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SHRM Process

The strategic management process involves both strategic planning and implementation to help a company achieve its long-term goals. It consists of 7 steps: 1. Define the current business and choose its market terrain. 2. Perform external and internal audits to analyze opportunities and threats in the environment and the company's own strengths and weaknesses. 3. Formulate new business/mission statements based on the situation analysis. 4. Translate the mission into strategic goals for each department. 5. Formulate strategies to achieve the goals. 6. Implement the strategies through actions like hiring, building plants, and new products. 7. Evaluate performance to ensure the strategies are meeting goals and keep the

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81 views17 pages

SHRM Process

The strategic management process involves both strategic planning and implementation to help a company achieve its long-term goals. It consists of 7 steps: 1. Define the current business and choose its market terrain. 2. Perform external and internal audits to analyze opportunities and threats in the environment and the company's own strengths and weaknesses. 3. Formulate new business/mission statements based on the situation analysis. 4. Translate the mission into strategic goals for each department. 5. Formulate strategies to achieve the goals. 6. Implement the strategies through actions like hiring, building plants, and new products. 7. Evaluate performance to ensure the strategies are meeting goals and keep the

Uploaded by

Pallavi Pathak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Strategic Management

Process
Strategic Management Process
Strategy : The company’s long term plan for how it will balance its internal strengths and
weaknesses with its external opportunities and threats to maintain a competitive advantage

Strategic Management : The process of identifying and executing the organization’s mission by
matching its capabilities with the demands of its environment

Essence of strategic planning - “ Where are we now as a business, where we want to be, and
how should we get there”
Steps in Strategic Management

Strategic Management entails both strategic planning and implementation

The process of identifying and executing the organization’s strategic plan, by


matching the company’s capabilities with the demands of its environment
Steps in Strategic Management

The process consist of 7 steps


1-5, strategic planning
6-7, implementation
Step1 - define the current Business
Choose the terrain on which it will compete – what product it will sell, where it will sell them,
how to differentiate products from its competitors
Steps in Strategic Management

Strategic Planning
E.g Rolex and Seiko
Managers use statements like ??
Vision – A general statement of its intended direction that evokes emotional feelings in
organization members
Broad terms – “what we want to become”
Gives the direction
What the business should be
Steps in Strategic Management

Strategic planning
Mission – What our main tasks are now
Spells out who the company is, what it does, and where it’s headed
Step 2 – Perform external and internal audits
Analyzing external and internal situations
SWOTs
SWOT analysis
Steps in Strategic Management
Strategic planning
SWOT chart

Strengths Weakness
*Strong R&D *Aging Machinery

Opportunities Threats
*Expanding Market * Merger of
Competitors
Steps in Strategic Management

Strategic planning

Step 3 : Formulate new Business and mission statements


Based on situation analysis
What should our business be
What products
Where it will sell
How to differentiate from competitors
New vision and mission
Steps in Strategic Management

Strategic planning

Step 4 : Translate the mission into strategic goals


Operationalizing the mission for managers – strategic goals
For each department
Step 5 : Formulate strategies to achieve the strategic goals
Strategies, Course of action – how to move from the current business to what it wants to
Steps in Strategic Management

Strategy Implementation

Strategies act as bridge between these two


Step 6 : Implement the strategies
Translating strategies into action
Hiring, firing people, building plants, adding products, product lines
This include managerial functions like Planning, organizing, staffing, leading, and controlling
Steps in Strategic Management

Strategy Implementation

Step 7 : Evaluate performance


Management Monitors the extend to which the firm meeting its strategic goals
Strategic Control – keep strategy up to date
According to the environmental changes
Competitors action
Types of Strategies
Three types of strategic planning
A)Corporate strategy
Company wide level (corporate level)
Pepsico runs pepsi, fritto lay, and pizza hut, so needs a corporate level strategy
Diversification- expand by adding new product lines (Concentric, Horizontal & Conglomerate)
Vertical integration – expands by producing its own raw material (Backward & Forward)
Relationships among strategies in multiple business Firms

Corporate
Strategy

Business 1 Business 2 Business 3


Competitive Strategy Competitive Strategy Competitive Strategy

Functional Functional Functional


Strategies Strategies Strategies
Consolidation – reducing the company’s size
Geographic expansion – taking business abroad
B)Competitive Strategy (Business level )
E.g., Pizza hut
Next level down, each of the business need
How to build and strengthen the business’s long term competitive position in the market place
How pizza hut will compete with Papa John’s
Strategies like
Cost leadership, low cost leader, dell by direct selling
Differentiation, Firm seeks to be unique, Toyota by quality, woodland/timberland by adventure
shoes
Focusers, Carve out a market niche, like ferrari, by providing products and services customers
can get in no other way
Functional strategy
Business composed of departments – manufacturing, selling, finance, HRM
This identify the basic courses of action that each department will pursue in order to help the
business attain its competitive goals

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