CHAPTER ONE AN OVERVIEW OF STRATEGIC MANAGEMENT

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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 We observed that there are different definitions of strategy

These definitions interpret strategy as future plan that guides the scope &
direction of the organization It takes into account the environment in which the
entity operates Definitions of Strategic Management Strategic Mgt is the process by
which top mgt determines the long run direction and performance of the
organization by ensuring that careful formulation , effective implementation, and
continuous evaluation of strategy takes place. Strategic Mgt represents the
management responsibility for defining the organizations mission, formulating
strategies, and guiding long-term organizational activities consistent with internal &
external conditions. Definition Contd
St. Mgt. is the decision that aligns the organizations internal capability with the
opportunities and threats it faces in its environment.
St. Mgt. is concerned with deciding on strategy & planning how that strategy is to
be put into effect via: strategic analysis, strategic choice, & strategic
implementation. According to Pearce II & Robinson St. Mgt. is defined as the set of
decisions & actions that result the formulation & implementation of strategic plans
designed to achieve organizations objectives. Pearce II & Robinson Contd It
comprises nine critical tasks:
1. Formulate the organizations mission, including broad statements about its
purposes, philosophy, & goals;
2. Develop an organizational profile that reflects its internal conditions and
capabilities;
3. Assess the organizations external environment, including both the competitive &
general contextual factors; Pearce II & Robinson Contd
4. Analyze the organizations options by matching its resources with the external
environment;
5. Identify the most desirable options by evaluating each option in light of the
organizations mission;
6. Select a set of long-term objectives & grand strategies that will achieve the most
desirable options;
7. Develop annual objectives & short-term strategies that are compatible with the
selected set of long-term objectives & grand strategies; Pearce II & Robinson Contd

8. Implement the strategic choices by means of budgeted resource allocations in

which the matching of tasks, people, structures, technologies, & reward systems is
emphasized;
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9. Evaluate the success of the strategic process as an input decision making

. Summary: The various definitions show that the St. Mgt. is something that can be
applicable to all organizations whether large or small, public or private, profit or
non-profit making ones, It involves the planning, organizing, directing &
controlling of organizations strategy-related decisions & actions, It looks beyond
day-to-day operating concerns so as to focus upon the entire organizations longterm prospects and development, It forces an organization to define its philosophy
(vision), mission, role & goals. Note: The responsibility of doing the above rests on
different individuals depending upon the size & type of the organization Often it is
the responsibility of an organizations governing board or top management
Reflection
What are levels of strategy?
How do you distinguish/ characterize different levels of strategy? Levels of
Strategy Corporate Strategy Business 1 Business 2 Business 3 R & D Finance & Acct
Marketing Production Source: Pearce II & Robinson, 1991: 6 Corporate strategy
It is also called portfolio-level strategy & primarily concerned with top
management, chief executive or board level decisions for acquisitions, mergers,
major expansions, & divestitures that add or reduce product line. Corporate strategy
contd
It identifies the businesses that the organizationis taking and should take, and
attempts to determine the roles each business activity is playing and should play in
the organization.
At this level; only the global objectives that are likely to be growth, stability or
retrenchment (defense); & strategic orientation in order to achieve them are clearly
defined. Business strategy
It is found in the middle of the decision making hierarchy and composed mainly
of business & corporate managers
. It is concerned with a single strategic business unit (SUB) and how each
business attempts to achieve its mission within its chosen area of activity. Business
strategy contd
Managers at this level translate the statements of direction and intent generated
at the corporate level into concrete objectives & strategies for individual SUBs.
The strategy is directed towards identifying products that should be developed
and offered to selected markets; and taking care of meeting the customers needs
while achieving the objectives of the organization. Functional strategy
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 It is found at the bottom of the decision making hierarchy composed of mainly of

managers of product, geographic and functional areas
. This strategy is implemented in order to support the business strategy by each
functional area.
Functional level decisions are concerned with how to implement new
technologies, develop new products, open new markets, expand new facilities, and
institute new human resource programs.
The principal responsibility of functional-level managers is to implement the
organizations strategic plans

CHARACTERISTICS OF STRATEGIC DECISIONS CORPORATE-LEVEL DECISION:

As we move from corporate to functional level strategies, the decisions become
more detailed & specific
The decisions at corporate level tend to be more value oriented, conceptual, &
less concrete
Corporate level decisions are characterized by greater risk, cost of risk, profit
potential, greater need of flexibility & longer time horizons
Such decisions include the choice of businesses, dividend policies, sources of
long-term financing, & priorities of growth CHARACTERISTICS Contd
BUSINESS-LEVEL DECISION:
Helps to bridge decisions at corporate & functional levels
Common business level decisions include plant location, market segmentation,
geographic coverage, & distribution channels
CHARACTERISTICS Contd FUNCTIONAL-LEVEL DECISION:
Implement the overall strategy formulated at thcorporate & business levels
Involves action-oriented operational issues, relatively short range & low risk
Incurs modest costs because it depends on available resources
Critically analyzed because it is relatively concrete & quantifiable The Nature &
Value of St. Mgt
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 Before WW II, the executive's responsibility was solely lilimited to management

of activities internal to the organization
They would not respond to the challenges posed by the organizations immediate
& remote external environment
They didnt use their ability to think, plan, & manage strategically while
managing organizations (Pearce II & Robinson, 1991) The reasons were:
lack of assessing the consequences of long-term trends
Absence of clear goals
Poor or non-existent strategic planning process
Limited linkages b/n plans & actions
Absence of evaluation & feedback mechanisms The Nature & Value of St. Mgt
However, any organization be it public or private, profit or non-profit making is
required to make contributions to society
If it fails to serve the society as expected, it may disintegrate or fall into crisis.
Examples: a textile factory, a university, ...
If the textile factory fails to provide customers with quality products with
competent price,customers buy them somewhere else.
If a university no longer offers sound academic programs, students will transfer
to other universities or colleges. The Nature & Value of St. Mgt
In general, when an organization is not in a position to provide beneficial services
or products to its stakeholders, society perceives little need for its existence.
This can be overcome by St. Mgt. as it is primarily concerned how organizations
intentionally and systematically make decisions about products, services,
customers, and human resources vital both to themselves and to society at large
(Holt, 1993).
Knowing this fact, since WW II, executives have been using St. Mgt. for the
planning & implementation of programs & policies. The Nature & Value of St. Mgt
Particularly, important improvement in management process came in 1970s,
when long-range planning, new venture mgt., planning, programming, & business
policy were blended (Pearce II & Robinson, 1991: 2)

 In general, modern managers must respond to the challenges posed by the

organizations immediate & external environment
Immediate & external environment of organizations, which must be anticipated,
monitored, assessed, & incorporated into the executives decision making such as:
The Nature & Value of St. Mgt
Competitors
Suppliers
Increasingly scarce resources
Government agencies & their ever more regulations
Customers whose preferences often shift inexplicably
Economic & social conditions
Political priorities
Technology Reflection
What are the benefits as well as challenges of Strategic Management?
Advantages & Challenges of St. Mgt Advantages:
Prevent or mitigate the effects of risks
Helps the managers to discharge their responsibilities since they know what is
expected of them
Encourages & permits to evaluate alternative courses of action
It reveals & clarifies the SWOT analysis Advantages Contd
It provides an overall framework for decision making & resource allocation
effectively
Serves as a means of communicating objectives, strategies, & detailed operating
plans
It helps managers' master change
It develops attitudes, perspectives, ways of thinking, decision-making habits, &
planning philosophy that will produce better decisions Advantages Contd

 It provides a basis for measuring qualitative performance creativity, innovation,

imagination, motivation
It keeps the org. invariably tied with its customers & stakeholders and provide
relevant service to the society it stands for
It makes the organization a learning-organization whereby others consider it as a
model to be followed Constraints/ Challenges
The difficulties of forecasting the uncertain future accurately
The complexity of the environment to be forecasted and the complex relations
involved between environmental variables
The limitations of the data available & the distrust of mgt. techniques applied
such as forecasting, modeling, cost analysis & operational research Constraints
Contd
The costly endeavor of the St. mgt process that entails the use of specialists,
taking up mgt. time, requiring the support of many individuals and even other orgs.
The rapidity and novelty of environmental change (the main leading forces of
change are globalization, resource scarcity, & technological revolution).
Hence, the survival & success of organizations can be guaranteed with new
creativity & innovation
Generally, St. mgt. helps to systematically analyze pivotal long-term trends &
issues and to analyze the institutions capacity to respond to those trends.
When carried out imaginatively & conducted in the right atmosphere of
communication, participation, & cooperation; on a logical, deliberate, & analytical
basis, it helps to achieve organizational success.
It works best when adequate time, energy, and resources are directed into it The
framework for St. Mgt. Involves a nine-step process:
1. Creating a vision for the organization
2. Outlining the missions & legal mandates that define the organization
3. Examining internal factors that influence its performance
4. Examining external factors that influence its performance CONTD
5. Examining the trends & potential futures of the organization
6. Setting goals for improving organizational performance over a specified period
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7. Designing a strategic plan for reaching the goals set

8. Implementing or operationalizing the strategic plan
9. Evaluating both ongoing activities & the final outcomes
Analysis of Strategic Management Process
Vision
Mission/Mandate
Internal Analysis
Eternal Analysis
Trend Analysis
Goal Setting based on Vision
Strategic Planning
Implementation / Operational Mgt
Evaluation CHAPTER TWO BASIC COMPONENTS OF THE STRATEGIC
MANAGEMENT Basic Components of St. Mgt 46 Contents
Creating a Vision
Outlining the Mission
Values, and strategic issues
Setting Goals and Objectives
Strategic plan 47 Basic Components of St. Mgt Learning objectives
Define vision, mission, goals, and objectives;
Able to develop vision and mission statements;
Discuss the nature and importance of vision and mission;
Describe values and strategic issues
Able to set goals and objectives 48 Basic Components of St. Mgt Reflection
What do you understand by the term vision?

 What do you understand by the term mission?

How are they different? 49 Basic Components of St. Mgt Creating a Vision
The strategic mgt effort begins with creation of organizational vision (mental
journey).
Managers should envision where the org. should be headed in the long run &
understand how it might get there.
In general, the corporate vision can be defined considering internal & external
changes 50 Basic Components of St. Mgt Group Exercise 1 Envision an article
written in the future about you or your organization. Imagine yourself receiving an
award for a major accomplishment. What is the award? What has been
accomplished? 51 Basic Components of St. Mgt Vision contd
In defining a vision, the management must pose a question What business are
we in?
In this respect, the firms size, scope, the products /services it provides & the
markets it serves should be considered
This is simply for the purpose of identifying the gap between what is and what
will be the firm.
Usually, in defining a vision, what the company wants to be & the timeframe to
achieve it are stated. 52 Basic Components of St. Mgt Example of Vision Statement
Addis Ababa City Government 2025 Vision In 2025, Addis Ababa will be world class
city, a green, clean and livable city; with vibrant economy and residents all living
above poverty line, hub of conference tourism and national bench-mark of good
governance. 53 Basic Components of St. Mgt Example contd

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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 To achieve market leadership by 2010 as a world class African Airline 55 Basic

Components of St. Mgt Group Exercise 2
Drafting a Vision Statement
Imagine five years in to the future:
What kind of organization do you want to become?
What will your organization look like in five years? 56 Basic Components of St.
Mgt Effective leadership and vision
Effective leadership and vision are closely related:
Thus, leaders must be forward looking & clarify the direction in which the org. to
move.
Managers who do not develop into strong leaders do not develop a clear visioninstead, they focus on routine tasks. 57 Basic Components of St. Mgt Effective
leadership and vision contd In general, visionary leaders:
Have thoughts that others do not have
Are extraordinary-no focus on routine activities
Are forward looking and clarify the direction in which they want their organization
move
Are exemplary in order to employees embrace the vision
Ensure the success of the vision based ostrengths
Develop further the corporate vision considering internal & external changes etc.
58 Basic Components of St. Mgt Vision contd Though vision is important it can
fail:
If it reflects merely the leaders internal needs
If internal & external factors are not analyzed well
Due to lack of acceptance by the market & by those who implement it
Ignores stakeholders needs
Miscalculates the resources needed and available to achieve it 59 Basic
Components of St. Mgt Vision contd Vision has two-fold purpose:

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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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 Ensures unanimity of purpose

Provides a basis for motivation
Allocates organizations resources
Establishes the necessary organizational climate
Serves as a basis for those who can identify with the organization
Facilitates the translation of objectives & goals 66 Basic Components of St. Mgt
Mission contd
As the organization grows or is forced by competitive pressures to alter its
product/market/technology, redefining the org mission may be necessary. The
revised mission should also state:
The basic type of product or service to be offered,
The primary markets or customers to be served, and the technology to be used
The firms fundamental survival, growth, and profitability
The firms managerial philosophy
The public image the firm seeks 67 Basic Components of St. Mgt Group Exercise 3
Drafting a Mission Statement Consider the following questions and draft a
mission statement of your organization.
Why do we exist?
Who do we serve?
What services do we provide?
How do we go about providing them? 68 Basic Components of St. Mgt Revising a
mission If you already have a mission statement in your organization you can review
it by asking the following questions.
Is it relevant as when the statement was written?
Are there items that ought to be added?
Does the statement address the points suggested for inclusion in a mission
statement?

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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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exceptional customer service, etc. 76 Basic Components of St. Mgt Values

(Contd)
Examples of values include: a commitment to excellent services, innovation,
diversity, creativity, honesty, integrity, and so on.
By developing a written statement of the values of the organization, group
members have a chance to contribute to the articulation of these values, as well as
to evaluate how well their personal values and motivation match those of the
organization. 77 Basic Components of St. Mgt Examples of Values
We obey the law and do not compromise moral or ethical principles ever!
We are committed to forging public and private partnerships that combine
diverse strengths, skills and resources.
We treat everyone with respect and appreciate individual differences. 78 Basic
Components of St. Mgt Group Exercise 4 Organizational Values/guiding principles
Think of about the vision and mission statement you have developed before and
work on the following question.
What are the values implicit in your vision and mission statement that should
guide your work if you are to make a contribution to your vision and mission? 79
Basic Components of St. Mgt Identifying critical /Strategic Issues
Identifying strategic issues is the heart of the strategic planning process
. A strategic issue is: A Fundamental policy questions/critical challenges that
affect: mission, values, level or mix of services, clients, donors, cost, financing,
structure or management.
Strategic issues are issues which if not addressed will severely handicap the
organizations/regional governments ability to function effectively. 80 Basic
Components of St. Mgt Identifying critical /Strategic Issues (Contd...)
Strategic issues are fundamental policy or program concerns that define the most
important situations and choices your organization/regional government faces now
and in the future. 81 Basic Components of St. Mgt Identifying critical /Strategic
Issues (Contd...)
Critical issues can reflect long-standing problems in the region, the community
served or recent events that are anticipated to have a significant impact on the
region and/or community served.

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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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 Reflect the business and capabilities internal to your organization/regional

government (also as identified in your environmental/internal scan)
Reflect your strengths, weaknesses, and opportunities and strengths you've
identified in your SWOT analysis. 94 Basic Components of St. Mgt What Should
Strategic Goals Reflect In Terms Of Strategic Planning? (Contd)
Remember that you want your entire organization to be aligned, or aimed at the
achievement of your strategic goals, and for this to happen your strategic goals
need to be aligned with (or consistent with and supporting of) all the other parts of
your strategic plan. 95 Basic Components of St. Mgt Group Exercise 6 Drafting your
Goals
What do you want to accomplish in the next 5 years, given the available
resources, vision, mission values and strategic issues of your organization? 96 Basic
Components of St. Mgt Objective Setting Quantification (if possible) of more
precise statement of the goal.
Indicate how the mission can be achieved
Represent specific planned levels of achievement
Provide precise points or states to be achieved 97 Basic Components of St. Mgt
Objective Setting (Contd)
Allow review and appraisal of achievement
Make clear:
What is to be accomplished
How much is to be accomplished
By when it is to be accomplished
By whom it is to be accomplished 98 Basic Components of St. Mgt Objective
Setting (Contd) In short an objective should be Specific, Measurable, Achievable,
Relevant and Time bound (SMART)
Specificity indicates clearly what needs to be achieved. Example: reduce delay.
Measurability indicates the possibility to determine if the desired condition is
fulfilled. Example: Reduce delays by 40% by the end of 2010.
Achievability indicates a consensus and commitment to the objectives among the
major stakeholders 99 Basic Components of St. Mgt Objective Setting (Contd)
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 Relevance indicates objectives need to be achievable. It answers feasibility, the

availability of authority of the managers and the means of realization.
Time bound indicates a clear understanding of the time scales associated with
each objective as defined. It is difficult to have commitment without time frame.
100 Basic Components of St. Mgt Group Exercise 7 Drafting your Objectives
STRATEGIC PLAN
The strategic plan refers to the arrangement and ordering of the activities and
tasks that will be necessary to carry out the goals
. Thus, this step focuses on defining and acquiring the necessary resources as
well as establishing the timetable for the completion of the tasks. 105 Basic
Components of St. Mgt STRATEGIC PLAN contd The development of a strategic
plan involves in answering the following five questions:
1. What are the practical alternatives that might be pursued to achieve the goal?
2. What are the barriers to the realization of these alternatives?
3. What major proposals might be pursued to achieve these alternatives or to
overcome the barriers to their realization?
4. What major actions with existing staff must be taken within the next year to
implement the major proposals?
5. What specific steps must be taken within the next six months to implement the
major proposals and who is responsible? 106 Basic Components of St. Mgt
STRATEGIC PLAN contd Rucheman (1985) points out that the realization of the
plan can be affected by the following six factors:
Scope where are the clients?
Size who are the potential clients?
Complexity how are specific are the objectives?
Duration how long it will take to implement the objectives?
Components how many discrete activities?
Innovativeness how much of a break from the past?

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