a)Environmental
scanning: Environmental scanning is the monitoring, evaluating, and
disseminating of information from the external and internal environments to key
people within the organization. Its purpose is to identify strategic
factors(external and internal elements) that will determine the future of the
corporation. The simplest way to conduct environmental scanning is through SWOT
analysis
b)Strategy formulation: Strategy
formulation is the development of long-range plans for the effective management
of environmental opportunities and threats, in light of corporate strengths and
weaknesses(SWOT). It includes corporate missions, objectives, strategies,
policy.
Missions-An
organization’s mission is the purpose or reason for the organization’s
existence.
Ex-Increasing
the revenue of X company up to $300 million by the year 2015
Objectives-Objectives
are the end results of planned activity. Ex Profitability (net profits)
Efficiency
(low costs, etc.) Growth (increase in total assets, sales, etc.)
Strategies-
A strategy is a plan of action designed to achieve a specific goal or series of
goals within an organizational framework. It includes corporate strategies,
functional strategies, business strategies.
Policies-
A policy is a broad guideline for decision making that links the formulation
of a strategy with its implementation.
c)Strategy implementation:
Strategy implementation is a process by which strategies and policies are put
into action through the development of programs, budgets, and procedures.
Programs-
A plan of action aimed for completing business objective with details on, what
work is to be done, by whom, when, and what means or resources will be used.
Budgets-
A budget is a statement of a corporation’s programs in terms of money.
Procedures-
Procedures/Standard Operating Procedures (SOP), are a system of se-quential
steps or techniques that describe in detail how a particular task or job is to
be done.
d)Evaluation and control:
Evaluation and control is a process in which corporate activities and
performance results are monitored so that actual performance can be compared
with desired performance.
