POM PRESENTATION

POM PRESENTATION
TOPIC: STRATEGIC
MANAGEMENT
TOPIC: STRATEGIC
MANAGEMENT
TOPICS COVERED
TOPICS COVERED

DEFINING STRATEGIC MANAGEMENT

STAGES OF STRATEGIC MANAGEMENT

INTEGRATING INTUITION AND ANALYSIS

STRATEGIC MANAGEMENT MODEL

FINANCIAL & NON FINANCIAL BENEFITS

OF STRATEGIC MANAGEMENT

WHY SOME ORGANIZATIONS DO NO

STRATEGIC MGT

PITFALLS OF STRATEGIC MANAGEMENT

Defining Strategic Management
Defining Strategic Management
Strategic management

the art and science of formulating,

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

Companys game plan

!esults from tough managerial choices

among numerous good alternatives, and
it signals commitment to specific mar"ets,
policies, procedures, and operations
Defining Strategic Management
Defining Strategic Management
Strategy
formulat
ion
Strategy
implementa
tion
Strateg
y
evaluati
on
Stages of Strategic
Management
Stages of Strategic
Management

Strategy formulation
#
includes developing a vision and mission,
identifying an organizations e$ternal
opportunities and threats, determining internal
strengths and %ea"nesses, establishing long-
term objectives, generating alternative
strategies, and choosing particular strategies
to pursue
Strategic Formulation
Strategic Formulation

Deciding wh! new "#$ine$$e$ !%

en!e&'

Wh! "#$ine$$e$ !% "nd%n'

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Whe!he& !% e)*nd %*e&!i%n$ %&

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Whe!he& !% en!e& in!e&n!i%n(

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Whe!he& !% .e&ge %& ,%&. 0%in!

+en!#&e'

H%w !% +%id h%$!i(e !/e%+e&1

Stages of Strategic Management
Strategic Formulation
Strategic Formulation

Strategy implementation
#
re&uires a firm to establish annual objectives,
devise policies, motivate employees, and
allocate resources so that formulated
strategies can be e$ecuted
#
often called the action stage
Strategy Implementation
Strategy Implementation
Strategic Evaluation
Strategic Evaluation
Strategy evaluation

revie%ing e$ternal and internal factors that

are the bases for current strategies,
measuring performance, and ta"ing
corrective actions
Stages of Strategic
Management
Stages of Strategic
Management

Strategy formulation, implementation, and

evaluation activities occur at three
hierarchical levels in a large organization'
corporate, divisional or strategic business
unit, and functional

Strategic management helps a firm

function as a competitive team
Integrating Intuition and
Analysis
Integrating Intuition and
Analysis
Most organizations can benefit from
strategic management, %hich is based
upon integrating intuition and analysis in
decision making
Intuition is particularly useful for ma"ing
decisions in situations of great
uncertainty or little precedent
Te Strategic
Management Model
Te Strategic
Management Model
!ere are "e no"#
!ere are "e no"#
!ere do "e "ant to go#
!ere do "e "ant to go#
$o" are "e going to get
tere#
$o" are "e going to get
tere#
%inancial &ene'ts of Strategic
Planning
%inancial &ene'ts of Strategic
Planning
(usinesses using strategic-management
concepts sho% significant improvement in
sales, profitability, and productivity
compared to firms %ithout systematic
planning activities
)igh-performing firms seem to ma"e more
informed decisions %ith good anticipation of
both short- and long-term conse&uences
(on 'nancial )ene'ts of
Strategic Planning
(on 'nancial )ene'ts of
Strategic Planning
*t allo%s for identification, prioritization,
and e$ploitation of opportunities
*t provides an objective vie% of
management problems
*t represents a frame%or" for improved
coordination and control of activities
*t minimizes the effects of adverse
conditions and changes
!y Some %irms do no
Strategic Planning
!y Some %irms do no
Strategic Planning
Pitfalls in Strategic
Planning
Pitfalls in Strategic
Planning

+op managers not actively supporting the

strategic-planning process

,ailing to use plans as a standard for measuring

performance

Delegating planning to a -planner. rather than

involving all managers

,ailing to involve "ey employees in all phases of

planning

,ailing to create a collaborative climate supportive

of change