2. Copyright © Glencoe/McGraw-Hill Slide 1 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process In this section: Business changes so rapidly today that it is difficult for managers to maintain current plans. It is the responsibility of upper management to develop corporate plans for the future and to engage in strategic management. This section discusses: What Is Strategic Management? Strategic Management Approach

3. Copyright © Glencoe/McGraw-Hill Slide 2 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process What You’ll Learn What steps are taken in the strategic management process. The objectives of a company’s mission statement. The differences between missions and goals. How to differentiate among policies, procedures, and rules. How a SWOT analysis works. What organizational factors need to be evaluated in implementing a strategic plan..

4. Copyright © Glencoe/McGraw-Hill Slide 3 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process Why It’s Important To keep a company competitive and profitable, managers must implement the strategic goals that are set by top-level management.

5. Copyright © Glencoe/McGraw-Hill Slide 4 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process Key Terms strategic management SWOT analysis formulating strategy implementing strategy mission statement evaluating strategy goals

6. Copyright © Glencoe/McGraw-Hill Slide 5 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process Strategic Management Approach Formulation—developing the strategic plan. Implementation—putting the formulated plan to work. Evaluation—continuously evaluating and updating the strategic plan. Most companies use a strategic management approach made up of these three phases. Each is critical to the success of the strategic management process.

7. Copyright © Glencoe/McGraw-Hill Slide 6 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process Formulating Strategy Identifying the mission statement. Identifying past and present strategies. Diagnosing past and present performance. Setting goals. Policies, procedures, and rules. SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Formulating strategy is developing the grand- and business-level strategies to be used by the company. This strategy includes:

8. Copyright © Glencoe/McGraw-Hill Slide 7 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process

9. Copyright © Glencoe/McGraw-Hill Slide 8 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process

10. Copyright © Glencoe/McGraw-Hill Slide 9 of 9 BUSINESS MANAGEMENT Real-World Applications & Connections GLENCOE Section 10.2 Strategic Management Process Fact and Idea Review 1.What is the most important part of strategic management? 2.What are the three phases of the strategic management approach? 3.What is the difference between a policy, a procedure, and a rule? 4.What are the four components of a SWOT analysis? 5.What are three basic evaluation activities?