Types of Planning-

Types of  Planning-

Strategic plans define the framework of the organization’s vision and how the organization intends to make its vision a reality.

• It is the determination of the long-term objectives of an enterprise, the action plan to be adopted and the resources to be mobilized to achieve these goals.

• Since it is planning the direction of the company’s progress, it is done by the top management of an organization.

• It essentially focuses on planning for the coming years to take the organization from where it stands today to where it intends to be.

• The strategic plan must be forward-looking, effective, and flexible, with a focus on accommodating future growth.

• These plans provide the framework and direction for lower-level planning.

Tactical Plans

Tactical plans describe the tactics that the managers plan to adopt to achieve the objectives set in the strategic plan.

• Tactical plans span a short time frame (usually less than 3 years) and are usually developed by middle-level managers.

• It details specific means or action plans to implement the strategic plan by units within each division.

• Tactical plans entail detailing resource and work allocation among the subunits within each division.

Operational Plans

Operational plans are short-term (less than a year) plans developed to create specific action steps that support the strategic and tactical plans.

• They are usually developed by the manager to fulfill his or her job responsibilities.

• They are developed by supervisors, team leaders, and facilitators to support tactical plans.

• They govern the day-to-day operations of an organization.

• Operational plans can be −

  • Standing plans − Drawn to cover issues that managers face repeatedly, e.g. policies, procedures, rules.

  • Ongoing plans − Prepared for single or exceptional situations or problems and are normally discarded or replaced after one use, e.g. programs, projects, and budgets.

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Planning Process

 

Meaning of Planning

Planning is ascertaining prior to what to do and how to do it. It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence, planning is firmly correlated with discovery and creativity. But the manager would first have to set goals. Planning is an essential step what managers at all levels take. It needs holding on to the decisions since it includes selecting a choice from alternative ways of performance.

Planning Process

As planning is activity there are certain reasonable measures for every manager to follow:

(1) Setting Objectives

• This is the primary step in the process of planning which specifies the objective of the organisation i.e. what an organisation wants to achieve.
• The planning process begins with the setting of objectives.
• Objectives are end results which the management wants to achieve by its operations.
• Objectives are specific and are measurable in terms of units.
• Objectives are set for the organisation as a whole for all departments and then departments set their own objectives within the framework of organisational objectives.

Example:

A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the current sales.

(2) Developing Planning Premises

• Planning is essentially focused on the future and there are certain events which are expected to affect the policy formation.
• Such events are external in nature and affect the planning adversely if ignored.
• Their understanding and fair assessment are necessary for effective planning.
• Such events are the assumptions on the basis of which plans are drawn and are known as planning premises.

Example:

The mobile phone company has set the objective of 2,00,000 units sale on the basis of forecast done on the premises of favourable Government policy towards digitization of transactions.

(3) Identifying Alternative Courses of Action

• Once objectives are set, assumptions are made.
• Then the next step is to act upon them.
• There may be many ways to act and achieve objectives.
• All the alternative courses of action should be identified.

Example:

The Mobile company has many alternatives like reducing price, increasing advertising and promotion, after-sale service etc.,

(4) Evaluating Alternative Course of Action

• In this step, the positive and negative aspects of each alternative need to be evaluated in the light of objectives to be achieved.
• Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the planning premises and within the availability of capital.

Example:

The mobile phone company will evaluate all the alternatives and check its pros and cons.

(5) Selecting One Best Alternative

• The best plan which is the most profitable plan and with minimum negative effects is adopted and implemented.
• In such cases, the manager’s experience and judgement play an important role in selecting the best alternative.

Example:

Mobile phone company selects more T.V advertisements and online marketing with great after-sales service.

(6) Implementing the Plan

• This is the step where other managerial functions come into the picture.
• This step is concerned with “DOING WHAT IS REQUIRED”
• In this step, managers communicate the plan to the employees clearly to convert the plans into action.
• This step involves allocating the resources, organising for labour and purchase of machinery.

Example:

Mobile phone company hires salesman on a large scale, creates T.V advertisement, and starts online marketing activities and set up service workshops.

(7) Follow Up Action

• Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.
• Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule.
• Regular checks and comparisons of the results with set standards are done to ensure that objectives are achieved.

Example:

A proper feedback mechanism was developed by the mobile phone company throughout its branches so that the actual customer response, revenue collection, employee response, etc. could be known.

1 Mark Questions:

Q. “To See Whether Plans Are Being Implemented and Activities Are Being Performed According to Schedule,” is a Step of Planning Process. Identify the Step.

Answer:

Follow up action.

Q. Which is the Most Crucial Step in Planning Process?

Answer:

Setting objectives.

Q. What is Meant by ‘follow Up’ as Involved in the Planning Process?

Answer:

It means to ensure the actual work is taking place as per the planned work.

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Definition of Corporate Planning-

Corporate planning is creating a strategy for meeting business goals and improving your business. A corporate plan is a roadmap that lays out your business’s plan of action. It is imperative to write down goals and plan for how they will be achieved. Without planning, business operations can be haphazard, and employees are rarely on the same page. When you focus on corporate planning, you set achievable goals and bring your business one step closer to success.

Corporate Planning Definition

Corporate planning is the act of creating a long-term plan to improve your business. A corporate plan examines a business’s internal capabilities and lays out strategies for how to use those capabilities to improve the company and meet goals. Think of a corporate plan as a roadmap laying out everything you need to do to achieve your future goals and reach new levels of success. The plan looks at each sector of a business and makes sure that all parts are aligned, working towards similar goals. Corporate planning is often looked at through a SWOT analysis (strengths, weaknesses, opportunities, threats). Further, it usually starts with broad goals and works its way towards a much more detailed analysis, laying out exactly how objectives will be reached. The following elements tend to be in a corporate plan:

• Vision statement: You company’s vision statement broadly defines what goals you are working to achieve. This statement is where you hone in on your business’s focus and what you want to accomplish over the next three-to-five years. Think big, but remember that you will have to create a strategic plan to back these goals up. So always make sure that your goals can be defined as SMART goals (strategic, measurable, achievable, realistic and time-based).  
• Mission statement: A good mission statement lays out how you will achieve your vision statement in a few sentences. It should illustrate what you plan to offer or sell, the market you are in, and what makes your company unique. A mission statement is like an elevator pitch for your entire strategy. It effectively communicates who you are and what you want to do in a few lines.   
• Resources and scope: Part of corporate planning is taking stock of everything you currently have going on in your organization. You'll look at your systems, products, employees, assets, programs, divisions, accounting, finance and anything else that is critical to meeting your vision. This part is almost like making a map of your current organization. It gives you a bird’s eye view of everything your company has going on, which helps you create a plan for moving towards the future.
• Objectives: Next, you need to lay out your business objectives and how you plan to measure success. This is a good time to hone in on that SMART planning to ensure that your objectives are strategic, measurable, achievable, realistic and time-based. A vague goal such as “improve brand reputation” is meaningless without a solid measure of success in place. A SMART goal would instead be “improve brand reputation by placing the product in five positive media stories by the end of Q1.”
• Strategies: Now, it’s time to illustrate the strategies you plan to use to meet the objectives of your company. These strategies could be anything from introducing new products to reducing labor costs by 25 percent, depending on the goal. Your strategies should directly address the objectives you have laid out in your corporate plan, and include a plan of action for how you will implement them. These are the nitty-gritty plan details.

• Why You Need Corporate Planning-

  Every business needs to do corporate planning. Creating a strategic plan gives your company direction and actionable goals to see through. Without a plan, how will you know your priorities or where to place your resources? A business with a plan achieves better results than one that does not have any direction.

  The first reason you need corporate planning is because it provides clear objectives for your organization. You wouldn’t leave for a road trip without mapping out your route. Similarly, it’s not advisable to run a business without mapping out your route. Corporate planning puts on paper your focus, and allows you to move forward with purpose. If your business is operating without a plan, you will not be able to achieve your goals. Goals must be written down and broken into parts to be efficiently achieved. Further, they must have clear timelines and deliverables. Corporate planning helps you create a roadmap for success by asking you to answer three crucial questions:

  • What is the purpose of this business? (Mission)
  • Where do we want to go and what do we hope to achieve? (Vision)
  • How will we achieve our objectives? (Plan)

  Another reason you need corporate planning is because it can help align your organization and its values. A corporate plan does more than simply keep your employees on a timeline for success. It also defines who you are as a company, and what you stand for. Likewise, when employees get a say in the direction of a business and its objectives, your company culture will improve. Planning for the future brings everyone to the table, promotes the exchange of ideas and creates effective solutions to organizational problems. Making and sticking to a plan ensures that everyone in the organization is on the same page. Small business owners especially will find that strategic planning is a great way to get feedback from employees and improve overall culture.

  Finally, a corporate plan helps communicate your brand’s message to employees, shareholders, creditors, partners, investors and customers. Taking the time to hone your vision and mission statements is extremely important for messaging, which is essentially communicating what you are and what you want to be as a company. When your purpose as a company is boiled down to its bare bones and made widely available, the message sticks. Everyone immediately knows what your brand stands for and who it hopes to serve. A solid, clear corporate plan can be used to attract investors, customers and employees.

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The Role of Strategist in a Business

The Role of Strategist in a Business Organization-

Strategists are individuals or groups who are primarily involved in the formulation, implementation, and evaluation of strategy.   A strategist is like the root of an organization. In order to overcome the deadly traps in any organization, a strategist must first think outside of the “box” and they must focus on both the “forest and the trees.” They just need to concentrate on three aspects of human intelligence like Intellectual Intelligence (IQ), Emotional Intelligence (EQ), and Spiritual Intelligence (SQ).

he mind of strategists must try to decide when to do strategy and when not to do strategy, clear target markets, competitive advantage, 80/20 focus, and alignment. They need to do research, analyze the given situation with the available information’s and come out with the best solutions. The heart of a strategist must have the concepts, rules, power, and politics play an important role in the development of any strategy. The end result of a strategy (the strategic plan) determines what is, and what is not important to the company’s future, who will get scarce resources such as budgets, and skills, who will be gain and who will lose power. The soul of strategist must-have ingredients to inspiration include energy, creativity, action or doing, wisdom, purpose, fun, awareness of the mystery, caring, motivating the people, stimulating the new innovative ideas.

There are various kinds of strategists like managers, the board of directors, chief executive officers, entrepreneurs, senior management, SBU-level executives, corporate planning staff, consultants, middle-level managers, executive assistants.

• The Board of directors is the owners of an organization such as shareholders, controlling agencies, government, financial institutions, etc. They are responsible for the governance of an organization, technology collaboration, new product development and senior management appointments. They guide the senior management in setting and accomplishing objectives, review and evaluate organizational performance.
• The chief executive officer is answerable for all aspects of strategic management from the formulation to the evaluation of strategy. They play a major role in strategic decision making and provide the direction for the organization so that it can achieve its purpose. They assist in setting the mission of the organization. They are responsible for deciding the objectives, formulating and implementing the strategy.
• Entrepreneurs are strategist who starts a new business, initiator, searches for change, respond to it and exploits its as an opportunity. By their nature, entrepreneurs play a proactive role. They are implementers and evaluators of strategies.
• Senior management or top management consists of managers at highest level managerial hierarchy. They look after renovation, technology up progression, diversification and expansion and also focus on new product development. They assist the board and chief executives in formulating, implementing and evaluating the strategy.
• SBU level  executives  are profit center heads or divisional heads. They manage a diversified company as a portfolio of businesses, each business having a clearly defined product-market segment and an unique strategy. SBU executives maintain harmonization with other SBUs in the organizing, formulating and implementing the SBU level strategy.
• Corporate planning staff plays a supporting role. They put in order and communicate the strategic plans. They make available administrative support and fulfill the function of assisting the introduction, working and maintenance of strategic management system.
• Consultants  may be individuals, academicians or consultancy companies who are specialized in strategic management activities. They will advise and assist managers to improve the performance and effectiveness of an organization. They provide services of corporate strategy and planning.
• Middle level managers look after operational matters, so they rarely play an active role in strategic management. They are the implementers of decision taken by top level and followers of policy guidelines. They contribute to generation of ideas and in development of strategic alternative. They also help in setting objectives at departmental level.
• An executive assistant will assist the chief executive in the performance of his duties in various ways. They assist the chief executive in data collection, analysis and in suggesting alternatives. Coordinating activities with internal staff and outsiders and acting as a filter for information are also performed by the executive assistant.

The Role of Strategist in Organizations

A powerful strategist plays the major important roles like sooth sayer, sculptor, politician, guru and jail buster.

• A strategist must be a soothsayer or seer who helps his team to imagine the future world within which they will be competing. They begin by reading the palm of the organisation and also identify its competencies and unique strengths. They then use the crystal ball of scenarios, and imaginative thinking to help the team to visualize the future within which the business will operate.
• A strategist should also be a sculptor like an artist ‘who carves a form’ out of raw materials. The sculptor strategist creates a unique role or purpose for the organisation. They predict the reason why the organisation will be successful within the soothsayer’s imagined future. The sculptor begins by defining the organisation’s future target markets. They then provide the future shape of the organisation by defining why its future customers will choose to support it, rather than any future imagined competitor. So the strategist changes systems, structures, rewards, alliances, products and services to ensure that everything supports the organisational purpose.
• A politician is someone who is ‘skilled in the art of maneuvering and manipulation.’ The politician strategist knows the power players in the organisation. They know what drives each leader and they also know who is motivated by what external and internal factors.
• A guru is ‘a person who gives personal spiritual guidance to his disciples.’ The strategist guru, shows how each individual employee in the company, can contribute to the greater, noble goal. They help individual employees to discover their inimitable personal purpose. Then they show them how to channel their energy and talent towards living their purpose, whilst acting in ways that support the company’s goal.
• A strategist must also plays a role of jail buster, while at work, many employees find that their talents, passions, creativity, imagination, and energy are locked behind bars of the company culture. Timid managers who want to ‘be in control’, and ‘avoid making mistakes’, often hide the keys to creativity, energy, passion, self-assurance, and innovation. The jail buster strategist shows employees how to break out from their prison of tediousness and fear without alerting their fearful managers. They provide the key to unlocking their talents, creativity, and energy.

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The Three Levels of Strategy-

Strategy can be formulated at three levels, namely, the corporate level, the business level, and the functional level. At the corporate level, strategy is formulated for your organization as a whole. Corporate strategy deals with decisions related to various business areas in which the firm operates and competes. At the business unit level, strategy is formulated to convert the corporate vision into reality. At the functional level, strategy is formulated to realize the business unit level goals and objectives using the strengths and capabilities of your organization. There is a clear hierarchy in levels of strategy, with corporate level strategy at the top, business level strategy being derived from the corporate level, and the functional level strategy being formulated out of the business level strategy.

In a single business scenario, the corporate and business level responsibilities are clubbed together and undertaken by a single group, that is, the top management, whereas in a multi business scenario, there are three fully operative levels.

Levels of Strategy

Corporate Level

Corporate level strategy defines the business areas in which your firm will operate. It deals with aligning the resource deployments across a diverse set of business areas, related or unrelated. Strategy formulation at this level involves integrating and managing the diverse businesses and realizing synergy at the corporate level. The top management team is responsible for formulating the corporate strategy. The corporate strategy reflects the path toward attaining the vision of your organization. For example, your firm may have four distinct lines of business operations, namely, automobiles, steel, tea, and telecom. The corporate level strategy will outline whether the organization should compete in or withdraw from each of these lines of businesses, and in which business unit, investments should be increased, in line with the vision of your firm.

Business Level

Business level strategies are formulated for specific strategic business units and relate to a distinct product-market area. It involves defining the competitive position of a strategic business unit. The business level strategy formulation is based upon the generic strategies of overall cost leadership, differentiation, and focus. For example, your firm may choose overall cost leadership as a strategy to be pursued in its steel business, differentiation in its tea business, and focus in its automobile business. The business level strategies are decided upon by the heads of strategic business units and their teams in light of the specific nature of the industry in which they operate.

Functional Level

Functional level strategies relate to the different functional areas which a strategic business unit has, such as marketing, production and operations, finance, and human resources. These strategies are formulated by the functional heads along with their teams and are aligned with the business level strategies. The strategies at the functional level involve setting up short-term functional objectives, the attainment of which will lead to the realization of the business level strategy.

For example, the marketing strategy for a tea business which is following the differentiation strategy may translate into launching and selling a wide variety of tea variants through company-owned retail outlets. This may result in the distribution objective of opening 25 retail outlets in a city; and producing 15 varieties of tea may be the objective for the production department. The realization of the functional strategies in the form of quantifiable and measurable objectives will result in the achievement of business level strategies as well.

Summary:

1. Corporate Level Strategy:
   • Defines the business areas in which your firm will operate.
   • Involves integrating and managing the diverse businesses and realizing synergy at the corporate level.
   • Top management team is responsible.
2. Business Level Strategy:
   • Involves defining the competitive position of a strategic business unit.
   • Decided upon by the heads of strategic business units and their teams.
3. Functional Level Strategy:
   • Formulated by the functional heads along with their teams.
   • Involve setting up short-term functional objectives.

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What Is the Strategic Management Model-

The strategic management model -- or strategic planning model, as it is also known -- is a tool used by managers to plan and implement business strategies. Although there are variations of the strategic management model, most are divided into six stages. Understanding these six stages will help managers to create and implement strategies in their own firms.

Mission

The mission -- the most basic part of the strategic management model -- is a broad focus that the firm's top management team must decide before any other strategic planning can take place. A mission should roughly outline what a firm wants to do and how it will do it. An example of a mission is to provide low cost consumer goods directly to customers in the United States, Canada and Mexico.

Objectives

The firm's objectives follow from its mission. The objectives are measurable goals for achieving the mission. Objectives might include constructing a factory, successfully filing for a patent, raising capital or others.

Situation Analysis

The situation analysis phase of the strategic management model involves assessing the current environment. There are a variety of frameworks for performing this analysis, but the most commonly used is a SWOT analysis, which measures the firm's strengths, weaknesses, opportunities and threats.

Strategy Formulation

The stage of strategy formulation takes into account the firm's objectives and the situation analysis. Strategies are created that aim to achieve the firm's objectives given the environmental situation.

Application

The application stage of the strategic management model involves the actual implementation of the strategies. This is often the most difficult stage because it requires the most extensive cooperation of all members of the organization. The application stage can take several months or longer to complete.

Control

The control stage is the final step in the strategic management model. The purpose of this stage is to make adaptations to the strategy after the implementation. Often, the environment and even firm objectives will change. This step is used to recognize this and make adjustments to the firm strategies to adapt to these changes

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Strategic Management Process-

Strategic management process has following five steps:

The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. Let's take a look at how each of these steps ties into the overall strategic management process. The first part of strategic management is to plan and set your goals

Step # 1. Mission and Goals:

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The first step in the strategic management begins with senior managers evaluating their position in relation to the organization’s current mission and goals. The mission describes the organization’s values and aspirations; and indicates the direction in which senior management is going. Goals are the desired ends sought through the actual operating procedures of the organization. It typically describe short-term measurable outcomes.

Step # 2. Environmental Scanning:

Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes and helps in analyzing the internal and external factors influencing an organization. After executing the process, management should evaluate it on a continuous basis and strive to improve it.

Step # 3. Strategy Formulation:

Strategy formulation is the process of deciding best course of action for achieving organizational objectives. After conducting environment scanning process, managers formulate corporate, business and functional strategies.

Step # 4. Strategy Implementation:

Strategy implementation implies putting the organization’s chosen strategy in to action and making it work as intended. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and effectively managing human resources.

Step # 5. Strategy Evaluation:

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Strategy evaluation which is the final step of strategy management process involves- appraising internal and external factors, measuring performance, and taking remedial/corrective actions. Evaluation assure the management that the organizational strategy as well as its implementation meets the organizational objectives.

These steps are carried by the businesses, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situation’s requirement, so as to make essential changes.

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What is Strategic Management Process

Strategic management involves certain functions or activities. The systematic way of doing these functions or activities is described as strategic management process.

It consists of:

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1. Strategy formulation,

2. Implementation,

3. Evaluation & control

Process # 1. Strategy Formulation:

Strategy formulation is the first phase in the strategic management process. It is concerned with devising a suitable plan of action after studying the external business environment, analysing the industry and assessing the internal capabilities of the business concern. It involves six important steps.

They are:

i. Defining the company mission,

ii. Analysis of the external business environment,

iii. Industry analysis,

iv. Internal analysis of the firm,

v. Strategic alternatives, and

vi. Strategic choice.

The steps to be followed for the formulation of a strategy are explained below:

i. Defining the Company Mission:

The first step in the formulation of a strategy is a clear definition of the mission of the company. This is necessary to formulate an ideal strategy. Otherwise, the strategy will not produce the desired results. An ideal strategy is one which reflects the mission of the company. A mission is the long-term vision of what an organisation wants to be and to whom it wants to serve and what impact on the society. The mission is, thus, the basic, unique purpose that differentiates a business from others.

ii. Analysis of the External Business Environment:

The second step in the formulation of a strategy is an analysis of the external business environment. It is concerned with studying or observing what is prevailing in the external business environment and what changes have taken place. Such an assessment is necessary because every incident or change will have either positive or negative impact on the business.

It involves – (a) analysis of remote environment and (b) analysis of operating environment. The external business environment thus provides opportunities or threats to the business concerns. The business concern must formulate a suitable strategy to exploit the opportunities or manage threats depending up on its strengths or weaknesses.

iii. Analysis of the Industry:

The third step in the formulation of a strategy is an analysis of the industry. It involves the examination of certain forces operating in an industry to understand the nature and the degree of competition in that industry. The level of competition in an industry depends on five basic forces which determine the profit potential of an industry. They are (a) the threat of new entrants, (b) The bargaining power of buyers, (c) The bargaining power of suppliers, (d) The threat of substitute products, and (e) Rivalry among the existing firms.

The study of these forces indicates the trend of industry, the strength and weakness of the company in the industry. Such a study will be useful to formulate a suitable strategy to utilise the opportunities or threats.

iv. Internal Analysis of the Firm:

The fourth step in the formulation a strategy is a thorough internal analysis of the firm. It is concerned with a systematic appraisal or examination of the internal capabilities of a firm. Such an appraisal is necessary to know the strengths and weaknesses of the firm in the areas of finance, production, marketing, technology, research and development, and human resource management.

A systematic internal analysis of the firm involves (a) identification of strategic internal factors and (b) evaluation of the strategic internal factors to identify the key strategic strength and weakness. A factor is considered a strength only when a firm has a distinct competency in it than the competitors in the industry.

A factor is considered a weakness only when a firm performs it poorly than the competitors in the industry. A new strategy therefore has been formulated after considering the internal strategic strengths and weaknesses of the firm to utilise the external opportunities or minimise its activities to overcome threats.

v. Strategic Alternatives:

The fifth step in the formulation of a strategy is developing strategic alternatives. They are concerned with identifying other possible ways of achieving the same strategy formulated to utilise external business opportunities or minimise the firm’s activities to overcome threats.

For example, growth strategy may be achieved by intensive growth strategy of market penetration, market development, and product development or integrative growth strategy of horizontal integration and vertical integration or diversification strategy depending upon the internal strengths and weaknesses provided the external business environment is favorable.

vi. Strategic Analysis and Choice:

The last step in the formulation of a strategy is strategic analysis and choice. Strategic analysis involves a systematic evaluation of strategic alternatives with reference to certain criteria. Each alternative has its own merits and demerits but all alternatives cannot be equally appropriate.

Each alternative should be examined to determine its:

a. Relevancy,

b. Feasibility and

c. Acceptability.

a. Relevancy:

Relevancy of a strategy refers to the examination of the appropriateness of a strategy with reference to certain aspects. So, the strategists should examine whether –

(i) The strategy is relevant to the mission of the company or not

(ii) The strategy is helpful to accomplish the long-term objectives or not

(iii) The strategy is fit to the strategic strengths and weaknesses of the company or not

(iv) The strategy exploits the external business opportunities or minimises its activities to overcome the threats or not.

b. Feasibility:

Feasibility of a strategy refers to the possibility of achieving the strategy. For testing the feasibility of a strategy, the strategists should examine before the selection of a strategy whether –

(i) The availability of resources are sufficient or not

(ii) The availability of the technology is appropriate or not

(iii) The availability of inputs are sufficient or not

(iv) The organisation’s structure is suitable or not.

c. Acceptability:

Acceptability of a strategy refers to the examination of the agreeableness of a strategy to certain interested parties in an organisation. So, the strategists should examine whether –

(i) The strategy satisfies the criterion of ROI to the management or not

(ii) The strategy is acceptable to the shareholders or not

(iii) The strategy will affect the present employees or not

(iv) The strategy will affect the relationship with the existing customers and suppliers or not

vii. Strategic Choice:

Strategic Choice is concerned with the selection of the best strategy among alternatives. The process of strategy formulation, thus, comes to an end with the choice of an appropriate strategy.

Process # 2. Strategy Implementation:

Strategy implementation is the second phase in the strategic management process. It is concerned with putting the strategy into operation or translating the strategy into strategic action. It necessitates three interrelated activities of (i) Determination of annul objectives, (ii) Development of specific functional strategies, and (iii) Development of policies. For the successful implementation, the strategy must be also institutionalised through structure, leadership, and culture.

Process # 3. Strategy Evaluation and Control:

Strategy evaluation and control is the last phase in the strategic management process. Strategy evaluation is concerned with examining whether the strategy implemented is working or producing results or accomplishing its objectives or not. Strategic control is concerned with continuous monitoring and tracking the strategy— putting the strategy in the right path or direction.

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