What is

2202 NAJ

strategic
management
(SM) ?
Delivered by Ms Lili
 T H E R O L E O F M A N A G E M E N T W H E N S E T T I N G

L O N G - T E R M G O A L S A N D I M P L E M E N T I N G

C R O S S - F U N C T I O N A L D E C I S I O N S T H A T S H O U L D

E N A B L E A B U S I N E S S T O R E A C H T H E S E G O A L S
KEY STAGES OF SM

POSITION MISSION, LONG-TERM

VISION, DECISIONS
Where the business is now

OBJECTIVES
Products and markets

Direction
KEY STAGES OF SM

CROSS- SUFFICIENT PERFORMANCE

FUNCTIONAL RESOURCES
Evaluation

Integrating and Allocation

coordinating
C O R P O R A T E
S T R A T E G Y TACTIC

short term policy or decision

a long term plan of action

aimed at resolving a

for the whole

particular problem or meeting

organisation, designed to a specific part of the overall

achieve a particular goal strategy.

 Establishing
STRENGTH OF RESOURCES

THE BUSINESS AVAILABLE

corporate
strategy

COMPETITIVE OBJECTIVES

ENVIRONMENT
STRATEGIC ANALYSIS
T H E P R O C E S S O F C O N D U C T I N G R E S E A R C H

I N T O T H E B U S I N E S S E N V I R O N M E N T W I T H I N

W H I C H A N O R G A N I S A T I O N O P E R A T E S , A N D

I N T O T H E O R G A N I S A T I O N I T S E L F , T O H E L P

F R O M F U T U R E S T R A T E G I E S .
STRENGTHS
Internal factors - Positive factors
OPPORTUNITIES
External factors - Positive factors
WEAKNESSES
SWOT analysis
Internal factors - Negative factors
a form of strategic
analysis that identifies
and analyses the main
internal strengths and
weaknesses and external
opportunities and threats
that will influence the
THREATS
future direction and
External factors - Negative
factors
success of a business.
POLITICAL AND ECONOMIC
PEST analysis
LEGAL
a form of strategic
analysis of a firm's macro
environment, including
political, economic, social
and technological factors..

SOCIAL TECHNOLOGICAL
LOW MARKET HIGH MARKET

GROWTH-HIGH

MARKET SHARE:
GROWTH-HIGH

MARKET SHARE:
Boston Matrix
'CASH COW' 'STAR'
a method of analysing the
product portfolio of a
STRATEGIC STRATEGIC
business in terms of
ANALYSIS: ANALYSIS:
market share and market
MILKING HOLDING

growth.

HIGH MARKET LOW MARKET

GROWTH-LOW GROWTH-LOW

MARKET SHARE: MARKET SHARE:

'PROBLEM CHILD'
'DOG'

STRATEGIC
STRATEGIC

ANALYSIS:
ANALYSIS:

BUILDING DIVESTING
 PORTER'S
BARRIERS TO THE POWER OF
FIVE ENTRY BUYERS

FORCES
ANALYSIS

THE POWER OF THE THREAT OF COMPETITIVE

SUPPLIERS SUBSTITUTES RIVALRY

 STRATEGIC CHOICE

ANSOFF'S MATRIX FORCE-FIELD DECISION TREES

A model used to show the degree of risk

ANALYSIS A diagram that sets out the options connected

associated with the four growth strategies of with a decision and the outcomes and
Technique for identifying and analysing the
market penetration, market development, economic returns that may result.
positive factors that support a decision ('driving
product development and diversification.
factors') and negative factors that constrain it

('restraining forces').
 STRATEGIC
IMPLEMENTATION
THE PROCESS OF PLANNING, ALLOCATING AND CONTROLLING

RESOURCES TO SUPPORT THE CHOSEN STRATEGIES.

 BUSINESS PLAN
A WRITTEN DOCUMENT THAT DESCRIBES A BUSINESS, ITS

OBJECTIVES AND ITS STRATEGIES, THE MARKET IT IS IN AND ITS

FINANCIAL FORECASTS.
 CORPORATE PLANS
A METHODICAL PLAN CONTAINING DETAILS OF THE

ORGANISATION'S CENTRAL OBJECTIVES AND THE STRATEGIES

TO BE FOLLOWED TO ACHIEVE THEM

 CORPORATE PLANS -
WHAT ARE THEY FOR ?

POTENTIAL BENEFITS POTENTIAL THE VALUE OF

LIMITATIONS CORPORATE PLANS

 The main INTERNAL
influences
on a
corporate EXTERNAL
plan
CORPORATE CULTURE
THE VALUES, ATTITUDES AND BELIEFS OF THE PEOPLE

WORKING IN AN ORGANISATION THAT CONTROL THE WAY THEY

INTERACT WITH EACH OTHER AND WITH EXTERNAL

STAKEHOLDER GROUPS.
 THE MAIN
POWER CULTURE ROLE CULTURE

TYPES OF
CORPORATE
CULTURE

TASK CULTURE PERSON ENTREPRENEURIAL

CULTURE CULTURE