Professional Documents
Culture Documents
Basic Concepts of Strategic Management: "Effective Managers Live in The Present - But Concentrate On The Future."
Basic Concepts of Strategic Management: "Effective Managers Live in The Present - But Concentrate On The Future."
Basic Concepts of Strategic Management: "Effective Managers Live in The Present - But Concentrate On The Future."
Management
https://www.youtube.com/watch?v=TD7WSLeQtVw
What is Strategy?
• A strategy is a comprehensive
action plan that identifies long-
term direction and guides resource
utilization to accomplish
organizational goals
with sustainable competitive
advantage.
Strategic Planning
• …a continuous process in administration which
links goal-setting, policy-making, short term and
long-term planning, budgeting and evaluation in
a manner which spans all levels of the
organization, secures appropriate involvement of
people according to their responsibility for
implementing plans as well as people with an
interest or stake in the outcomes of those plans,
and provides a framework for the annual
planning, budgeting and evaluation cycle.
Planning
• Is an integrative process
• Involves all staff & stakeholders
• Changes in response to evaluation
• Informs other management processes
• Is a continuous process
• Works from a long-term perspective
Process of formulating,
implementing, and evaluating,
strategies to accomplish long-term
goals and sustain competitive
advantage.
Phases of Strategic Management
Environmental Evaluation
Strategy Strategy
Scanning and
Formulation Implementation
Control
Environmental Scanning
Internal: Structure
Internal: Culture
Internal: Resources
Environmental Scanning
Objectives
Strategies
Policies
Strategy Formulation
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Strategy Formulation
Unanimity of Purpose
Resource Allocation
Mission
Organizational Climate
Technology
Employees
Mission
Elements
Survival
Growth
Profit
Public
Image
Self-Concept Philosophy
Strategy Formulation
Objectives
The end results of planned activity:
• what is to be accomplished
• by when
• it should be quantified if possible
Division Level
Functional Level
Operational Level
Strategy Formulation
Strategies
• Corporate strategy directs the organization
as a whole toward sustainable competitive
advantage.
Policies
A policy is a broad guideline for decision making that
links the formulation of strategy with its implementation.
• Intel: Intel cannibalizes its own product line with better products
before a competitor does so.
Strategy Implementation
Programs
Budgets
Procedures
Strategy Implementation
Internal Review
External Review
Measuring Performance
Strategic audit
Feedback/Learning Process
Internal/External Review
Revision of Decisions
Corrective Actions
Strategic Decisions Characteristics: