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Concepts of Strategic Management

The document outlines key concepts of strategic management, including the framework for strategy formulation, defining strategic direction, and the importance of vision and mission statements. It details the stages of strategy formulation, which involve analysis, strategy formulation, and goal setting, followed by implementation and control of the strategy. Additionally, it emphasizes the need for measurable strategic objectives to guide organizations towards achieving their goals.

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Kim Fulledo
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16 views32 pages

Concepts of Strategic Management

The document outlines key concepts of strategic management, including the framework for strategy formulation, defining strategic direction, and the importance of vision and mission statements. It details the stages of strategy formulation, which involve analysis, strategy formulation, and goal setting, followed by implementation and control of the strategy. Additionally, it emphasizes the need for measurable strategic objectives to guide organizations towards achieving their goals.

Uploaded by

Kim Fulledo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CONCEPTS OF

STRATEGIC
MANAGEMENT

Thursday, February 27, 2025


QUICK
RECAP
Topic # 1
Defining Strategy and Strategic
Management

Topic # 2
The Ten Schools of Strategic
Management

Activity:
Case Digest/ Analysis
BANKO KABAYAN: From Vision to
Strategies
CONCEPTS OF STRATEGIC MANAGEMENT
AN OVERVIEW:
1. Framework for Strategy Formulation
2. Defining Strategic Direction
3. OrganizationVision
4. Mission Statement
5. Strategic Objectives
CONCEPTS OF STRATEGIC MANAGEMENT
The Strategy Formulation Framework is a
structured approach that organizations
use to develop and analyze potential
strategies. This framework helps identify,
evaluate, and choose the best strategic
options to achieve the organization’s
objectives.
The Strategic Management Framework is
a structured approach that organizations
use to develop and analyze potential
strategies. This framework helps identify,
evaluate, and choose the best strategic
options to achieve the organization’s
objectives.
The strategic management framework
provides a detailed overview of the
strategy process adopted by many
organizations.
As with the VMOSA framework, the first activity that needs to be
completed when following the Strategic Management
Framework is the creation of an organizational vision and mission.

The organization’s vision and mission then go on to be a constant


point of reference throughout the remainder of the organization’s
strategy process.
The second stage of this framework takes an
organization through the process of formulating
a strategy. This is done in several sub-stages.

a. Analysis Stage
b. Strategy Formulaton
c. Goal Setting
a. Analysis Stage
The first part of strategy formulation is analysis of the current state. It’s
impossible to decide on and create a strategy if you don’t understand
the lay of the land, so analyzing a wide range of factors is the first
stage of the strategic process.

At this stage organizations consider and analyze a range of factors


including: the wider economy, their industry and their own specific
capabilities, strengths and weaknesses. There are a wide range of
strategic analysis tools that can help with this stage of thinking.
b. Strategy Formulation

Once an organization understands the current state and has a


detailed analysis of their environment, their industry and themselves,
they can start to look forward and consider the opportunities and
threats that they may face.

With this combined understanding of the current state and some future
analysis, it becomes time to start thinking about what specifically the
organization will do. At this stage, the organization starts to focus on
how it will compete in its chosen market place or environment.
c. Goal Setting

The last part of the strategy formulation stage of the Strategic


Management Framework is to create goals and targets relating to
the organizations defined strategy. It’s great to know what you’re
going to do at a high level, but for your strategy to be useful it needs
to include specific detail to manage towards. To help with this, many
organizations use Balanced Scorecards.

Concepts like SMART goals and objectives may be helpful at this


stage.
The third stage of this framework focuses on the
implementation of strategy, which is considered
to have two sub-stages.

a. Implementing a Stategic Culture


b. Controlling your Strategic Delivery
a. Implementing a Strategic Culture

In this stage, the organization ensures it is effectively structured to deliver on its


strategy. The thinking here is that before you go and do something, you need
to have all your pieces in the right place.

At a practical level, this means that to be prepared to start delivering your


strategy effectively, you need to have the right leaders and individuals in your
organization, you need to have the right business units, you need to have the
right legal structures, you need to have the right processes and policies and
capital assets and you need the right strategic projects lined up to help you
deliver effectively. Once these pieces are in place, you can press the big
b. Controlling your Strategic Delivery

The last part of this model considers the need to effectively control
and deliver your objectives. Once you have all the right pieces in
place and you press the “start” button on your strategy, you need to
monitor and control your performance on a constant basis. Frequent
fine-tuning is required to ensure success and feedback plays an
important role in this.
CONCEPTS OF STRATEGIC MANAGEMENT
Strategic direction is the set of activities and
decisions a firm needs to make in order to achieve
its goals and objectives. Defining a strategic
direction ensures that owners, managers and
employees are focused on the objectives of the firm.
CONCEPTS OF STRATEGIC MANAGEMENT
A vision statement is a written document that
describes where an organization is going and
what it will look like when it gets there.

A vision states what the organization aspires to


become in the future.
CONCEPTS OF STRATEGIC MANAGEMENT
A mission statement is a simple and brief
description that encompasses the purpose of a
company defining its culture, goals, and values.

A definition of the company's business, who it


serves, what it does, its objectives, and its
approach to reaching those objectives
CONCEPTS OF STRATEGIC MANAGEMENT
Strategic objectives are high-level and
measurable goals outlining what an organization
wants to achieve, with a clearly defined
deadline. They help organizations create
strategic roadmaps, initiatives, and projects that
are aligned with the company's strategy and
vision
Thursday, March 6, 2025
50 Items
Serve as Review for the Midterm Exam
February 21, 2025

Make advance reading for the following:


Framework for Strategy Formulation
Defining Strategic Direction
OrganizationVision
Mission Statement
Strategic Objectives

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