Strategic Management: Three Phases

1. Strategy Formulation (new business, joint venture or any other, because the firms have scare resources)
2. Strategy implementation or action stage (annual objective,polices allocate resources etc)
3. Strategy Evaluation for future modification due to change in internal and external factors.

Strategy Formulation:
Strategy formulation includes:
 Developing a vision and a mission statement.
 Identifying external opportunities and threats
 Determining internal strengths and weaknesses
 Establishing long term objectives.
 Generating alternative strategies.
 Choosing particular strategies to follow.

Strategy Implementation:
Strategy implementation is called the action stage of strategic management. It includes:
 Establishing annual objectives
 Creating effective organizational structure
 Devising policies
 Motivating employees
 Allocating resources

Strategy Evaluation:
a. Reviewing external and internal factors that are the bases for current strategies.
b. Measuring performance.
c. Taking corrective actions.