Strategic Management Process Step 1.

Establishment of Mission, Vision and Goals Mission A clear and concise expression of the basic purpose of the organization. It describes what the organization does, who it does it for, its basic good or service, and its values. Strategic Vision It provides a perspective on where the organization is headed and what it can become. The long-term direction of the company and its strategic intent Strategic Goals Evolve from the mission and vision of the organization. Step 2. Analysis of External Opportunities and Threats Environmental Analysis:

Other forces: Organizational Stakeholders Economic conditions Technological factors Step 3. Analysis of Internal Strengths and Weaknesses Resources Inputs to production that can be accumulated over time to enhance the performance of a firm tangible assets intangible assets

Resources as source of competitive advantage: . If the resource is instrumental for creating customer value 2. If resources are rare and not equally available to all competitors 3. If resources are difficult to imitate 4. When they are well-organized Benchmarking The process of assessing how well one companys basic function and skills compare with those of another company or set of companies. Internal Benchmarking Benchmarking their different internal operations and departments against one another to disseminate the companys best practices throughout the organization and thereby gain a competitive advantage. Step 4. SWOT Analysis and Strategy Formulation SWOT Analysis Helps managers summarize the relevant, important facts from their external and internal analyses. Then helps the organization formulate strategies that would take advantage of available opportunities by capitalizing on the organizations strengths, neutralizing its weaknesses, and countering potential threats.