Strategic Management Assignment

STRATEGIC MANAGEMENT ASSIGNMENT
Submitted by: ATHIRA BABU T K

C0GMBA3036
Submitted to: Mrs. DONA JAMES
Submission date: 25/04/2022
STRATEGIC MANAGEMENT PROCESS
The business strategies are objectives oriented and are directed towards organizational goal. To
formulate strategies the business should know the objectives that are to be pursued.Strategic
management is a dynamic process .it is continual, evolving, iterative process. it means that it cannot
be a rigid, stepwise collection of few activities arranged in a sequential order rather it is a
continually evolving mosaic of relevant activities. Managers perform these activities in any order
contingent upon the situation they face at a particular time. And this is to be done again & again
over the time as the situation demands. There are four major phases of strategic management
process which are as under.
A) Establishment of strategic intent.
B) Formulation of strategies.
C) Implementation of strategies.
D) Strategic evaluation.
A. Establishment of strategic intent:

It is a first step in strategic management Process. It involves the hierarchy of objectives that an
organization set for itself. Generally it includes vision, mission, business definition and objectives
establishing the hierarchy of strategic intent which includes -
1. Creating and communicating a vision.
2. Designing the mission statement.
3. Defining the business.
4. Adopting the business model.
5. Setting objectives.
The hierarchy of strategic intent lays the foundation for strategic management of any organization.
The strategic intent makes clear what organization stand for. In the hierarchy, the vision intent
serves the purpose of stating what the organization wishes to achieve in the long run. The mission
relates the organization to the society. The business definition explains the businesses of the
organization in terms of customer needs, customer groups and alternative technologies. The
business model clarifies how the organization creates revenue. And the objectives of the
organizations state what is to be achieved in a given period of time.
B. Formulation of strategy:
Formulation of strategy is relates to strategic planning. It is done at different levels i.e. corporate,
business, and operational level. The strategic formulation consists of the following steps.
1. Framing of mission statement: Here the mission states the philosophy and purpose of the
organization. And all most all business frames the mission statement to keep its activities in the right
direction.
2. Analysis of internal & external environment: The management must conduct an analysis of
internal and external environment. Internal environment consists of manpower, machines, and other
sources which resides within the organization and easily alterable and adjustable. These sources
reveal the strength and weakness of the organization. External environmental factor includes
government, competitions, consumers, and technological developments. These are not adjustable and
controllable and relates to organizations opportunities and threats.
3. Setting of objectives: After SWOT analysis, the management is able to set objectives in key
result areas such as marketing, finance, production, and human resources etc. While setting
objectivities in these areas the objectives must be realistic, specific, time bound, measurable, and
easy attainable.
4. Performance comparison: By undertaking gap analysis management must compare and analyze
its present performance level with the desired future performance. This enables the management to
find out exact gap between present and future performance of the organization. If there is adequate
gap then, the management must think of strategic measures to bridge the gap.
5. Alternative strategies: After making SWOT analysis and gap analysis management needs to
prepare (frame) alternative strategies to accomplish the organizational objectives. It is necessary as
some strategies are to be hold and others to be implemented.
6. Evaluation of strategies: The management must evaluate the benefits and costs of each every
alternative strategy in term of sales, market share, profit, goodwill and the cost incurred on the part
of the strategy in terms of production, administration, and distribution costs.
7. Choice of strategy: It is not possible to any organization to implement all strategies therefore
management must be selective. It has to select the best strategy depending on the situation and it has
to consider in terms of its costs and benefits etc.
C. Strategy Implementation
Once the strategies are formulated the next step is to implement them. The strategic plan is put into
action through six sub processes known as project, procedural, resource allocation, structural,
behavioral, and functional implementation. The project implementation deals with the setting up of
organization. Procedural implementation deals with the different aspects of the regulatory
framework within which organizations have to operate. Resource allocation relates to the
procurement and commitment of resources for implementation. The structural aspect of
implementation deals with the design of organizational structures and systems and reorganizing so as
to match the structure to the needs of strategy. The behavioral aspects consider the leadership style
for implementing strategies and other issues like corporate culture, corporate politics, and use of
power, personal values and business ethics and social he responsibilities. The functional aspects
relates to the policies to be formulated in different functional areas. The operational implementation
deals with the productivity, processes, people and pace of implementing the strategies.For any
strategy implementation there are five major steps. Such as
1. Formulation of plans.
2. Identification of activities.
3. Grouping of activities.
4. Organizing resources.
5. Allocation of resources.
D. Strategic Evaluation:
Strategic evaluation appraises the implementation of strategies and measures organizational
performance. The feedback from strategic evaluation is meant to exercise control over the strategic
management process. Here the managers try to assure that strategic choice is properly implemented
and is meeting the objectives of the firm. It consists of certain elements which aregiven below.
1. Setting of standards: - The strategists need to set standards, targets to implement the strategies.
it should be in terms of quality, quantity, costs and time. The standard should be definite and
acceptable by employees as well as should be achievable.
2. Measurement of Performance: - Here actual performances are measured in terms of quality,
quantity, cost and time.
3. Comparison of Actual Performance With Set Targets: - The actual performance needs to be
compared with standards and find out variations, if any.
4. Analyzing Deviation and Taking Corrective Measures: - If any deviation is found then higher
authorities tries to find out the causes of it and accordingly as per its nature takes corrective steps.
Here some time authority may re-set its goals, objectives or its planning, policies and standards.
CONCLUSION
Strategic management provides the framework for all the major business decisions of an enterprise
such as decisions on businesses, products and markets, manufacturing facilities, investments and
organizational structure. In a successful corporation, strategic planning works as the Path finder to
various business opportunities; simultaneously, it also serves as a corporate defence mechanism,
helping the firm avoid costly mistakes in product market choices or investments.
Strategic management has the ultimate burden of providing a business organization with certain core
competencies and competitive advantages in its fight for survival and growth.

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STRATEGIC MANAGEMENT ASSIGNMENT

Submitted by: ATHIRA BABU T K

A. Establishment of strategic intent:

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