The Strategic Management Process

In the current occupation environment, k nowledge evolves rapidly and the profitable life span of formational skills is decreasing, which elbow room survival and competitiveness of an organization is linked to its ability to learn and include its findings in their strategical guidance fulfill. Having cited the criticality of strategic charge on the survival of todays patronage, it is of paramount importance that in this weeks issue I deal on the subject of strategic Management Process.Key Definitions I would alike to start by defining virtually key words and phrases that argon associated with the strategic management process. A scheme is a keep callers long-term plan for how it volition balance its native strengths and weaknesses with its egressside opportunities and threats to maintain a competitive advantage. Strategic management is the process of identifying and death penalty the organizations flush by matching its capabilities with the demands of its environm ent.Strategic planning is the process by which the channelise members of an organization envision its prox and develop the necessary procedures and operations to fulfill that future (Goodliest, teal, 1992). This definition takes us away from the notion that strategic arrive is a staff Job and focuses us more on process that requires senior leaders of an organization to set its strategic bearing. Strategic plans atomic number 18 important because strategic planning to a few elite in an organization, it should be noted that there different levels of strategic planning.These atomic number 18 merged level strategies, business level strategies and functional level strategies. The concept of strategic management builds on the definition of strategic planning, recognizing that although planning is the prelude of strategic management, it is not sufficient if it is not followed by the plowmen and implementation of the plan and the valuation of the plan in action. Strategic manageme nt is therefore a systems everyplaceture to identifying and making the necessary changes and measuring the organizations performance as it moves toward its vision.It is the process where managers make up an organizations long term direction, set specific performance objectives develop strategies to grasp these objectives in light of all the relevant internal and asidedoor(a) circumstances, and get down to execute the chosen direction. The strategic management process is Hereford a series of steps that formulates the strategic planning, implementation and evaluation. This process is depicted by many model/drawings which basically depict the strategic management steps. nigh(prenominal) of these models only differ in to the extent to which they simplify the process absolutely they generally agree on major elements.Strategic Management Process pose Fig. 1 It suffer be seen from fig 1 above that strategic management process is an iterative process as depicted by the arrows. Strategic planning comprises (see Figure 3-1) the first 5 of 7 strategic management tasks (1) Defining the business and developing a session, (2) Evaluating the firms internal and orthogonal strengths, weaknesses, opportunities, and Threats, (3) formulating a modernistic business relation, (4) translating the military tutelage into strategic goals, and (5) formulating strategies or courses of action.The entire 7- pace 1 Define the Current Business Every company must choose the terrain on which it will compete?in particular, what products it will sell, where it will sell them, and how its products or services will differ from its competitors. Therefore, the most basic strategic decisions managers make involve deciding what business their firms should be in For instance, in term of the products or services theyll sell the geographical locales in which theyll sell them, and how theyll distinguish their products or services from competitors.They ask, Where are we now in terms o f the business were in, and what business do we want to be in, given our companys opportunities and threats, and its strengths and weaknesses? Managers then choose outline to drive the company to reach out the vision. This whitethorn be better enshrined in a vision statement as a sort of shorthand to married how they see the business down the road. The companys vision is a general statement of its intended direction that shows, in broad terms, what they want to become. Two management gurus, Warren bennie and Bert Mans say, To choose a direction, a leader must first squander developed a mental image of a possible and preferred future state for the organization. This image, which we call a vision, may be as vague as a dream or as minute as a goal or mission statement. The critical confidential information is that a vision articulates a view of a realistic, credible, attractive future or the organization, a condition that is better in some important ways than what now exists.Vis ions are usually in longer terms, broader images managers similarly formulate mission statements to communicate the purpose of their (company) present existence. Whereas visions usually discharge out in very broad terms what the business should be, the mission lays out in broad terms what their main tasks are now. The mission statement of the company that I work for is To be the preferred supplier of electricity regionally and abroad. The mission statement is, to bring convenience to our cute customers through provision of electricity and related services. maltreat 2 get along External and Internal Audits (Environmental scanning).Strategic planning starts by methodically analyzing external and internal situations. The strategic plan should provide a direction for the firm that makes sense, in terms of the external opportunities and threats the firm faces and the internal strengths and weaknesses it possesses. To facilitate this strategic external/internal audit or environmen tal scanning, we use SOOT analysis. This involves victimisation a SOOT chart to impel and organize the process of identifying company Strengths, helplessnesses, Opportunities, and Threats. When doing internal audits or scan companies should check for their strength and weakness.They should capitalist on their strength to create a competitive advantage in their industry, strengths can be in the form of a hardworking organizational glossiness which they can ride upon in order to have an edge over other like firms. However companies should also not turn a blind eye on their weaknesses. Weakness doesnt mean that one is incapable(p) barely being aware of them calls for a decision to avert them. Weakness can be in the form of lake of strategic objectives that are meant to let down the effects of the weaknesses. External audits scan for Opportunities and Threats.These can be at small and macro levels. At macro level businesses should look into the Political, Economic, Social, Techni cal, Environmental and juristic (PESTLE) environment for threats and opportunities. Step 3 Formulate New Business and bearing Statements In light of the situation analysis (environmental scanning), leaders/managers should determine what their new business should be, in terms of what products it will sell, here it will sell them, and how its products or services will differ from its competitors? This may call for establishing or crafting new billing and Vision statements to stir the company.Step 4 Translate the Mission into Strategic Goals Saying the mission is to provide electricity is one thing implementing that mission for your managers is another. The firms managers engage strategic goals. What exactly does that mission mean, for each department, in terms of how well boost electricity supply? The Government of Zanzibar has recently adopted a new appraisal system or all parallels, government ministries and establishment under its new economic blueprint called JIM-ASSET. The s ystem is called Integrated Results establish Management System.Under this system organizational missions are translated into tangible short-term, mid-term and long-term goals which are measurable and specific. Strategic goals are the steps to the envisioned future. Not having them is like sitting for a meeting and coming up with no resolutions or action items. Step 5 Formulate Strategies to Achieve the Strategic Goals Again, a strategy is a course of action. It shows how the enterprise will move from the business it is in now to the business it wants to be in (as laid out by its vision, mission, and strategic goals), given the firms opportunities, threats, strengths, and weaknesses.The strategies bridge where the company is now, with where it wants to be tomorrow. The exceed strategies are concise enough for the manager to express in an comfortably communicated phrase that resonates with employees. These are best described as strategic objectives. belongings the strategy clear an d concise helps ensure that employees all hare that strategy and so make decisions that are consistent with it. Specific performance targets are needed in all areas affecting the survival and success of a company, and they are needed at all levels of management.The act of establishing formal objectives not only converts the direction the company is headed into specific performance targets to be progress tod but also guards against drift, aimless activity, confusion over what to accomplish and loss of purpose. Step 6 Implement the Strategies What we think, know or believe in is, in the end of little consequence. The only consequence is. What we do. (Hands, 1995). Strategy implementation means translating the strategies into actions and results?by actually hiring (or firing) lines.Strategy implementation involves drawing on and applying all the management functions planning, organizing, leading, and controlling (POOL). According to Tom Peters and Robert Waterman, a model termed the S even S Model provides a framework of implementation of a strategic change. construction changes may have to be made to cope with strategic changes, charm systems may need also with the new strategic direction. Skills may need to be upgraded or reshuffled properly. Style or culture of management may need also to be readjusted accordingly.All these have their energy directed to achieve the strategic goals (Vision) as depicted on fig 2 above. Step 7 Evaluate Performance Strategies dont always succeed. For example, TN-Holdings failed when it massively rolled out its Subs across the nation in order to be closer to where its customers are. The strategy failed dismally in the following year because of a huge runniness crunch that is currently bedeviling our economy?because of evaluation management quickly re-strategists and came up with a new business model. Managing strategy is an ongoing process.