Model of Strategic Management Process:

SWOT Analysis
1. Environmental Scanning
Environmental scanning refers to a process of
collecting, scrutinizing and providing
information for strategic purposes. It helps in
analyzing the internal and external factors
influencing an organization. After executing
the environmental analysis process,
management should evaluate it on a
continuous basis and strive to improve it
Environmental analysis
Analysis of general environment
Industry and competition analysis
Preparation of environmental threat and opportunity profile
Organisational Analysis
Analysis of strengths and weaknesses in different areas
Preparing organisational capability profile
SWOT analysis
Defining core competence and distinctive competence
Developing competitive advantage through
Generic competitive strategies
Strategic intent
Benchmarking
Synergistic approach
Critical success factors approach
Preparing competitive advantage profile

2. Strategy Formulation
Strategy formulation is the process of deciding
best course of action for accomplishing organi
zational objectives and hence achieving
organizational purpose. After conducting
environment scanning, managers formulate
corporate, business and functional strategies
Strategy Formulation
Formulation of organisational mission and
objectives
Formulating mission and mission statement
Business definition in terms of customer,
product, and technology
Formulating long term broad objectives
3. Strategy Implementation
To make strategy work as intended or putting
the organizations chosen strategy into action.
Strategy implementation includes designing
the organizations structure, distributing
resources, developing decision making
process, and managing human resources
1. Activating strategy
Institutionalisation of strategy
Resource mobilisation and allocation
Translating general objectives into specific objectives
2. Procedural implementation
3. Structural implementation
Designing organisation structure
Prescribing organisational systems
4. Functional Implementation
Prescribing policies and strategies in
Production/ operations
Marketing
Finance
Human resources

5. Behavioural implementation
Leadership implementation
Managing organisational culture
Creating values and ethics
Corporate governance
Managing organisational politics
6. Organisational change and innovation
Initiating and implementing organisational
change
Managing organisational innovation
4. Strategy Evaluation
Strategy evaluation is the final step of strategy
management process. The key strategy
evaluation activities are: appraising internal
and external factors that are the root of
present strategies,
measuring performance, and taking remedial /
corrective actions. Evaluation makes sure that
the organizational strategy as well as its
implementation meets the organizational
objectives
1. Designing evaluation and control system
Setting criteria for evaluation and control
Setting standard in respect of these criteria
2. Exercising control
Strategic control
Financial performance control
Social performance control
Strategic Management Process
Strategy
Formulation
Strategy
Implementation

Mission
Objectives
Strategies
Policies
Feedback/Learning
Environmental

Scanning
Societal
Environment
General Forces
Task
Environment
Industry Analysis
Structure
Chain of Command
Resources
Assets, Skills
Competencies,
Knowledge
Culture
Beliefs, Expectations,
Values
Reason for
existence
What results
to
accomplish
by when
Plan to
achieve the
mission &
objectives
Broad
guidelines for
decision
making
Programs
Activities
needed to
accomplish
a plan
Budgets
Cost of the
programs
Procedures
Sequence
of steps
needed to
do the job
Process
to monitor
performance
and take
corrective
action
Performance
External
Internal
Evaluation
& Control