Which of the following is the first step of the strategy-making process

Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial / corrective actions.

​Which of the following best defines strategic dissonance? It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.

The first step in forming a strategy is to review the information gleaned from completing the analysis. Determine what resources the business currently has that can help reach the defined goals and objectives. Identify any areas of which the business must seek external resources.

Stage 1/ Step 1: Developing a strategic vision, mission, and values. Stage 3/ Step 3: Crafting a strategy to achieve the objectives and move the company along the intended path. Stage 4/ Step 4: Executing the Strategy.

• Scanning the Environment:The process begins with the scanning of the environment, i.e. both the external and internal factors of the organization. The external environment encompasses the political, legal, technological, economic, social and cultural forces that have a great impact on the functioning of the business. The internal factors include the organizational culture, hierarchy, business processes, SWOT analysis, industrial relations, etc. that play a crucial role in performing the business operations.The role of the HR department is to collect all the information about the immediate competitors – their strategies, vision, mission, strengths, and weaknesses. This can be done through the resumes being sent by the candidates working with the other rivalry firm. Through these, HR professionals can identify the workforce, work culture, skills of the staff, compensation levels, reasons for exit and other relevant information about the competing firm.
• Identify Sources of Competitive Advantage:The next step in the strategic human resource management process is to identify the parameters of competitive advantage that could stem from diverse sources as product quality, price, customer service, brand positioning, delivery, etc.The HR department can help in gaining the competitive advantage by conducting the efficient training programmes designed to enrich the skills of the staff.
• Identify HRM Strategies:There are major four strategies undertaken by an organization to enrich the employees capabilities:a)This strategy includes the techniques as training courses, coaching sessions, education programmes to ensure that the employees abide by the rules, value and beliefs of an organization and are able to meet the performance targets.Learning as Socialization:b)This strategy helps in making the employees aware of the learning opportunities and the career development.Devolved Informal Learning:c)This strategy focuses on creating and developing communities of practice and social networks within and outside the organization.Engineering:d)Through this strategy, the HR department focuses on developing the learning environment such as knowledge about the new processes, designing of new work areas and the provision of shared spaces.Empowered Informal Learning:
• Implementing HR Strategies:Once the strategy has been decided the next step is to put it into the action. The HR strategy can be implemented by considering the HR policies, plans, actions and practices.
• Monitor and Evaluation:The final step in the strategic human resource management process is to compare the performance of the HR strategy against the pre-established standards.At this stage, certain activities are performed to evaluate the outcomes of the strategic decision: establishing the performance targets and tolerance levels, analyzing the deviations, executing the modifications.

1. Mission, Vision and Values

The first step for any business strategy is writing a mission, vision, and values statement.

This important step clarifies what the organization is about and what it is trying to achieve.

It also determines the values and guiding principles that are used to make business decisions.

Without clarity and articulation of vision, organizations are at risk of distraction and steering off course.

2. Strategic Plan

Once the mission, vision, and values are written, a strategic plan can be created.

The plan identifies the steps needed to achieve the organization’s mission.

Strategic plans can be written as long term (1-3 years) or short term (3-6 months).

It used to be that strategic plans were written as far out as ten or even twenty years.

However, because of the rapidly changing market conditions, shorter-term plans seem to be more common today.

3. Organizational Goals

The five stages of the process are: setting goals or objectives, analysis, strategy formation, strategy implementation, and strategy monitoring.

The 5 stages of the strategic management process

The strategic management process is more than a set of rules to follow. It is a philosophical approach to business. Top management must think strategically first, then apply that thinking to a process. The process is best implemented when everyone in the business understands the strategy.

1-Goal setting

How to set business goals and strategies. The purpose of setting goals is to clarify the business vision. This stage consists of identifying three facets: First, define the short- and long-term objectives. Second, identify the process of how to achieve the objectives.

Finally, personalize the process according to our staff, give each member a task with which they can be successful. During this process, check that the objectives are detailed, realistic, and coincide with the values of your business vision. Typically, the final step at this stage is to make these goals and objectives known to all staff.

The board of directors oversees the three levels of strategy in organizations: corporate, strategic business unit, and functional.

Successful strategic management involves three steps: Planning, Execution and Monitoring Developments & Progress. With strategic management, actions speak louder than words. Even effective strategic planning that yields the appropriate decisions can come up short on delivering performance improvements. Strategic Management is a more powerful means of optimizing the long-term performance of an organization. The last key to success is Repetition of the process.

A survey by Bain & Company indicated that Strategic Planning was the top choice of senior executives as a business improvement tool. In spite of its popularity, 20% of the respondents in the survey were less than satisfied with how well strategic planning met their expectations. Perhaps these users actually did a poor job with the planning process or chose an inappropriate planning model. Certainly some of them stopped after a successful planning and failed to follow through with the rest of the strategic management process. (Recent survey: http://www.bain.com/publications/articles/management-tools-strategic-planning.aspx)

The strategy making process is the activity by which an organisation defines its strategy and ensures that the defined strategy becomes a reality rather than just an abstract wish list. It involves not only coming up with a strategy but also planning how to execute it and adjusting to unexpected events. The strategy making process is obviously key to business success – and therefore central to research and Executive Education at INSEAD. Indeed, two of our most highly respected professors in this area, Professors Michael Jarett and Quy Huy, co-directors of our innovative new Executive Education program on Strategy Execution have just designed a new six-step “strategy stress test” to facilitate the strategy making process. In the following interview, they present their views (also available in video).

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Why does the strategy making process matter so much?

Michael Jarrett: What we know is about 60% of strategy execution fails.

• Overview of the complete process: 1 Step 1: Determine Organizational Readiness. 2 Step 2: Develop Your Team & Schedule. 3 Step 3: Collect Current Data. 4 Step 4:Review collected data: 5 Step 1: Identify Strategic Issues. More items

• In this article, we’ll walk you through these five stages: Goal setting - Parents and Childs… and the C suite. Analysis - Internal and external. Strategy Formulation - Effort and Impact (and KPIs) Strategy Implementation - Goals and Tasks. Remaining Agile - Evaluation and Control.

• Part of that journey is the strategy and part of it is execution. Having a good strategy dictates “how” you travel the road you have selected and effective execution makes sure you are checking in along the way.

• That said, the only way strategy gets executed is to align resources and actions from the bottom to the top to drive your vision. How are we going to get there at a functional level? Who must do what by when to accomplish and drive the organizational goals? What strategic questions still remain and need to be solved?