Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Chapter 1

    Uploaded by

    Anonymous jTY4ExM
    Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It involves strategy formulation, implementation, and evaluation. Key aspects of strategic management include vision and mission statements, analyzing external opportunities and threats as well as internal strengths and weaknesses, and developing long-term objectives and strategies.

    Copyright:

    © All Rights Reserved

    Chapter 1

    Uploaded by

    Anonymous jTY4ExM
    4 views29 pages
    Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It involves strategy formulation, implementation, and evaluation. Key aspects of strategic management include vision and mission statements, analyzing external opportunities and threats as well as internal strengths and weaknesses, and developing long-term objectives and strategies.

    Original Description:

    fgfds

    Original Title

    chapter 1

    Copyright

    © © All Rights Reserved

    Did you find this document useful?

    Is this content inappropriate?

    Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It involves strategy formulation, implementation, and evaluation. Key aspects of strategic management include vision and mission statements, analyzing external opportunities and threats as well as internal strengths and weaknesses, and developing long-term objectives and strategies.

    Copyright:

    © All Rights Reserved
    4 views29 pages

    Chapter 1

    Uploaded by

    Anonymous jTY4ExM
    Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It involves strategy formulation, implementation, and evaluation. Key aspects of strategic management include vision and mission statements, analyzing external opportunities and threats as well as internal strengths and weaknesses, and developing long-term objectives and strategies.

    Copyright:

    © All Rights Reserved
    You are on page 1of 29

    Strategic Management –Defined

    Art & science of formulating,


    implementing, and evaluating,
    cross-functional decisions that
    enable an organization to achieve
    its objectives
    Strategic Management

    In essence, the strategic plan is a company’s


    game plan
     Strategy formulation

     Strategy implementation

     Strategy evaluation
    Strategy Formulation

    Vision & Mission

    External Opportunities & Threats

    Internal Strengths & Weaknesses

    Long-Term Objectives

    Alternative Strategies

    Strategy Selection
    Strategy Implementation

    Annual Objectives

    Policies

    Employee Motivation

    Resource Allocation
    Strategy Evaluation

    Internal Review

    External Review

    Performance Measurement

    Corrective Action
     Competitive advantage
     Strategists
     Vision and mission statements
     External opportunities and threats
     Internal strengths and weaknesses
     Long-term objectives
     Strategies
     Annual objectives
     Policies
    Strategic Management is Gaining and
    Maintaining Competitive Advantage

    Anything that a firm does especially well


    compared to rival firms
    Strategists

    Gather Information

    Analyze Information

    Organize Information
    Vision and Mission Statements

    Vision Statement –
    What do we want to become?

    Mission Statement –
    What is our business?
    External Opportunities and Threats

    Analysis of Trends
    ◦ Economic
    ◦ Social
    ◦ Cultural
    ◦ Demographic/Environmental
    ◦ Political, Legal, Governmental
    ◦ Technological
    ◦ Competitors
    External Opportunities and Threats

    Basic Tenet of Strategic


    Management
    Take advantage of
    External Opportunities

    Strategy Formulation

    Avoid/minimize impact of
    External Threats
    Internal Strengths and Weaknesses

     Controllableactivities performed
    especially well or poorly

     Determined relative to competitors


    Internal Strengths and Weaknesses

     Typically located in functional areas of the


    firm

    ◦ Management
    ◦ Marketing
    ◦ Finance/Accounting
    ◦ Production/Operations
    ◦ Research & Development
    ◦ Management Information Systems
    Internal Strengths and Weaknesses

    Assessing the Internal Environment

    Financial Ratios

    Performance Measures
    Internal Factors
    Industry Averages

    Survey Data
    Long-Term Objectives

     Specificresults that an organization


    seeks to achieve in pursuing its basic
    mission

     Long-term means more than one year


    Long-Term Objectives

     Essential for ensuring the firm’s success


    ◦ Provide direction
    ◦ Aid in evaluation
    ◦ Create synergy
    ◦ Reveal priorities
    ◦ Focus coordination
    ◦ Provide basis for planning, organizing,
    leading, and controlling
    Strategies

    Means by which long-term objectives


    are achieved
    Strategies
     Examples
    ◦ Geographic expansion
    ◦ Diversification
    ◦ Acquisition
    ◦ Product development
    ◦ Market penetration
    ◦ Retrenchment
    ◦ Divestiture
    ◦ Liquidation
    ◦ Joint venture
    Annual Objectives

    Short-term milestones that firms


    must achieve to reach long-term
    objectives
    Policies

    Means by which annual objectives


    will be achieved
    Strategic Management Model

     StrategicManagement Process
    ◦ Dynamic & continuous
    ◦ More formal in larger organizations
     Communication is a key to
    successful strategic management
    Benefits of Strategic Management
     Nonfinancial Benefits
    ◦ Enhanced awareness of threats
    ◦ Improved understanding of competitors’ strategies
    ◦ Increased employee productivity
    ◦ Reduced resistance to change
    ◦ Clearer understanding of performance-reward
    relationship
    ◦ Enhanced problem-prevention capabilities
     Lack of knowledge of strategic planning
     Poor reward structures
     Fire fighting
     Waste of time
     Too expensive
     Laziness
     Content with success

    (continued)
     Fear of failure
     Overconfidence
     Prior bad experience
     Self-interest
     Fear of the unknown
     Honest difference of opinion
     Suspicion

    You might also like