The Five tasks of the Strategic

Management Process
The strategic management process is
comprised of five tasks which are:
1. Developing a strategic vision and mission.
2. Setting objectives
3. Crafting a strategy to achieve the
objectives and vision.
4. Implementing and executing the strategy.
5. Evaluating performance and making
corrective adjustments.

2. The Strategy Making

Tasks
DEVELOPING A STRATEGIC VISION &
MISSION

A strategic vision describes the

direction that a company intends to
take in developing and strengthening
its business.

Vision Ctd
In other words, a vision is the desired
future state of the organisation.
It is an aspiration around which a
strategist might seek to focus the
attention and energies of members
of the organisation (It expresses the
aspirations of the executive
leadership).

Examples of Vision
Statements
Federal Express: Our vision is to
change the way we all connect with
each other in the New Network
Economy
Microsoft: A computer on every
desk, and in every home, running on
Microsoft software.
A good vision is one that is
distinctive and specific to a particular
organisation.

A Good Vision Statement

It avoids generic, feel good
statements like We will become a
global leader and the first choice of
customers in every market we
choose to serve.
The above statement can apply to
any organisation, and offers little
guidance about a companys
direction that it intends to take.
Thus a good vision must:

Good vision ctd

1. Illuminate the companys
directional path and
2. Provide managers with a reference
point for making strategic decisions
and preparing the company for the
future (Thompson &Strickland 2010).

Characteristics of an Effectively
Worded Vision Statement

1. It is graphic
2. It is Directional
3. It is focused
4. It is Flexible
5 . It is feasible
6. It is desirable
7. It is easy to communicate

Characteristics of an ineffective
Vision Statement

1. It is vague or incomplete
2. It is not forward looking
3. It is too broad
4. It is bland or uninspiring
5. It is not distinctive
6. It is reliant on superlatives like
most successful, global or worldwide
leader, first choice of customers.

A Mission Statement
A mission is a general expression of
the overall purpose of the
organisation, which is in line with the
values and expectations of major
stakeholders and concerned with the
scope and boundaries of the
organisation.
It is simply explained by the
statement What business are we
in?.

A vision vs a Mission
A vision portrays a companys future
business scope (where we are going),
whereas a companys mission
describes its present business and
purpose (who we are, what we do,
and why we are here?)
An example of a Mission Statement
for CUT

Company Values
A companys vision and mission should be
linked to its statement of values.
A companys values are the beliefs, traits,
and behavioral norms that company
personnel are expected to display in
conducting the companys business and
pursuing the strategic vision and strategy
e.g. fairness, integrity, innovation,
teamwork, transparency, superior
customer service etc.

Communicating the Strategic Vision

and Mission
The strategic vision and mission must be
effectively communicated in the entire
organization so as to enlist the commitment
of company personnel to actions that moves
the company in the intended direction.
According to Thompson & Strickland,
strategic visions become real when the
vision statement is imprinted in the minds of
organization members and then translated
into hard objectives and strategies.

SETTING OBJECTIVES
The purpose of setting objectives is
to translate the strategic vision and
mission into specific performance
targets (results and outcomes)
Well stated objectives should be
SMART.
There are two different types of
objectives that can be set i.e
Financial objectives and Strategic
objectives

Setting Objectives
The companys financial and
strategic objectives can include both
short term and long term
performance targets.
Quarterly and annual objectives are
examples of short term objectives.
Long term objectives are targets to
be achieved in two or more years

Financial Objectives
These relate to the financial performance
targets that the organisation sets to
achieve.
Examples of these can be to achieve:
1. A certain percent increase in annual
revenues
2. A certain percent of annual increase in
after tax profits.
3. A certain percent increase in earnings per
share, profit margins, ROCE, etc

Strategic Objectives
These are targets in terms of outcomes that
indicate that a company is strengthening its
marketing standing, competitive strength
and future prospects.
Examples of strategic objectives:
1. Winning a certain percentage of mkt
share.
2. Achieving lower overall costs than rivals.
3. Being a mkt leader in terms of getting
new or improved products to the mkt.etc

Crafting a Strategy
The Third Task of Strategic Management
Strategy involves determining whether to
Concentrate on a single business or several
business (Diversification)
Cater to broad range of customers or focus on
particular niche.
Develop a wide or narrow product line
Pursue a competitive advantage based on
Low cost or
Product superiority or
Unique organisational capabilities

Crafting a Strategy ctd

The above options will be taken in a quest to
answer the following questions(or hows):
How to grow the business
How to please customer
How to out complete rivals
How to respond to changing market conditions
How to manage each functional piece of the
business and develop needed organizational
capabilities.
How to achieve strategic and financial objectives

Crafting Strategy as an
entrepreneurial activity
Strategy- making is a market driven
and customer driven activity that
involves
Risk-taking and venturesomeness
Innovation and business creativity
Keen eye for spotting market
opportunities
Keen observation of customer needs
Choosing among alternatives

Characteristics of Entrepreneurial
Managers
Boldly pursue new strategic
opportunities.
Emphasize out-innovating the
competition
Lead the way to improve firm
performance
Willing to be first-mover and take
risks
Respond quickly and
opportunistically to new

Why Do Strategies Evolve

There is always an ongoing need to react
to
Shifting market conditions
Fresh moves of competition
New technologies
Evolving customer preferences
Political and regulatory changes
New windows of opportunities
Then crisis of the moment

Conclusion on the First 3 Tasks of

Strategic Management
A Strategic Vision and Mission +
Objectives + Strategy = A Strategic Plan.
These are the basic direction setting
tasks.
They help a company to :
1) Cope with industry and competitive
conditions.
2) Combat the expected actions of the
industry s key players and

Ctd
3) Confront the challenges and issues
that stand as obstacles to the
companys success.
Thus a companys strategic plan lays
out its future direction, performance
targets and strategy.

Implementing Strategy
This is the fourth task of strategic
management.
It involves converting strategic plans
into actions and results.
It is an operations-oriented, makethings-happen activity aimed at
performing core business activities in
a strategy-supportive manner.

Strategy Implementation
Management has to assess what the
company will have to do differently or
better to achieve the targeted financial
and strategic objectives.
Thus strategy implementation is an
internal operation driven activity involving
organizing, budgeting, motivating, culture
building, supervising and leading to make
the strategy work as intended!

What does strategy implementation

include?
Building a capable organization
Allocating resources to strategy
critical activities
Establishing strategy- supportive
policies and procedures
Motivating people to pursue objectives
Tying rewards to achievements of
results

Implementation Process Ctd

Installing needed information,
communication and operating systems
Instituting best practices for
continuous improvement
Creating a company culture and work
climate conducive to successful
strategy execution.
Exerting strategic leadership

Evaluating Performance
The Fifth Task of Strategic
Management.
It involves monitoring external
developments, evaluating the
companys progress and making
corrective adjustments.
It is the strategic point for deciding
whether to continue or change the
companys vision, objctives, strategy
and/or strategy execution methods.

Evaluation ctd
The tasks of strategy are not a onetime only exercise
Times and conditions change
Events unfold
Better ways to do things emerge
New managers with different ideas
take over

Who Performs the Five Strategic

Management Tasks

Senior corporate level executives

Subsidiary unit managers
Functional area managers
Operating managers

Approaches to Performing
the Strategy-Making Task

Chief Architect
Manager personally functions as chief strategist
Delegate-It-to-Down-the-Line Managers
Manager delegates some strategy-making
responsibility to subordinates in charge of key
organizational units
Collaborative/Team
Manager enlists assistance and advice of key
subordinates in hammering out a consensus
strategy
Corporate Intrapreneur
Manager encourages subordinates to develop
and champion proposals for new ventures

Strategizing: an Individual or Group

Responsibility
Teams are increasingly used because
Strategic issues cut across
departmental lines
Ideas of people with different
backgrounds can be tapped into
More people will have an ownership
stake in strategy

Strategic Role of a Board of

Directors
Continuously audit validity of a
companys long-term direction and
strategy
Evaluate strategic leadership skills of
the CEO and candidates to succeed
the CEO
A board of directors role in the
strategic management process is to
critically appraise and ultimately
approve strategic action plans but

Benefits of Strategic Thinking and a Strategic Approach to

Managing

Guides entire firm regarding what it is we are trying to

do and to achieve
Makes managers more alert to
winds of change, new opportunities,
and threatening developments
Unifies numerous strategy-related
decisions and organizational efforts
Creates a proactive atmosphere
Promotes development of an evolving business model
focused on bottom-line success
Provides basis for evaluating competing
budget requests

HELPS A COMPANY PREPARE FOR THE FUTURE!