Professional Documents
Culture Documents
Contents
1. Definitions of Strategy and Strategy Mgt
2. Levels of Strategy (briefly)
3. Characteristics of Strategic decisions
4. Advantages and challenges of Strategic Management
5. Strategic Management Process Model Learning Objectives
Define strategy and strategic management;
Describe the different levels of strategy and their importance;
Discuss the nature and values of strategic management;
Explain the strategic management process Reflection
What does strategy mean?
How do you explain strategic management? Definition of Strategy
Strategy refers to the formulation of basic organizational missions, purposes and
objectives; policies and program strategies; and the methods needed to ensure that
strategies are implemented to achieve organizational ends. A more comprehensive
definition of strategy (Quinn, 1980)
Strategy as a pattern or plan to integrate the organizations major goals, policies,
and action sequences into a cohesive whole
Strategy as a tool to organize and allocate an organizations resources in a viable
way based on its internal competencies and shortcomings, as well as anticipated
changes in the environment
Note: Goals/objectives state what is to be achieved and when results are to be
accomplished, but they do not state how the results are to be achieved.
Policies are rules or guidelines that express the limits within which action should
occur. Programs specify the step-by-step sequence of actions necessary to
achieve major objectives within the limits set by the policy
Strategic decisions are those that determine the overall direction of an enterprise
and its ultimate viability in light of the predictable & unpredictable changes that
may occur in its most important environment Summary:
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ETCsVision:
is to see the entire country connected with state-of-theart ICT infrastructure that
provides highly qualitative, reliable and secure communication services at
affordable prices.
ETC shall be an internationally recognized agile, strong and vibrant world class
ICT infrastructure and service provider. 54 Basic Components of St. Mgt Example
contd
By the year 2010, we will be the most profitable airline in Africa
We want to be the most successful airline in Africa
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It requires people to think beyond the known, & provides the context for judging
the future success of the org.
It helps the org. members become initiated for change & consider it as an
opportunity for improving their performance. 60 Basic Components of St. Mgt The
Mission & Legal Mandates
Mission is defined as the fundamental purpose of the organization & its scope of
operation.
Organization mission is written in terms of the general set of products & services
the organization provides & the markets & clients it serves. 61 Basic Components of
St. Mgt Mission contd
Clear mission statement, in addition to legislation, serves to define the mandates
(the context within which the organization operates).
Operative mandates are subject to continuous alteration & expansion. 62 Basic
Components of St. Mgt Formulating the Mission Your organizations mission
statement is a concise introduction to its work. It describes an organization in terms
of its:
Purpose: what the organization seeks to accomplish (WHY DOWE EXIST?)
Target Audience: the target group or beneficiaries of the organizations work
(WHO DOWE SERVE?) 63 Basic Components of St. Mgt Formulating the Mission
(Contd)
Business: the main method or activity through which the organization tries to
fulfill this purpose (WHAT SERVICES DO WE PROVIDE and HOW DO WE GO ABOUT
PROVIDING THEM?)
A mission is subject to continuous alteration & expansion. 64 Basic Components
of St. Mgt Formulating the Mission (Contd) Points of emphasis when articulating
mandates & missions:
Awareness of legal constraints & responsibilities of all persons of an organization
Definition of stakeholders any group of individuals who are affected by or can
affect the future of the organization.
It should be recognized that the vision statement already defined is embedded in
the mission and mandate and also define the structure and the general role of the
organization. 65 Basic Components of St. Mgt Mission contd Mission serves
several functions:
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Does the statement effectively describe the unit to those who work within it as
well as to those external to it? 69 Basic Components of St. Mgt Example Mission
Statement
TheAddis Ababa City Government mission statement: The core mission of the
city government is to ensure welfare, safety & security of the Addis Ababa city
residents, through improved serviced delivery and good governance 70 Basic
Components of St. Mgt Example contd CBEs Mission Our mission is to
profitably play a major role in the financial service cost-effectively for all sectors of
the economy and thereby support the long term development of the nation. 71
Basic Components of St. Mgt Vision Vs Mission Vision:
An image of the future we seek to create.
A vision statement describes where an organization/a region wants to see itself in
the future; in the next 10 or 20 years if everything goes as hoped.
Mission = purpose, reason for being, the role of the organization in the society. 72
Basic Components of St. Mgt Vision Vs Mission Example
Mahatma Gandhi had a simple vision of getting rid of British rule in India and
establishing a vibrant democracy in India.
He had a specific image of post British India in his mind and he talked of that
image at every opportunity and to every one. 73 Basic Components of St. Mgt
Vision Vs Mission Example (Contd)
Their mission statement was not to use any violence and to love even the
enemy.
He and his followers defeated British without using any weapons.
Nelson Mandela used the same tactics in South Africa later. 74 Basic
Components of St. Mgt Values
Every organization should be guided by a set of values.
Values are beliefs which your organization's members hold in common and
endeavor to put into practice.
The values guide your organization's members in performing their work.
Specifically, you should ask, "What are the basic beliefs that we share as an
organization?" 75 Basic Components of St. Mgt Values (Contd) Values are often
rooted in ethical themes, such as honesty, trust, integrity, respect, fairness, etc.
Values should be applicable across the entire organization Values may be
appropriate for certain best management practices best in terms of quality,
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Generally these are issues that cannot be resolved through a quick fix. The
selection of issues is important because it determines the range of decisions and
strategies we will consider in the future. 82 Basic Components of St. Mgt Identifying
critical /Strategic Issues (Contd...)
Critical issues can reflect:
Long standing problems in the organization/region, members served or recent
events which are anticipated to have a significant impact on the regional
government and/or people served.
Impediments that must be overcome in order for the organization/regional
government to meet its goals-i.e., problems to be solved; or,
Watersheds/major shifts in thinking that can change the direction of an
organization/regional government or the nature of its environment and challenge
business as usual. 83 Basic Components of St. Mgt How to Identify Strategic Issues
In some instances, an organization is already aware of the critical issues that the
strategic planning process must help it address.
In most situations, the planning team discern critical issues as they work on
external, market and internal assessments.
Identified by reviewing the SWOT analysis and determining the factors which are
crucial in their success. 6-8most important issues:
Which have the biggest impact
Which are the most immediate
Which are closest to the shared values 84 Basic Components of St. Mgt Examples
of Strategic Issues Examples of critical issues from an affordable housing
development organization:
What should the balance be between the Affordable Housing Enterprise's role as
an independent developer versus a provider of technical assistance on housing
development?
How should the Affordable Housing Enterprise diversify its revenue base?
Should the Affordable Housing Enterprise expand its advocacy and education
roles in support of affordable housing?
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How can we forge strategic alliances with the private sector to advance
theAffordable Housing Enterprises mission? 85 Basic Components of St. Mgt Group
Exercise 5 Strategic Issue Identification
In group try to identify strategic issues that you think can affect the overall
operation of your organization. 86 Basic Components of St. Mgt Benefits of strategic
issues identification
Enables focusing attention on important issue,
Attention is focused on issues not answers (there are several instances where
serious conflicts arise over solutions to problems that have not been clearly defined)
Provides useful clues about how to resolve them,
Enables to see the consequences of not meeting them. 87 Basic Components of
St. Mgt Reflection
What do you think is the difference between Strategic goals and objectives? 88
Basic Components of St. Mgt Strategic Goals and Objectives What are Strategic
Goals?
Strategic goals are statements of what you wish to achieve over the period of the
strategic plan (e.g. over the next year, five years, ten years.) 89 Basic Components
of St. Mgt Strategic Goals and Objectives They reflect the analysis you do that
starts with creating a vision, a role statement and a mission statement, and then
your analysis of your environment, strengths, weaknesses, opportunities and
threats. 90 Basic Components of St. Mgt What are Objectives and Are They Different
from Strategic Goals
Objectives are usually specific statements (they are actually a particular kind of
goal) that contribute to the achievement of "bigger" goals. In other words they are
actually goals, but they are more specific. 91 Basic Components of St. Mgt What are
Objectives and Are They Different from Strategic Goals? (Contd)
Another term for objectives within a strategic planning framework is to call these
"enabling goals", since, if you hit all your objectives, they will contribute to the
achievement of the larger strategic goal(s), they enable. 92 Basic Components of
St. Mgt What Should Strategic Goals Reflect In Terms Of Strategic Planning?
Your strategic goals, as part of the strategic planning process MUST reflect the
analyses you use in the strategic planning process (otherwise all that work is
wasted). Your strategic goals should: reflect the general themes of your vision,
role and mission reflect the business realities outside of your company (as
identified in your environmental scan) 93 Basic Components of St. Mgt What Should
Strategic Goals Reflect In Terms Of Strategic Planning? (Contd)
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