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Title: Strategic Model


1
University of Perpetual Help System JONELTA
Biñan Campus Graduate School
Strategic Management Models Chapter 7
Reported by Liezel A. Palmes

MBA 1(2nd Sem.)
Professor Allan B. Amparo PhD Subject
Strategic Management
2
What do you mean by Strategy?
Strategy refers to the plans made and action
taken to enable an organization to fulfill its
indented objectives.
  • Without strategy Manager have
  • No thought-out course to fallow
  • No roadmap to manage by
  • No action program produce the intended result

3
Strategic Management Model
  • is also known as strategic planning model.? A
    strategic planning model is selected for the
    purpose of formulating and implementing the
    strategic management plan of a particular
    organization. ?
  • The term strategic planning(SP) originated in the
    1950s and was very popular bet the mid 1960s
    and the mid 1970s during this year strategic
    planning was widely believed to be the answer for
    all problems.
  • SP is essence, a companys game plan.
  • Although there are variations of the strategic
    management model, most are divided into six
    stages.

4
The Strategic Management Models
The Strategic Management Model espoused or
described the actions according to specific
beliefs?
5
Fundamentals of Strategic Management
6
Whats the Difference between Strategic Planning
and Operational Planning?
What are the examples of Strategic questions?
  • Why are we here?(purpose, mission)
  • What are we to do? (role, niche)
  • Who is to benefit?(target population, customer)
  • What results are we aiming for?(Key outcomes)
  • How are we to be? (values, guiding principles)
  • What are the key bold moves we need to make at
    this time, to use the power and resources we can
    access for best impact? (strategies, priorities)

7
External Environmental Opportunities and
Threats
Fundamentals of Strategic Management
However, exist outside of the company and are not
within its range of control.
macro environment
Technology changes
industry environment
Legislation and regulations
Price competitiveness
Specific E.g.
Changes in customers tastes
Technology changes
Competitions
Population demographic
Social values and lifestyle
The economy_at_large
(ME)The major external and uncontrolled factors
that influence an organization decision making
and effects its performance and strategies.
(IE) The overall economic regulating social
political conditions that affect all participants
in an industrial market.
Strategic Management Models-Chapter 7
8
Fundamentals of Strategic Management
  • THE INTERNAL ENVIRONMENT are controlled by the
    company and may include elements such as
    organization structure and workplace.

Analyzing your organization's internal
environment, includes the values and expectations
of your firm's stakeholders its mission, goals
and objectives and its resources.
Vision A vision explains where the organization
wants to be in the future ,its objectives and
steps to be taken to attain its goal. A vision
statements for the organization and its members
while a mission is for the customer and clients.
A vision statement must have a fallowing features
unambiguous
clear
shorter
harmonize
rationale
9
Fundamentals of Strategic Management
Five types of resources they can employ toward
achieving their objectives.
  • management, supervisors, production employees,
    staff specialists, sales people, engineers
  • systems, procedures, management techniques,
    decision-making models, company reputation, good
    will

10
Fundamentals of Strategic Management
Mission The primary responsibility of Filinvest
Land is to the people that inhabit the cities,
communities, and homes it has created. Filinvest
will continually contribute to the economic
development of society and will function as a
good corporate citizen.
Objectives Filinvest shall provide its customers
with universally competitive products that are
valued not only for quality but in terms of
affordability for all income levels. Only through
research and development, innovation, and the use
of appropriate technology can high quality
services be provided. 
11

Fundamentals of Strategic Management
STRATEGY FORMULATION (SF)refers to the process of
choosing the most appropriate course of action
for the realization of organizational goals and
objectives and thereby achieving the
organizational vision. 
  • in which companies decide which line or lines of
    business to engage in.
  • often receives more attention than corporate
    strategy.

?management need to formulate and implement
strategies for each functional area. For
effective implementation, strategists have to
provide direction to functional managers
regarding the plans and policies to be adopted.
12

Fundamentals of Strategic Management
Functional Strategy Formulation
Are based on the functional capabilities of an
organization.
  • Their importance in the process of Strategic
    implementation is identified.
  • The (FM) need guidance fro the business fro the
    business strategic in order to make decisions.

13

Fundamentals of Strategic Management
STRATEGY FORMULATION (SF)refers to the process of
choosing the most appropriate course of action
for the realization of organizational goals and
objectives and thereby achieving the
organizational vision. 
The process of strategy formulation basically
involves six main steps.
 is to set the long-term objectives of the
organization.
is to evaluate the general economic and
industrial environment in which the organization
operates.
an organization must practically fix the
quantitative target values for some of the
organizational objectives.
the contributions made by each department or
division or product category within the
organization is identified and accordingly
strategic planning is done for each sub-unit.
includes discovering and analyzing the gap
between the planned or desired performance.
after considering organizational goals,
organizational strengths, potential and
limitations as well as the external opportunities.
14
STRATEGIC IMPLEMENTATION
Fundamentals of Strategic Management
Strategy implementation is the translation of
chosen strategy into organizational action so as
to achieve strategic goals and objectives. 
Organizational structure allocates special value
developing tasks and roles to the employees and
states how these tasks and roles can be
correlated so as maximize efficiency, quality,
and customer satisfaction-the pillars of
competitive advantage.?
An organizational control system? equips
managers with motivational incentives for
employees as well as feedback on employees and
organizational performance. Organizational
culture refers to the specialized collection of
values, attitudes, norms and beliefs shared by
organizational members and groups.
Steps in implementing a strategy
  • Developing an organization having potential of
    carrying out strategy successfully.
  • Disbursement of abundant resources to
    strategy-essential activities.
  • Creating strategy-encouraging policies.
  • Employing best policies and programs for constant
    improvement.
  • Linking reward structure to accomplishment of
    results.
  • Making use of strategic leadership.

(SI) poses a threat to many managers and
employees in an organization. New groups (formal
as well as informal) are formed whose values,
attitudes, beliefs and concerns may not be known
15
  • Strategy Formulation
  • Strategy Implementation

vs
16
STRATEGIC CONTROL
Fundamentals of Strategic Management
Strategic control focuses on the dual questions
of whether (1) the strategy is being
implemented as planned. (2) the results produced
by the strategy are those intended.
(SP)-refers to the traditional review and
feedback stages which constitutes the last step
in the strategic management process.
Strategy Evaluations (Control) concerned
primarily with traditional controls processes
which involves the review and feedback of
performance to determine if plans, strategies,
and objectives are being achieved, with the
resulting information being used to solve
problems or take corrective actions.
17
The Strategy-Making, Strategy-Executing Process
Crafting and executing strategy are the heart and
soul of managing a business. The process of
crafting and executing a companys strategy
consists of five interrelated managerial stages
Task 1
Task 2
Task 3
Task 4
Task 5
Craft a Strategy to Achieve Objectives
Implement and Execute Strategy
Monitor Evaluate and Take Corrective Action
Develop a Strategic Vision and Mission
Set Objectives
Revise as needed in light of the companys
actual performance, changing conditions, new
opportunities, and new ideas
Figure 50. The Five Tasks of Strategic
Management-Thompson and Strickland Model
18
Perform External Audit
Perform Internal Audit
Figure 51.Comprehensive Strategy Management by
F.R. David Model
19
Fundamentals of Strategic Management
A company's strengths and weaknesses must be
evaluated not in absolute terms, but in
relationship to its competitive environment.
1. Discuss organizational culture as a source of
competitive advantage. 2. What is the purpose of
goals and objectives? 3. How do mission
statements of high-performing firms differ from
those of low performers? 4. Describe the
characteristics of effective vision
statements. 5. It has been said that mission
statements by themselves are of very little
value. Comment. 6. Why is forecasting important
to strategic management? 7. Define "scenario
analysis." 8. How do issues analyses, scenarios,
and contingency plans relate to surprise
management? 9. What are "contingency plans" and
why are they important? 10. "Organizations in
dynamic environments cannot perform strategic
management." Comment.
20
Fundamentals of Strategic Management
Making Better Strategic Decisions
Evaluate Selected Strategies
Evaluate current performance
Strategic Decision Making Process
Review corporate governance
Implement Selected Strategies
Review corporate governance
Generate, evaluate and select the best
alternative strategy
Analyze Strategic Factor (swot)
21
Nevertheless, it has been proved that no
strategic planning model is perfect. Every
company designs its own strategic planning model
frequently by choosing a model and transforming
it as the company advances into formulating its
strategic management plan procedures. 
Without a strategy, an organization is like a
ship without a rudder, going to around in circle.
Its like a trap it has no place to go.
-Joel Ross and Michael Kami
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