Topic : Strategic management

We will discuss-

 Strategic management

Presented By -
Dr. Sahnaj Rahmatulla Laskar
Assistant professor
USTM, Meghalaya,
Name of the Paper: Strategic Management
Paper code: MBA 301
Email-Sahnaj077@gmail.com
The word "strategy" comes from the Greek word strategos,
which means "general". It was originally used in a military
context to refer to the art of war.
Strategic Management is the formulation and
implementation of the major goals and initiatives taken
by a company's top management on behalf of owners
Considering -Resources and Assessment of the Internal
and external Environments in which the organization
competes.
It is the process of developing and implementing a plan
to achieve an organization's long-term goals.
Strategic management is important because it helps organizations to:
 to stay competitive in a changing environment .
 to achieve their goals and objectives.
 To make effective decisions
 to assists in solving problems that require time and resources to handle.
 To improve the performance of any company and increase its chances of
success in the long run.
 Characteristics of Strategic Management :
1. Long-term Focus: Emphasizes long-term goals and sustainability.
2. Systematic Approach: Follows structured processes and methodologies.
3. Environmental Analysis: Involves continuous monitoring of the internal and external environment.
4. Goal Alignment: Aligns organizational goals with strategic direction.
5. Resource Allocation: Efficient allocation of resources to support objectives.
6. Flexibility: Adaptable to changing circumstances and market dynamics.
7. Performance Metrics: Measures progress using Key Performance Indicators (KPIs).
8. Inclusivity: Involves input from various organizational levels.
9. Continuous Improvement: Fosters a culture of ongoing enhancement.
10. Effective Communication: Ensures alignment among stakeholders.
In short Strategic Management ….
 It can make a difference in how well an organization performs.▪
 Managers in organizations of all types and sizes face continually changing
situations. They cope with this uncertainty by using the strategic
management process to examine relevant factors and decide what actions to
take.
 It is important because organizations are complex and diverse. Each part
needs to work together toward achieving the organization’s goals; strategic
management helps do this.
The features of strategic management:

 Long-term Orientation: Strategic management is focused on achieving long-term

objectives and sustainable success rather than short-term gains.
 Systematic Process: It follows a systematic and structured approach, involving a series
of interconnected processes, from formulation to implementation and evaluation.
 Environmental Analysis: Continuous environmental scanning is a critical feature,
involving the monitoring and analysis of both internal and external factors to identify
opportunities and threats.
 Goal Alignment: Strategic management ensures that organizational goals and
objectives at different levels align with the overall strategic direction.
 Resource Allocation: It involves the efficient allocation of resources, including
financial, human, and technological resources, to support the achievement of strategic
objectives.
 Flexibility and Adaptability: Strategic management allows for flexibility and
adaptability in response to changing circumstances, market dynamics, and unforeseen
challenges.
 Performance Measurement: Key Performance Indicators (KPIs) and metrics are used
to measure progress and performance against strategic goals.
 Participative and Inclusive: It often involves input and participation from various levels of the
organization, ensuring that insights and perspectives from different departments and employees
are considered.
 Continuous Improvement: Strategic management fosters a culture of continuous improvement,
where strategies are revised and refined as needed to enhance performance and competitiveness.
 Effective Communication: Ensuring effective communication of the strategic plan to all
stakeholders is essential to ensure everyone is aligned with the organization's strategic direction.
 Risk Management: It involves the identification, assessment, and mitigation of risks and
uncertainties that may affect the achievement of strategic goals.
 Integration Across Functions: Strategic management encourages integration and coordination
of efforts across different functions and departments to achieve common objectives.
 Leadership Involvement: Leadership plays a crucial role in driving the strategic
management process and ensuring its successful implementation.
 Ethical Considerations: Ethical considerations and corporate social responsibility are
integral to strategic management, aligning strategies with ethical principles and social
values.
 Global Perspective: In today's globalized world, strategic management often
incorporates a global perspective, considering international markets and competitors.
 Customer-Centric Approach: Many strategic management approaches prioritize a
customer-centric focus, tailoring strategies to meet the needs and expectations of
customers.
Examples :

1. Reliance Industries Limited: Reliance, under the leadership of Mukesh Ambani, has
employed strategic management to diversify its business portfolio from petrochemicals
into telecommunications and digital services. Their strategic vision led to the launch of
Jio, which disrupted the telecom industry in India.
2. Tata Group: The Tata Group is known for its strategic expansion into various
industries, including steel, automobiles, and information technology. Tata Consultancy
Services (TCS), a part of the Tata Group, is a global IT services giant that has
strategically expanded its presence worldwide.
3. Infosys: Infosys, an IT services company, has used strategic management to grow its
global footprint. It focused on offering high-quality software services to multinational
corporations, becoming one of India's leading IT firms.
What Strategic Planning is Not
 A strategic plan involves many concepts and includes a lot of information,
however, there are certain things it is not.
 A strategic plan is not based on just one goal or idea; instead, it encompasses
many goals that will help the organization accomplish its vision.
 A strategic plan does not negate the decisions that leaders have to make in
the present moment;
 a strategic plan is meant to make the organization more adaptable, however,
leaders still have to make decisions based on current information and the
direction of the market.
 A strategic plan is not simply a list of objectives to check off; a strategic plan
is meant to be creative
Strategic management process
…
Strategic Decision Making Process

Strategic Decision Making Process

1.Scanning the environment.
2.Analyzing strengths and weaknesses.
3.Identifying opportunities and threats.
4.Setting goals.
5. Developing strategies.
6.Implementing strategies.
7.Evaluating results.
 The strategic management process is a systematic approach that organizations use to plan,
implement, and evaluate their strategies for achieving long-term goals and maintaining a
competitive advantage. Here's a brief overview of each step:
1. Environmental Analysis:
1. In this step, organizations assess their internal and external environments.
2. This involves analyzing factors such as market trends, competitors, regulatory changes, and internal
strengths and weaknesses.
3. The goal is to gain insights into the organization's current position and potential opportunities or
threats.
2. Strategy Formulation:
1. Organizations formulate a clear and comprehensive strategy based on the insights gained from
environmental analysis.
2. This step involves setting specific goals, defining strategies to achieve them, and allocating
resources effectively.
3. It's about making choices and trade-offs to pursue the most promising paths.
 Strategy Implementation:
 After formulating the strategy, organizations put it into action.
 This involves translating the strategic plan into concrete actions, tasks, and projects.
 Effective communication, resource allocation, and leadership are crucial during
implementation to ensure alignment with the strategic vision.
 Strategy Evaluation:
 Organizations continuously monitor and assess the progress and effectiveness of their
strategy.
 Key Performance Indicators (KPIs) and metrics are used to measure performance against
strategic objectives.
 The evaluation phase helps identify areas where the strategy is succeeding and where
adjustments are needed.
 Strategy Adjustment:
 Based on the evaluation findings, organizations make necessary adjustments to the strategy.
 This may involve refining the strategy, reallocating resources, or changing tactics to address
emerging challenges or opportunities.
 The goal is to ensure that the strategy remains relevant and effective.
 Communication and Alignment:
 Clear and effective communication is essential throughout the strategic management process.
 Stakeholders, both internal and external, need to understand the organization's strategic direction.
 Alignment ensures that everyone is working toward common goals and objectives.
 Each step is interconnected and iterative. Organizations continuously cycle through these
steps to adapt to changing circumstances and maintain their competitive edge in a dynamic
business environment.
Thank you
1. Find one company facing strategic challenges. Analyze its strategic decisions,
challenges, and outcomes. Suggest alternative strategies ,recommendations.
2. Create your own company . Formulate its one vision, mission, objectives, and detailed
action plans.
3. Choose one company . Conduct a competitive analysis of a specific industry.
4. Organize an industry panel discussion where you have to play the roles of industry
experts, discussing the current trends and future prospects of your relevant industry.
5. Formulate your own business plan and its innovative business ideas.
6. Track and analyze current business news related to strategic management. Identify
companies facing strategic issues and propose solutions.
7. Suppose your company particular brand is not able to get sell despite its good quality
and features. Customers are not able to recall it. Create role-playing scenarios where
you need to act as executives making strategic decisions under pressure or in crisis.
8. Suppose you are doing good in music player industry but smartphones has disrupted
the music player industries.
9. Suppose you are doing good in your physical book store but getting challenge from
online platforms.
 The emergence of ride-sharing services
 Streaming services like Netflix
 The rise of e-commerce,
 Customer changing trends , preferences eg. towards fast and convenient delivery.
 Electric vehicle manufacturers like Tesla
 Impact of smartphones in various industries
 Trend of rising Home stay in hotel industry
 Opportunities for the companies specializing in EV technology
 How to cope up intensify competition as new players entering into the market,
 How to tackle stricter environmental regulations/policies which is disrupting the
automotive industry.