An Overview of Strategic Management

By ZEESHAN DANIEL

What we shall talk about

What is Strategic Management? Important issues in Strategic Management. Strategic Management Vs Strategic Planning. Stages of Strategic Management. Why some firms do no Strategic Management Questions.

Strategic Management can be defined as, art and science of formulating, implementing & evaluating cross-functional decisions that enable an organization to achieve its objectives. (Fred R. David)

Must keep in mind when make decisions of Management.

Globalization Natural environment

Key Terms in Strategic Management

Competitive Advantage Strategists Vision and Mission Statements Business ethics and Social Responsibility Operations Management Transition Management

Strategic Management Vs Strategic Planning.

Strategic Planning
Business world Strategy formulation

Strategy Management
Academia Strategy formulation, implementation, evaluation.

Stages of Strategic Management

Strategy evaluation

Strategy Implementation

Strategy Formulation

Strategy Formulation
The base stage

Choosing particular strategies to pursue

Generating alternative strategies Establishing long-term objectives Determining internal strengths and weaknesses
What do we want to Identifying an organizations external opportunities and threats. What is our become? business?

Developing a vision and mission

Strategy formulation decisions commit an organization to specific: Products, Markets, Resources, and Technologies Over an extended period of time.

Strategy Implementation
Choosing particular strategies to pursue

Generating alternative strategies Establishing long-term objectives Determining internal strengths and weaknesses
Identifying an organizations external opportunities and threats.

Developing a vision and mission

Strategy implementation
Mobilizing employs and managers to put formulated strategies into actions.

Often considered to be most difficult stage in strategic management.

Linking employ compensation to organizational performance Developing and utilizing information system Redirecting marketing efforts Creating an effective organizational structure

Developing a strategy supportive culture

Strategy evaluation
Managers desperately need to know when particular strategies are not working well All strategies are subject to future modification because external and internal factors are constantly changing.

Strategy evaluation
Reviewing external and internal factors that are bases for current strategies

Measuring performance

Taking corrective actions

Why some firms do no strategic management

Poor reward structure Firefighting Waste of time Too expensive Laziness Self-interest Honest difference of opinion suspicion

Benefits of Strategic Management

Strategic management allows and organization to be more proactive than reactive in shaping its own future. It allows an organization to initiate and influence activities. Through involvement in the process managers and employ become committed to supporting the organization.
Cont

Benefits of Strategic Management

1. It allows for identification, prioritization, and exploitation of opportunities. 2. It minimizes the effect of adverse conditions and changes. 3. It allows major decisions to better support established objectives. 4. It allows more effective allocation of time and resources to identified opportunities. 5. It create a framework for internal communication among personals.
Cont

Benefits of Strategic Management

6. It helps integrating the behavior of individual into total efforts. 7. It provides a bases for clarifying individual responsibilities. 8. It encourages forward thinking. 9. It encourages a favorable attitude toward change. 10. It gives a degree of discipline and formality to the management of a business.

Questions?
zeeshandanielcma@gmail.com