STRATEGIC MANAGEMENT

PROCESS

SUBMITTED BY:
KOMAL VERMA
09816603909
 INTRODUCTION

What is strategy?
An action a company takes to attain superior performance.
What is strategic plan?
It consists of an organization’s mission and future direction,
near term and long term performance targets, and strategy.
What is the strategic management process?
The process by which managers choose a set of strategies for
the enterprise to pursue its vision.
Why do some firms succeed while others fail?
A central objective of strategic management is to learn why
this happens.
WHY COMPANY STRATEGIES EVOLVE?
Because of internal and external events:
1.Shifting industry and competitive conditions
2.Newly emerging buyer preferences and requirements
3.The initiatives of rival firms to grab increased market
share
4.Appearance of fresh opportunities and threats
5.Advancing technology
6.Other significant events
5 TASKS OF STRATEGIC MANAGEMENT
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns
 EXTERNAL ENVIRONMENT ANALYSIS
•Identify strategic opportunities and threats in the operating environment
•The process includes following steps: scanning, monitoring, forecasting and
assessing

Immediate (Industry)

General environment

Competitor environment
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns
 INTERNAL ENVIRONMENT ANALYSIS
•Identify strengths
Quality and quantity of resources available
Distinctive competencies
•Identify weaknesses
Inadequate resources
Managerial and
organizational deficiencies
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns
STRATEGIC INTENT AND STRATEGIC
MISSION
Strategic intent is the leveraging of
firm’s internal resources,
capabilities and core competencies
to accomplish the firm’s goals in the
competitive environment

Strategic mission is the statement

of the firm’s unique purpose and
the scope of its operations in
product and market terms
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns
STRATEGIC IMPLEMENTATION
 THE STRATEGIC MANAGEMENT
PROCESS
The external
environment
Strategic
inputs
Strategic intent
The internal Strategic mission
environment

Strategic
actions

feedback Strategic
competitiveness
Strategic and above average
outcomes
returns