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Strategic Management
Strategic Management
Strategic Management
Introduction
Objectives
Goals
Synergy
Common threat
What is Strategic
Management?
William Glueck defines strategic
management as “a stream of decisions and
actions which leads to the development of an
effective strategy or strategies to help achieve
corporate objectives”.
Strategic management consists of the
analysis, decisions, and actions an
organization undertakes in order to create and
sustain competitive advantages.
The definition captures two main elements:
Strategic control
A comprehensive model of the strategic
management process
1.Strategy formulation
Business definition, mission, purpose, and objectives
Environmental appraisal
Organizational appraisal
Strategic alternatives and choice
2.Strategy implementation
Project implementation
Procedural implementation
Structural implementation
Functional implementation
Behavioural implementation
3.Strategy evaluation
4.Strategy control
3.
Structure of Strategic
Management
Mission
The mission spells out what the
ambitions of the firm are, where
exactly it seeks to reach and what it
would like to be in the future.
Reasons why corporate define
mission
Feasible
Precise
Clear
Motivating
Distinctive
Indicate major components of strategy
Indicate how objectives are to be
accomplished
Examples of Mission
Microsoft Corporation:
“Empower people through great
software anytime, anyplace, and on
any device”.
Otis Elevator:
“Our mission is to provide any
For Intel:
“Product innovation is the main objective”.
Areas where corporate objectives
have to be set
Growth in assets, in revenue, in profits
Example: ITC
Market share
Example: For Colgate India, market share is one
Contd…
Human resources
Example: Computer software firm Infosys
holds development of a cadre of software
professionals as a major corporate objective.
Corporate image
Example: Tatas lays great emphasis on the
1. Formal-structured Approach
This approach involves systematic planning and
set procedures.
Different types of planning systems such as
strategic planning, corporate planning or long-
range planning are used.
Example: Larsen & Toubro (L&T) adopts a formal