working together to make this vision a reality. The key to strategic management is to understand that people communicating and working together will create this future, not some words written down on paper. Strategic management does not replace traditional management activities such as budgeting, planning, monitoring, marketing...
Words: 2060 - Pages: 9
...The Strategic Planning Process In the 1970's, many large firms adopted a formalized top-down strategic planning model. Under this model, strategic planning became a deliberate process in which top executives periodically would formulate the firm's strategy, then communicate it down the organization for implementation. The following is a flowchart model of this process: The Strategic Planning Process Mission | V Objectives | V Situation Analysis | V Strategy Formulation | V Implementation | V Control This process is most applicable to strategic management at the business unit level of the organization. For large corporations, strategy at the corporate level is more concerned with managing a portfolio of businesses. For example, corporate level strategy involves decisions about which business units to grow, resource allocation among the business units, taking advantage of synergies among the business units, and mergers and acquisitions. In the process outlined here, "company" or "firm" will be used to denote a single-business firm or a single business unit of a diversified firm. Mission A company's mission is its reason for being. The mission often is expressed in the form of a mission statement, which conveys a sense of purpose to employees and projects a company image to customers. In the strategy formulation process, the mission statement sets the mood of where the company should go. Objectives Objectives are concrete goals that the organization seeks...
Words: 995 - Pages: 4
...Strategic planning process Part A 1) Explain the Strategic Planning Process For a firm to survive and prosper in this highly competitive business environment, a firm must engage in strategic planning process that could define its objectives and assess both the internal and external situation; allowing the company to formulate strategy, implement strategy, evaluate progress and able to make adjustment as necessary to stay on track. There are many approaches to strategic planning but typically a three-step process may be used: * Situation - evaluate the current situation and how it came about. * Target - define goals and/or objectives (sometimes called ideal state) * Path / Proposal - map a possible route to the goals/objectives The Strategic Planning Process Mission & Objectives Mission & Objectives Environmental Scanning Environmental Scanning Strategy Formulation Strategy Formulation Strategy Implementation Strategy Implementation Evaluation & Control Evaluation & Control Mission and objectives It describes the company’s business vision. It includes a firm values, purpose and goals that help to pursue future opportunities. Having a business vision helps firm’s leaders to define measurable financial and strategic objectives. Financial objectives involve measures such as sales target. Environmental Scan It involves the following components: * Internal analysis of the firm * Analysis of the firm’s industry (task environment) ...
Words: 1281 - Pages: 6
...“Strategic Management is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives” (Pearce II & Robinson, 2013, p. 3). The process of Strategic Management consists of nine (9) steps. The first three (3) steps are crucial for an organization’s success: formulating company mission, conducting analysis on internal capabilities and assessment of the external environment factors influencing the company operations. This paper will begin the strategic planning process for ABC Financial Corporation. The paper will outline the ABC Financial Corporation's research approach that will be used for the strategic plan to validate vision statement as well as the sources that will be utilized in performing an external and internal environmental analysis. The organization’s vision statement “presents a firm’s strategic intent designed to focus the energies and resources of the company on achieving a desirable future” (Pearce II & Robinson, 2013, p. 34). The value of the mission statement “is its specification of the firm’s ultimate aims” (Pearce II & Robinson, 2013, p. 42). ABC Financial Corporation’s vision statement is “to be recognized for the unparalleled customer experience” (ABC Vision, 2013, para. 1). ABC’s mission statement reads “With our position of trust and our tradition of integrity, our shared mission is to know our customers and anticipate their needs; advocate and advise; innovate and surprise”...
Words: 676 - Pages: 3
...Strategic Management Process Mitchell Jaques MGT/498 August 23, 2011 Dr. Earl Levith Strategic Management Process Strategic management is an essential process for managerial decision making. This is a special process for planning and implementing actions that may determine a company’s long-term performance. This will require a business to conduct internal and external scanning and environmental analysis, strategic implementation is required, evaluation, and control. Strategic management encompasses the use of the SWOT analysis, (Strengths, Weaknesses, Opportunities, and Threats), to incorporate strategic planning and industry analysis (Wheelen & Hunger, 2010). Primary Components of Strategic Management In a normative or prescriptive approach to the strategic management model, we would generally reflect an explicit, planned, and rational approach of the process (Ginter & Duncan, 1985). According to the Ginter & Duncan (1985) website, this model was based of empirical research and creates a broader-based model. In this model there are eight stages of this process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. While the normative strategy hits all the main components of strategic management, there has been a more modern formula created for the strategic...
Words: 796 - Pages: 4
...SYLLABUS STR/581 SYLLABUS SCHOOL OF BUSINESS STR/581 STRATEGIC PLANNING & IMPLEMENTATION MAIN CHARLOTTE CAMPUS 04/01/2013 TO 05/06/2013 Copyright © 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. COURSE DESCRIPTION THIS CAPSTONE COURSE INTEGRATES CONCEPTS FROM ALL PRIOR COURSES IN THE PROGRAM. STUDENTS APPLY THE CONCEPTS OF STRATEGIC PLANNING AND IMPLEMENTATION TO CREATE SUSTAINABLE, COMPETITIVE ADVANTAGE FOR AN ORGANIZATION. OTHER TOPICS INCLUDE ENVIRONMENTAL SCANNING, STRATEGIC ANALYSIS, CORPORATE SOCIAL RESPONSIBILITY, IMPLEMENTATION AND EVALUATION, AND RISK MANAGEMENT. POLICIES FACULTY AND STUDENTS/LEARNERS WILL BE HELD RESPONSIBLE FOR UNDERSTANDING AND ADHERING TO ALL POLICIES CONTAINED WITHIN THE FOLLOWING TWO DOCUMENTS: UNIVERSITY POLICIES: YOU MUST BE LOGGED INTO THE STUDENT WEBSITE TO VIEW THIS DOCUMENT. INSTRUCTOR POLICIES: THIS DOCUMENT IS POSTED IN THE COURSE MATERIALS FORUM. UNIVERSITY POLICIES ARE SUBJECT TO CHANGE. BE SURE TO READ THE POLICIES AT THE BEGINNING OF EACH CLASS. POLICIES MAY BE SLIGHTLY DIFFERENT DEPENDING ON THE MODALITY IN WHICH YOU ATTEND CLASS. IF YOU HAVE RECENTLY CHANGED MODALITIES, READ THE POLICIES GOVERNING YOUR CURRENT CLASS MODALITY. COURSE MATERIALS BARNEY, J. B. (2007). GAINING AND SUSTAINING COMPETITIVE ADVANTAGE (3RD ED.). UPPER SADDLE RIVER, NJ: PEARSON PRENTICE HALL. MINTZBERG, H., GHOSHAL, S., LAMPEL, J., & QUINN, J. B. (2003). THE STRATEGY PROCESS: CONCEPTS, CONTEXTS, CASES (4TH ED.). UPPER SADDLE...
Words: 2575 - Pages: 11
...1 Strategic Management Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of internal and external environments in which the organization competes. The Process of Strategic management The process of strategic management are 1. Environmental analysis 2. Formulation analysis 3. Implementation 4. Evaluation Environmental Analysis Environmental analysis is the main stage for gaining information and data to grow business. We analyze internal and external data influencing goal and get relevant vision for organization. By doing analysis, we can know who is our organization’ competitor. We can use the PESTEL analysis and SWOT analysis as a tool. We can focus on understanding the need of the organization and get more idea to run the business. Formulation After completing analysis, the information and data is reviewed by strategy formulation. For reaching defined goal and objective, we determine what resources has currently in business. After accomplishing analysis, managers formulate corporate, business and functional strategy. Formulation set policies, task, strategic planning. SWOT analysis is identified to improve weakness, to overcome strength, to get the way for organization from strength and weakness. Implementation Strategy implementation is the action stage of the strategy management process. Designing...
Words: 620 - Pages: 3
...following: •Job analysis •Human resource planning •Employee recruitment •Employee selection •Performance appraisal •Human resource development Career planning and development •Compensation • Benefits • Industrial relations •Health and safety programs •Manage diversity What is strategy? 'Strategy defines the direction in which an organisation intends to move and establishes the framework for action through which it intends to get there.' The purpose of strategy is to maintain a position of advantage bycapitalising on the strengths of an organisation and minimising its weaknesses. To do this, an organisationmust identify and analyse the threats and opportunities present in its external and internal environments. What is strategic management? Strategic management is the process whereby managers establish an organisation's long-term direction, setspecific performance objectives, develop strategies to achieve these objectives in the light of all the relevantinternal and external circumstances and undertake to execute the chosen action plans. The aims of strategicmanagement are to help the organisation to achieve a competitive advantage and to ensure long-term successfor the organisation. Components of strategic management Strategic management involve Strategy formulation - selecting an organisation's mission, or purpose, andkey objectives; analysing the organisation's internal and external environments; and selecting appropriate business strategies, and Strategy implementation - designing...
Words: 1524 - Pages: 7
...A h Tools esearc to R Guide SWOT Analysis Eva Chen Paul Bruneski SWOT Analysis Strengths, Weaknesses, Opportunities, Threats History of SWOT In the 1960’s and 70’s, Albert Humphrey is said to have developed this strategic planning tool using data from the top companies in America at the time. A SWOT Analysis looks at the strengths, weaknesses, opportunities and threats that are relevant to an organization in a new venture. A SWOT Analysis is a tool which allows users to look at the direction a company or organization may wish to move towards in the future. A SWOT Analysis is a useful tool, which in conjunction with others can help make informed decisions. Table of Contents History of SWOT Definition of SWOT 1 1 Internal and 2 External Factors Guides for using SWOT 2 Potential Uses of 3 SWOT Strengths & Weaknesses of the method 3 Example: SWOT 4 of British Airway Definition of SWOT By specifying clear objectives and identifying internal and external factors that are either helpful or not, a short and simple SWOT analysis is a useful resource which may be incorporated into an organizations strategic planning model. Strengths- Internal attributes that are helpful to the organization to achieving its objective Weaknesses – Internal attributes that are harmful to the organization to achieving its objective Opportunities – External factors that help the organization achieve its objective Threats - External factors that are harmful to the organization...
Words: 962 - Pages: 4
...strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. b. c. d. e. SO WO SW ST WT 4. How many cells are in a SWOT Matrix? a. b. c. d. e. Two Four Six Eight Nine 5. What are two external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength 6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e. A strong industry An unstable environment A stable environment A weak industry A weak financial position 7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b. Stage 1 Stage 2 c. d. e. Stage 3 Stage 4 Stage 5 9. 10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration b. c. b. c. Divestiture Forward integration Cost leadership Related diversification 11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e. Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand...
Words: 4249 - Pages: 17
...Strategic Management Process Paper Misty DeMoss MGMT 498 September 24, 2013 Dennis Hoerr Strategic Management Process Paper Strategic management is an essential process for managerial decision making. This process helps a company determine what planning and implementing actions that may determine a company’s long-term performance. The basic model for strategic planning consists of the four basic elements: Environmental scanning, strategy formulation, strategy implementation, and evaluation and control. By companies conducting internal and external scanning of the environment they are able to make better observations of what the company actually needs to implement. This paper will describe the primary components of a strategic management process, indicate why a strategic management process is needed, and describe the process Ford Motor company uses. Primary Components of Strategic Management Every company requires managers to plan accordingly for the yearly budget. This yearly budget is a time consuming stage and uses minimal analysis and small amounts of environmental information. Forecast based planning is used in this eight stage model process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. The current model of strategic management process includes...
Words: 563 - Pages: 3
...ATHE-Level-6 Diploma in Management Strategic Marketing Unit 6.5 Submitted to: London Churchill College Submitted by: Student ID: Date of Submission: Table of Contents: Introduction: 2 Task 1 3 1.1 Assessment on the role of strategic marketing in an organization: 3 1.2 Analysis on the relationship between corporate strategy and marketing strategy: 3 1.3 Analysis on how marketing strategy is developed: 5 Task 2 6 2.1 Evaluation on approaches to internal environmental analysis 6 2.2 Evaluate approaches to external environmental analysis: 7 2.3 The integration of Internal and external environment analyses: 8 Task 3 9 3.1 Analysis on decisions and choices to be made at a corporate level: 9 3.2 Assess how these decisions influence marketing at business unit and functional level: 10 3.3 Analyze approaches to competitive positioning of organization: 11 Task 4 12 4.1 Identify a range of strategies that can contribute to competitive advantage 12 4.2 Analyze marketing communications strategies 13 4.3 Analyze marketing strategies, their application and implementation for an organization 14 References: 15 Introduction: Marketing is one of the most critical and vital functional area. According P. Kotler & A. Chernes, (2012) Marketing is a managerial process for offering products and services for consumption in...
Words: 3716 - Pages: 15
...in a planning process that a manager should follow ensure effective planning. (20 marks) Planning defines forethought and forecasting. The seven steps in a planning process that a manager or any manager should follow in ensuring effective planning are: First every planning must have a goal setting. Plans are mean to achieve ends or objectives. Objectives must be clear, specific and informative . The tools are 1.Mind map and 2. Smart which stands for specific, measurable, attainable, realistic and time bound . Second, developing the planning premises. The assumptions and conditions must be clearly defined: tools and decision table. Third, reviewing limitations which are: Constraints or limitations Finance Human resources Materials Power Machinery Tools: SWOT Analysis. The most renowned tool for audit and analysis of overall strategic position of the business and its environment. It key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capacities. Strategy . The plan of action designed to achieved a specific goal. Then gaining or being prepared to gain a position of advantage over adversaries or best exploiting emerging possibilities. The strategic planning process they include: Mission and objectives, environmental scanning, strategy implementation and evaluation. Environmental scan that includes internal analysis of the firm and analysis of the...
Words: 1193 - Pages: 5
...techniques that deal with strategic management have been developed and used successfully by business corporations such as General Electric and the Boston Consulting Group. Over time, business practitioners and academic researchers have expanded and refined these concepts. Initially, strategic management was of most use to large corporations operating in multiple industries. Increasing risks of error, costly mistakes, and even economic ruin are causing today’s professional managers in all organizations to take strategic management seriously in order to keep their companies competitive in an increasingly volatile environment. As managers attempt to better deal with their changing world, a firm generally evolves through the following four phases of strategic management: Phase 1—Basic financial planning: Managers initiate serious planning when they are re- quested to propose the following year’s budget. Projects are proposed on the basis of very little analysis, with most information coming from within the firm. The sales force usually provides the small amount of environmental information. Such simplistic operational planning only pretends to be strategic management, yet it is quite time consuming. Nor- mal company activities are often suspended for weeks while managers try to cram ideas into the proposed budget. The time horizon is usually one year. Phase 2—Forecast-based planning: As annual budgets become less useful at stimulating long- term planning, managers attempt to propose...
Words: 2144 - Pages: 9
...Strategic Management Process Erica Valadez MGT/ 498 February, 12, 2014 Mr. Bernal Abstract There are several components of a strategic management process that are imperative for a company’s success. The most important components are environmental planning, strategy formulation, strategy implementation and strategy evaluation. Understanding each of them is essential when implementing them in the company. Strategic Management Process The primary components of a strategic management process are environmental planning, strategy formulation, strategy implementation and strategy evaluation. Environmental scanning is a process of collecting, examining and providing information for strategic purposes. This information assists in the internal and external factors influencing an organization. Following the analysis process, there should be an evaluation on it to improve the analysis (Management Study Guide, n.d.) Strategy formulation is the method of deciding the best course of action for accomplishing organizational objectives for this reason achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies (Management Study Guide, n.d.). Strategy implementation entails producing the strategy work as intended or putting the organization’s chosen strategy into action. This includes designing the organization’s structure, distributing resources, developing decision making process and managing human resouces...
Words: 457 - Pages: 2
