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Questions and Answers
What is STEP 1 of the strategic management process?
What is STEP 1 of the strategic management process?
Which type of analysis is included in the SWOT analysis?
Which type of analysis is included in the SWOT analysis?
What does a mission statement define?
What does a mission statement define?
Which of the following is NOT a component of a mission statement?
Which of the following is NOT a component of a mission statement?
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What is the purpose of conducting an external analysis in the SWOT analysis?
What is the purpose of conducting an external analysis in the SWOT analysis?
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Why is it important for managers to conduct a SWOT analysis?
Why is it important for managers to conduct a SWOT analysis?
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What is the purpose of managers conducting an external analysis in STEP 2?
What is the purpose of managers conducting an external analysis in STEP 2?
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How are an organization's resources different from its capabilities?
How are an organization's resources different from its capabilities?
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What is the main purpose of conducting an internal analysis?
What is the main purpose of conducting an internal analysis?
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What do managers identify after completing an internal analysis?
What do managers identify after completing an internal analysis?
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What is the combined external and internal analysis of an organization called?
What is the combined external and internal analysis of an organization called?
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What should managers do after completing the SWOT analysis?
What should managers do after completing the SWOT analysis?
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Study Notes
Strategic Management Process
- The strategic management process consists of six steps: strategy planning, implementation, and evaluation.
- Even the best strategies fail if not implemented or evaluated properly.
Step 1: Identify the Organization's Current Mission, Goals, and Strategies
- The mission is a statement of the organization's purpose.
- Defining the mission helps managers identify what the organization is in business to do.
- Examples of mission statements: Avon's mission is to "be the company that best understands and satisfies the product, service, and self-fulfillment needs of women on a global level," and the National Heart Foundation of Australia's mission is to "reduce suffering and death from heart, stroke, and blood vessel disease in Australia."
- Components of a mission statement:
- Target customers
- Markets
- Goals and strategies
- Philosophy
- Concern for public image
- Products or services
- Technology
- Self-concept
- Concern for employees
Step 2: External Analysis
- Conduct an external analysis to:
- Know what the competition is doing
- Understand how pending legislation might affect the organization
- Determine the stability of the local labor supply
- Examine all components of the environment, including:
- Economic
- Demographic
- Political/legal
- Sociocultural
- Technological
- Global
- Identify opportunities and threats
Step 3: Internal Analysis
- Conduct an internal analysis to gather critical information about an organization's resources and capabilities.
- Organization's resources:
- Financial
- Physical
- Human
- Intangible
- Organization's capabilities:
- Skills and abilities in doing work activities
- Core competencies (major value-creating capabilities)
- Identify organizational strengths and weaknesses.
SWOT Analysis
- Combines external and internal analyses to identify:
- Strengths
- Weaknesses
- Opportunities
- Threats
Step 4: Formulate Strategies
- Formulate strategies that:
- Exploit an organization's strengths and external opportunities
- Buffer or protect the organization from external threats
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Description
Learn about the strategic management process which involves six steps: strategy planning, implementation, and evaluation. Discover how each step contributes to the success of an organization's strategies. Understand the importance of proper implementation and evaluation in achieving strategic goals.
