Give the processes of strategic management

1 Establishing the Organization direction
There are three main indicators that show the direction in which an organization is moving; these
are the vision, mission and objectives. The mission is the purpose for which or reason why an
organization exists. Vision is the future view of the organization – where the organization would
like to be in the future. Objectives are the targets that organizations has chosen.
After management has performed environmental analysis, it pinpoints the firm’s strength,
weakness, opportunities, and strength. It is often better to establish their firm for modifying the organization direction. Management should therefore know what comprises the organization’s
mission statement and understand the nature of the organization’s objectives.

2 Environmental Analysis Process
This is the process of monitoring the organization environment to identify present and future
threats and opportunities that may influence the firm’s activities to reach its goals. In this context The organization environment encompasses all those factors both outside and inside the
organization that can influence it progress towards attaining its goals. Different tools available for this include: Value Chain analysis, Resources and Capability Analysis, SWOT analysis, PESTEL analysis, the Porter’s Five Forces, and the Porter’s Diamond.

3. Strategy Formulation
Strategy is defined as a course of action aimed at ensuring the organization achieves its
objectives. Strategy formulation is a process of designing and selecting strategy that lead to the achievement of organization objectives.
The central focus of organizational strategy is how to deal with competition in order to formulate organizational strategies properly, the manager must understand the following approaches: Critical questions analysis, the B.C.G Growth Share Matrix, the Ansoff matrix, the G.E multifactor portfolio matrix (G.E – General electric), Scenario planning, decision tree, the
modified Ansoff matrix.

4. Strategy Implementation
This step involves putting into action the logically developed strategies that emerge from the
previous step of the strategic management process. If organizational strategies are not
implemented well, the firm will fail to achieve its objectives. In order to implement strategies
well, it is important for the managers to be aware of the following issues:
• How much change is necessary to be introduced within the organization when implementing a
new strategy (Change and strategy implementation).
• How best to deal with organization culture (Culture and strategy implementation).
• How strategy implementation and various types of structures are related (Structure and strategy
implementation).
• The different implementation approaches a manager can follow and the skills that are necessary
for those managers who want to implement strategies successfully (Implementation approach,
leadership style and strategy implementation).
Some approaches and tools that can be used in the stage include: McKinsey 7’s model, Hofstede
Culture model, Kurt Lewin’s model, Kotter’s 8 steps towards change, ADKAR model.

5. Strategic control
This is a type of organizational control that focuses on monitoring and evaluating the strategic
management process to ensure that it is functioning properly. In order to undertake this activity
successfully, the manager must be aware of not only the process of strategic control but also the
role of strategic audit. Strategic audit involves the assessment of the organization environment.
The manager must also be aware of the role of MIS and budget as well as balance score card and
how they can complement this strategic control process. Some useful tools and approach here
include the balanced score card, Total Quality Management, business process re-engineering.

---

maurice.mutuku answered the question on August 1, 2019 at 05:46