THE STRATEGIC MANAGEMENT PROCESS Strategic management is a process rather than an event, because it involves a number of stages, as opposed

d to being a one spectacular event. The stages in their logical order are as follows: 1. Determining the vision and mission of the firm. Vision and mission provide direction and scope for the firms activities. Vision and mission also provide guidance for the firms strategic objectives and strategies.

2. Situation Analysis This includes environmental analysis. External analysis aims at identifying opportunities and threats in the external environment. Internal analysis, on the other hand, aims at identifying strengths and weaknesses in a firms resources. 3. Setting strategic objectives.

These should take into account factors identified in environmental analysis and should be in harmony with the firms vision and mission.

Strategic objectives should address environmental opportunities and threats, as well as, the strengths and weaknesses of the firm.
2

4. Strategic Analysis and Choice Strategy is aimed at achieving a firms strategic objectives. Strategic analysis and choice occurs at two major levels, namely: o Corporate level o Business level At corporate level, the analysis and choice is mainly concerned with determining the appropriate business portfolio. At business level the chief concern is how to compete in a business i.e. competitive strategy.

5. Strategy Implementation Operationalizing strategy or developing functional plans and tactics, sometimes known as operational plans and tactics is the first step in strategy implementation. These translate a strategy into plans and tactics which are implementable. Each functional area develops plans and tactics necessary for implementing a strategy. It is important here to match strategy to the firms resources. The plans and tactics are usually referred to as operational or functional strategy and is the third level of strategic management.
4

 Institutionalizing strategy is the second major step in strategy implementation. Success in strategy implementation requires carefully matching each of the following institutional factors to strategy: o Structure o Culture o Leadership o Policies A strategy may be good, but could fail if not properly implemented.

6. Evaluation and Control of Strategy This requires continuous monitoring and taking corrective action at various phases of strategy implementation. Implementation should be monitored carefully to detect or identify problems requiring corrective action. Corrective action should be proactive rather than reactive. The strategic management process is the framework adopted in this course. A framework for a course may be defined or undefined. Often instructors use undefined frameworks. Definition of a course framework is based on the logic adopted in the presentation of the course. For DSM 601 that logic is the strategic management process. This is the most appropriate for the course.

Note: In practice, the strategic management process usually involves the following in their logical order: Situation or Environmental Analysis Identifying strategic objectives Strategy Analysis and choice Strategy Implementation Strategy Evaluation and Control. This is because the vision and mission are usually enduring or long lasting and not normally affected by environmental changes.