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1. Strategic Management Process

   Tutorial 03
2. The basic strategic management process is most closely related to the traditional model. However, each of the three approaches heavily influences each one of the stages of this process. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
3. A combined perspective of Strategic Management
4. Strategic Management Process Analysis the Environment, Stakeholders, and Organizational Resources Implement Strategies & Establish Control Systems Strategic Direction Formulate Basic Strategies Control Control Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
5. Components of Strategic Management Process Situation analysis Strategic direction Strategy formulation Strategy implementation Strategic Control SMP Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
6. Situation Analysis When performing a situation analysis all of the stakeholders inside and outside of the firm, as well as the major external forces, should be analyzed at both the domestic and international levels. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
7. External Environment External environment includes groups, individuals, and forces outside of the traditional boundaries of the organization that are significantly influenced by or have a major impact on the organization. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
8. Internal Environment The internal environment includes all of the stakeholders, resources, knowledge, and processes that exist within the boundaries of the firm. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
9. Analyzing the environment and the company can assist the company in all of the other tasks of strategic management. Example A firm's managers should formulate strategic direction and specific strategies based on organizational strengths and weaknesses and in the context of the opportunities and threats found in its environment. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
10. Strengths: company resources and capabilities that can lead to a competitive advantage.  Weaknesses :resources and capabilities that a company does not possess, to the extent that their absence places the firm at a competitive disadvantage.  Opportunities :conditions in the broad and operating environments that allow a firm to take advantage of organizational strengths, overcome organizational weaknesses, and / or neutralize environmental threats.  Threats :conditions in the broad operating environments that may stand in the way of organizational competitiveness or the achievement of stakeholder satisfaction. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
11. Strategic Direction Strategic direction pertains to the long-term goals and objectives of the organization. It defines the purposes for which a company exists and operates. This direction is often contained in mission and vision statements. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
12. Mission – Reason for Existence Missions describe the areas or industries in which an organization operates. Example: Mission of the New York Stock Exchange Support the capital-raising and asset-management processes by providing the highest-quality and most cost-effective, self-regulated market­place for the trading of financial instruments; promote confidence in and understanding of that process; and serve as a forum for discussion of relevant national and international policy issues. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
13. Vision A vision statement expresses what the organization wants to be in the future, which may involve a fundamental change in its business. Example: A start-up firm may have a mission to provide software design and support for its clients, but its long-range vision may be to become a fully integrated Internet provider. While the mission directs the business for now, the mission will gradually change as the company moves over time towards fulfillment of its vision.  Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
14. Strategy Formulation A strategy can be thought of in either of two ways:  as a pattern that emerges in a sequence of decisions over time or as an organizational plan of action that is in tended to move a company toward the achievement of its short term goals and, ultimately, toward the achievement of its fundamental purposes. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
15. In some organizations, particularly those in rapidly changing environments and in small businesses, strategies are not "planned" in the formal sense of the word. Instead, managers seize opportunities as they come up, but within guidelines or boundaries defined by the firm's strategic direction or mission. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
16. Strategies as "plans" are common in most organizations. Strategy formulation, the process of planning strategies, is often divided into three levels i.e Corporate Level Business Level Functional Level Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
17. Corporate-level strategy :(“Where to Compete”) defines a company's domain of activity through selection of business areas in which the company will compete. Business-level strategy :("How to compete in those areas”) pertains to domain direction and navigation, or how businesses should compete in the areas they have selected. Sometimes business-level strategies are also referred to as “competitive strategies”. Functional-level strategy : ("The functional details of how resources will be managed so that business-level strategies will be accomplished.“) develops the details of how functional resource areas such as marketing, operations, and finance should be used to implement business-level strategies and achieve competitive advantage. Basically, functional-level strategies are strategies for acquiring, developing, and managing organizational resources Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
18. Who takes Decesions? Corporate Strategy Business Level Strategy Functional Level Strategy Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
19. Strategy Implementation Strategy formulation results in a plan of action for the company and it various levels. Strategy implementation represents a pattern of decisions and actions that are in tended to carry out the plan. It involves Managing stakeholder relationships Managing organizational resources Creating an organizational design Creating organizational control systems in a manner that moves the business toward the successful execution of its strategies, consistent with its strategic direction. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
20. Strategic Control Strategic control refers to the processes that lead to adjustments in strategic direction, strategies, or the implementation plan, when necessary. Thus, managers may collect information that leads them to believe that the organizational mission is no longer appropriate or that its strategies are not leading to the desired outcomes.  On the other hand, a strategic-control system may tell managers that the mission and strategies are appropriate, but that they have not been well executed. In such cases, adjustments should be made to the implementation process. Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
21. Although larger companies tend to make use of the strategic management process, this process is also a vital part of decision making in smaller companies. In fact, it is important in companies of all sizes Example- Greater Construction Inc (See Page no:12) Chamara Bandara FCA,ACMA,MBA (USQ - AUS )
22. SMP Reference JeffereyS.Harrison, Strategic Management of Resources and Relationships, United States of America Chamara Bandara FCA, ACMA,MBA (USQ - AUS)