Professional Documents
Culture Documents
Strategic Management Process
Strategic Management Process
Strategic Management Process
Environmental Analysis
Organizational Analysis
Setting objectives and Goals Reset if required Identifying alternatives and Goals Reformulate if required
Choice of Strategy
Reimplement if required
Implementation of Strategy
Feedback
Modernization technology as a strategic tool to increase production, productivity or reduced cost, competitive strength Integration- Vertical integration- forward or backword, Horizontal integration- ownership over competitors Diversification-change in business definition either in terms of customer functions, customer groups or alternative technology. To minimize risk, threat, weaknesses, avoid current instability in profit and sales, higher utilization of resources, capitalizing organization strength
Joint Ventures temp. partnership for synergetic advantage to share risk, to diversify, expand, distinctive competence, manage political and cultural difficulty, technological advantage, and to explore unexplored market Strategic Alliance- companies remain independent but unite to pursue set agreed goals. Mergers- Companies merge to become larger, competitive advantage, tax benefits, overcome weakness Acquisition- Orgn which acquire another , it is acquisition and for organization which is acquired is merger.
Choice of Strategy
While making a choice , two types of factors have to be considered:
Objective Quantified
Corporate portfolio analysis Competitors Analysis Industry Analysis
Implementation of Strategy
Project ImplementationProcedural Implementation Resource Allocation Structural Implementation Functional Implementation Behavioral Implementation leadership. Organizational culture, values and ethics, corporate governance, organizational politics