STRATEGIC MANAGEMENT PROCESS

Presented by: Uzair -10 Shahbaaz patel 11 Farin Umatiya -12

MEANING OF STRATEGIC MANAGEMENT PROCESS

The strategic management process means defining the organizations strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises its competitors; and fixes goals to meet all the present and future competitors and then reassesses each strategy.

COMPONENTS OR STEPS OF SMP

STEPS OF SMP
Strategic management process has following four steps:

1.Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it

.2.Strategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose.

Steps
3.Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organizations chosen strategy into action. Strategy implementation includes designing the organizations structure, distributing resources, developing decision making process, and managing human resources.

4.Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives.

VISION OF SMP

Why is vision important to a small business plan and strategic management process?

First, let's review the difference between a vision and mission statement.

The vision is about looking forward and about formalizing where you, and the business, are going; the mission is about defining 'who' the business (the character of the business - yes, I've personified the business organization) is, and what it does. So, if strategy is your business road map, then vision is both your starting point on the journey and where you want to go.
You need to define your vision for your business. You need to be clear in where you want to go: what is the future for your business? If you cannot define that future, you will not be able to build a successful strategic plan.

MISSION

The mission takes on the issue of what the company is today, and what it will be in the future. Many companies put the mission statement into writing and use it as the overarching principle by which the company operates. This mission statement can be made available to employees, investors, creditors, customers and any other stakeholders associated with the organization. Ideally, all activities undertaken by individuals within the organization are in support of the mission statement. Because of this, the statement should be clearly stated, concise and broad in scope (Thompson

BENEFITS OF SMP
Sets

the strategic direction to the firm Focus on critical factors of the organization Understanding the changing environment Obtaining sustainable competitive advantage Lead to better performance Ensure the long term survival in the market place Simplifies complex scenarios and develop suitable strategies-

IMPORTANTS OF SMP

We cannot emphasise strongly enough the importance of strategic management in good corporate governance (remember good governance = good management). In fact, we believe corporate governance should be an integral part of the strategy process. So our Third Golden Rule of corporate governance is that good corporate governance requires an effective strategic management process to be in place. By this we mean that the company is organised and run according to rules which set a goal which matches the duly considered expectations of the stakeholders work out a feasible strategy to achieve that goal put in place an organisation which can carry out the strategy and attain the goal set up a control and reporting function to permit management to drive the organisation effectively and make necessary adjustments to the strategy or even the goal

ADVANTAGES

The basic purpose of performing a strategic management review is to analyze where you stand at present and also where your competitors are. After doing this evaluation, you can come to a decision regarding how you plan to do business in the future. You also analyze you strategic alternatives like those related to segmentation, Value-chain etc. The advantages of doing all this are: - You can plan the future to some extent and you have a strategy to compete in the industry. - You can think of ways to maintain your strengths and increase your competitive advantage by thoroughly planning. - You can anticipate, to some extent, what is going to happen and when it does happen, it doesnt come as a surprise.

DISADVANTAGES

Some of the disadvantages are: The research takes a lot of time and the whole process is time-consuming

- A little miscalculation while the analysis can result into a loss for the company.
- The failure to follow the plan or the failure to implement the strategy can have bad effects.

THANK YOU