Strategic Management
1
Strengths Weakness
Opportunities Threats
Assoc. Prof. Dr. Wongsa Laohasiriwong
Faculty of Public Health,
Khon Kaen University
Strategic Management
2

.. . . management . . .system . . . that links strategic
planning and decision making with the day-to-day
business of operational management.
[Gluck, Kaufman, and Walleck, 1982]
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
Strategic Management
3

.... the process by which the guiding members of an
organization envision its future and develop the
necessary procedures and operations to achieve
that future..
(Goodstein, Nolan, and Pfeiffer, 1992)
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
Strategic Management
4

A systems approach to identifying and making
the necessary changes and measuring the
organization’s performance as it moves towards its
vision.
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
5
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
What are the benefits of strategic management?
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



Breakthrough thinking about the future; organizational
boundaries are more flexible.
A shift in focus from the inputs that are used to run the
business to the outputs and outcomes the organization
desires to achieve.
A focus on optimizing organizational performance and
process quality as keys to delivering quality products
and services.
A move toward an organizational culture that adapts
easily to change.
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
Definition of Term
7
Vision

An idealized view of a desirable and potentially
achievable future state.
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.

A short statement describing the ideal state an
organization is striving to achieve for its clients or
the ideal state that an organization sees for society.
Source: Government of Newfoundland and Labrador. 2005. Excellence in Strategic Planning.
Definition of Term
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Mission

An enduring statement of purpose. Describes what
the organization does, who it does it for, and how it
does it.
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
Definition of Term
9
Goal

A specific statement of the desired results to be
achieved over a specified period of time.
Source: Government of Newfoundland and Labrador. 2005. Excellence in Strategic Planning.
Definition of Term
10
Objective

An objective is a measurable statement or
incremental milestone which specifies a change or
benefit that the entity hopes to achieve as it strives
to achieve a specific goal. Success in meeting the
objectives can be readily evaluated using
qualitative and quantitative measures.
Source: Government of Newfoundland and Labrador. 2005. Excellence in Strategic Planning.
Definition of Term
11
Strategic Plan

The plan which the guiding members of an
organization envision its future and develop the
necessary procedures and operations to achieve
that future [Goodstein, Nolan, and Pfeiffer,1992].
Source: Denise Lindsey Wells. Strategic Management for Senior Leaders: A Handbook for Implementation.
Vision
The destiny that we want to reach/ to be
(end point)
Mission
Scope of action that we want to implement,
Target group (Customer), philosophy or
principle of our implementation.
Strategic Issues Agenda or Focusing Area or Key Result
Area
Goal
Things that we want to achieve.
Key
Performance
Indicators
(Targets)
Indicator that show what we achieves.
(Benchmark or Milestone)
Strategies
Methods, Procedure that lead us to the
achievement of Goals/KPI/Target (Means)
Example: Starbucks Coffee
13



The first Starbucks location opened in 1971 in Pike Place
market in Seattle, WA.
Eleven years later, Howard Schultz was hired by the
company to be the director of retail operations and
marketing.
The first Starbucks with the current coffee house look and
feel was opened in 1984 in downtown Seattle.
Source: http://www.starbucks.co.th/en-US/_About+Starbucks/
Example: Starbucks Vision
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To "inspire the human
spirit," is a something that
can't be served in a cup with
whipped cream.
Source: http://www.starbucks.co.th/en-US/_About+Starbucks/Mission+Statement.htm
Example: Starbucks Mission
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1)
2)
3)
4)
5)
6)
Provide a great work environment and treat each other with
respect and dignity.
Embrace diversity as an essential component in the way we
do business.
Apply the highest standards of excellence to the purchasing,
roasting and fresh delivery of our coffee.
Develop enthusiastically satisfied customers all of the time.
Contribute positively to our communities and our
environment.
Recognize that profitability is essential to our future success.
Source: http://www.starbucks.co.th/en-US/_About+Starbucks/Mission+Statement.htm
Mission statement
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
Mission statement is more than words on a piece of
paper – it’s the philosophy that guides how we do
business/work every day.
Source: http://www.starbucks.co.th/en-US/_About+Starbucks/Mission+Statement.htm
What is SWOT?
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

SWOT is the acronym for Strengths, Weaknesses,
Opportunities, and Threats.
SWOT is very effective when applied to a specific
objective or project.
Albert S Humphrey
Source: Business.govt.nz. SWOT analysis.
AWOT Analysis is…
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
… A strategic planning
tool that separates
influences on an
organization’s future
success into internal and
external factors
Source: Business.govt.nz. SWOT analysis.
SWOT Analysis
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S – Strengths
 W – Weaknesses
 O – Opportunities
 T – Threats

Internal Factors
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
External Factors
SWOT: TOWS
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External Factors
Internal Factors
PEST
or
PESTLE
Analysis
7S Analysis
SWOT: External Factors
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Threats



External factors, beyond an
organization’s control, which could
place the organization mission or
operation at risk.
The organization may benefit by
having contingency plans to address
them if they should occur.
Classify them by their “seriousness”
and “probability of occurrence”.
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Threats
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


Who is your competition and what do they offer
that you can’t do as well or at all?
Are there “environmental” changes or situations that
could cause problems for you and your programs?
What other roadblocks are being thrown in your
path?
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
SWOT: External Factors
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Opportunities
 External
attractive factors
that represent the reason for
an organization to exist and
develop.
 What opportunities exist in
the environment, which will
propel the organization?
 Identify them by their “time
frames”
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Opportunities
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Are there new situations coming down
the road that you can take advantage of
(new programs being offered, new faculty
joining the department, new tools available to you)?


Are there gaps in the “market” that you can fill?

Are there partnerships that might be fruitful?
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
PEST
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
PEST stands for the analysis
of the external factors which
is beneficial when conducting
research before beginning a
new project or to help conduct
market research. These factors
are:
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-
PEST Analysis
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
Political – Laws, global issues, legislation and
regulations which may have an effect on your business
either immediately or in the future.

Economic – Taxes, interest rates, inflation, the stock
markets and consumer confidence all need to be taken into
account.

Social – The changes in lifestyle and buying trends,
media, major events, ethics, advertising and publicity
factors.

Technological – Innovations, access to technology,
licencing and patents, manufacturing, research funding,
global communications.
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
27
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
28
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
PESTLE
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Pest can also be known as PESTLE which includes other factors such as:

Legal – Legislation which have been proposed
and may come into effect and any
passed legislation’s.

Environmental – Environmental issues either
locally or globally and their social and political
factors.
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
SWOT: Internal Factors
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
Weaknesses
 Factors
that are within an
organization’s control
that detract from its
ability to attain the core
goal.
 Which areas might the
organization improve?
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
SWOT: Internal Factors
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
Strengths
 Positive
tangible and
intangible attributes, internal
to an organization.
 They are within the
organization’s control.
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Strengths
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


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What do you do particularly well?
What do you do that is unique in the “market
place” ?
What do your customers/clients ask for you to do
over and over again?
What do you have the right tools/resources to
accomplish?
Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Internal Factor :McKinsey 7S
Analysis
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
This model was developed in the 1980's by
Robert Waterman, Tom Peters and Julien
Philips whilst working for McKinsey and
originally presented in their article
" Structure is not Organisation"
McKinsey
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
McKinsey 7S Analysis
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The 7S Analysis Model became extensively
used by mangers and consultants and is one of
the cornerstones of organisational analysis.
 Essentially the model says that any
organisation can be best described by the
seven interrelated elements.

Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis Model
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Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis
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1. Strategy
Plans for the allocation of a firm's scarce
resources, over time, to reach identified goals.
Environment, competition, customers.
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis
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2. Structure
The way the organization's units relate to
each other: centralized, functional divisions
(top-down); decentralized (the trend in larger
organizations); matrix, network, holding, etc.
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis
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3. Systems
The procedures, processes
and routines that characterize
how important work is to be
done: financial systems; hiring,
promotion and performance
appraisal systems; information
systems.
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis
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4. Skills
Distinctive capabilities of
personnel or of the
organization as a whole.
5. Staff
Numbers and types of personnel
within the organization.
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
7S Analysis
6. Style
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Cultural style of the organization
and how key managers behave in
achieving the organization’s goals.
7. Shared Value
The interconnecting centre of McKinsey's model
is: Shared Values. What the organization stands
for and what it believes in. Central beliefs and
attitudes.
Source: Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_strategy/06_mckinsey.htm
SWOT MATRIX
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Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
Simple Rules SWOT Analysis
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Be realistic about the strengths and
weaknesses of your organization or group
 Distinguish between where your
organization is today, and where it could
be in the future
 Be specific: Avoid gray areas.

Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Simple Rules SWOT Analysis
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Always analyze in relation to your
core values, mission, mandate,
goals, vision.
 Keep your SWOT short and simple.
 Avoid complexity and over analysis
 Empower SWOT with a logical
conceptual framework.

Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
Create a Plan of Action
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Set goals and objectives, like with any other
plan. Limit 3-5
 What steps can you take to:
 Respond to the threat
 Take advantage of some new opportunities
 Capitalize on your strengths
 Overcome or minimize your weaknesses

Source: Centre for Instructional Development. Strategic Planning and Visioning: SWOT Technique
SWOT Analysis allows organization to…




Define realistic goals
Improve capability
Overcome weaknesses with strengths
Identify threats than can be turned into opportunities

Brainstorming is a great way of introducing all the
relevant internal and external factors for each
section of the analysis.
Source: Nishadha, SWOT analysis vs PEST analysis, When to use them. http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
Business.govt.nz. SWOT analysis.
Goals from SWOT
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


Create a page summary for the department to
laminate and post
Ensure priorities for action/goals are addressed on
meeting agendas throughout the year
Note progress on an ongoing basis.
A Tool for Strategy Selection
Possibility and Growth
Boston Four Cell BCG
Suit to the Needs
High
Low
STARS
Question Marks
Cash cows
Dogs
High
Low
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Star
Stars represent business units having large market
share in a fast growing industry. They may generate
cash but because of fast growing market, stars
require huge investments to maintain their lead.
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Cash Cows
Cash Cows represents business units having a
large market share in a mature, slow growing
industry. Cash cows require little investment and
generate cash that can be utilized for investment in
other business units.
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Question Marks
Question marks represent business units having low
relative market share and located in a high growth
industry. They require huge amount of cash to maintain or
gain market share. They require attention to determine if the
venture can be viable.
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Dogs
Dogs represent businesses having weak market shares
in low-growth markets. They neither generate cash nor
require huge amount of cash. Due to low market share,
these business units face cost disadvantages.
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Strategy Formulation
Strength
Opportunity
Threat
Weakness
(SO)
Strengthening
Strategy
(WO)
Holding Strategy
(ST)
Terminating Strategy
(WT)
Penetration Strategy
Source: BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm
Strategic
Planning
Vision
Goals KPI/
Target
Strategies
Strategy Map
Strategic
Implementation
Action Plan
Improve/Adjust
• Process
• Structure
• Technology
• Human Resource
Strategic
Control
Monitoring &
Evaluation
Review to
improve
Strategic Plan
Strategic Management Process
VISION
Goal 1
Effective
Goal 2
Mission
Quality
Goal 3
Efficiency
Goal 4
Organizational
Development
Objective 1
Objective 1
2
Objective 1
2
Objective 1
2
3
Strategy 1
Strategy 2
Strategy 3
Action
Plan
1. A
2. B
3. C
4. D
Action
Plan
5. E
6. F
7. G
Action
Plan
8. H
9. I
10. J
Action Plan








Title of the Plan
Rationale
Objectives, KPI
Process (Activities)
Gant chart
Budget
Responsible persons
Monitoring and evaluation
References
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Centre for Instructional Development. Strategic Planning and Visioning:
SWOT Technique
Business.govt.nz. SWOT analysis.
Lindsay Sherwin, McKinsey 7S Model,
http://www.lindsaysherwin.co.uk/guide_managing_change/html_change_st
rategy/06_mckinsey.htm
Nishadha, SWOT analysis vs PEST analysis, When to use them.
http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
Denise Lindsey Wells. Strategic Management for Senior Leaders: A
Handbook for Implementation.
Government of Newfoundland and Labrador. 2005. Excellence in Strategic
Planning. http://www.starbucks.co.th/en-US/_About+Starbucks/
BCG Matrix. http://www.managementstudyguide.com/bcg-matrix.htm