Prepared by: Alaa Maher Group (6)

The

set of decisions and actions that result

in the formulation and implementation of plans designed to achieve a companys objectives.

1. 2.

Formulate the companys mission. Conduct an analysis that reflects the companys internal conditions and capabilities. Assess the companys external environment.

3.

4. 5. 6.

Analyze the companys options. Identify the most desirable options. Select a set of long term objectives and guard strategies.

7.

Develop annual objectives and short term strategies.

8. 9.

Implement the strategic choices. Evaluate the success of the strategic process.

Strategic issues:
Require Require

top management decisions. large amounts of the firms

resources.
Often

affect the firms long-term prosperity.

Strategic issues:
Are

future oriented. multifunctional or multibusiness

Have

consequences.
Require

considering the firms external

environment.

 Top

of the decision making hierarchy:

Corporate level.
Middle

of the decision making hierarchy

Business level.
Bottom

of the decision making hierarchy

Functional level.

 Composed

of a board of directors and the

chief executive and administrative officers.

The

attitudes at the corporate level reflect

the concerns of stock holders and society at large.

 Composed

of business and corporate

managers.
They

translate the statements of the

direction and intent generated in the corporate level into concrete objectives and strategies.

 Composed

of managers of product,

geographic, and functional areas.

Their

responsibility is to implement or

execute the firms strategic plans.

They

address issues such as efficiency

and effectiveness.

 Corporate

and business level managers

center their attention on doing right things.

Managers

at the functional level center

their attention on doing things right.

Formality:
The

degree to which participation,

responsibility, authority, and discretion in decision making are specified in strategic management.

Entrepreneurial mode:
Associated

with firms under control of a

single individual (small firms).

Strategic

evaluation is informal, intuitive,

and limited.

Planning mode:
Associated Strategic

with large firms.

evaluation is comprehensive,

formal planning system.

Adaptive mode:
The

strategic formality associated to

medium-sized firms that emphasis the incremental modification of existing competitive approaches.

1.

Enhance the firms ability to prevent problems.

2.

Group-based strategic decisions results in better decisions.

3.

Involvement of employees heightens their motivation.

4.

Gaps and overlaps among individuals and groups are reduced.

5.

Resistance to change is reduced.

 Company Internal

mission.

analysis. environment. analysis and choice. objectives.

External

Strategic

Long-term

 Generic

and Grand strategies. objectives.

Short-term Action

plans. tactics.

Functional Policies

that empower action.

 Restructuring,

Reengineering, Refocusing

the organization.
Strategic

control and continuous

improving.

Process:
The

flow of information through interrelated

stages of analysis towards the achievement of an aim.

 In

strategic management process the flow of

information involves forecast data on the operations and environment of the business.
Managers

evaluate these data in the light of

the values and priorities of influential individuals and groups (stakeholders)

change in any component will affect several

or all other components.

Strategy

formulation and implementation are

sequential.
The The

necessity of feedback. need to regard it as a dynamic system.