LECTURE 1

Course: Strategic Management

Level: Masters

Topic: Introduction to Strategic Management

Lecturer: Prof M.Dandira

Cell: 0785150133
 TODAY’S LECTURE

Introduction to Strategic Management

PRESENTATION LAYOUT
 Lecture Objectives
 Definition of strategy in general
 Definition of company strategy
 Definition of strategic Management
 Definition of competitive advantage
 Most frequently used strategic approaches
 Characteristics of a good strategy
 Strategy making as an on going process
 Why strategies are needed?
 Conclusion
 References
 LEARNING OBJECTIVES
By the end of the lecture, students should be able to:
 Define the term strategy
 Explain the term company strategy
 Explain the term strategic management
INTRODUCTION

“Without a strategy the organisation is like a

ship without a rudder, going around in
circles”
(Joel Ross and Michael Kami, 2001)
WHAT IS A STRATEGY?

 Generally, a strategy is a plan of action

designed to achieve a particular goal.
 Students to give general examples of
strategies in life.
COMPANY STRATEGY
 A company’s strategy consists of the
competitive moves and business approaches
that managers employ to grow the business,
attract and please customers, compete
successfully, conduct operations, and achieve
the targeted levels of organisational
performance (Thompson and Strickland 2010)
COMPANY STRATEGY CTD
In other words, a company’s strategy is all about:
 How management intends to grow the bus.
 How it will build a loyal clientele and
outcompete rivals.
 How each functional unit of the business will be
operated and
 How performance will be boosted.
DEFINITION OF MANAGEMENT
 The organization and coordination of the
activities of a business in order to achieve
defined objectives.

(http://www.businessdictionary.com/definiti
on/management.html)
STRATEGIC MANAGEMENT
DEFINITION 1
 Strategic Management is a process directed
by top management to determine the
fundamental aims and goals of the
organisation and ensure a range of decisions
which will allow for the achievement of
those aims or goals in the long term , whilst
providing for adaptive responses in the
shorter term.
STRATEGIC MANAGEMENT
DEFINITION 2
 It is the process of specifying the
organisation’s mission, vision and objectives,
developing policies and plans, often in terms
of projects and programs, which are designed
to achieve these objectives, and then
allocating resources to implement the policies
and plans, projects and programs
ITRODUCTION TO STRAT MGT
CTD
 Most strategies undertaken by firms are
earmarked at improving the company’s
financial performance, strengthen its long
term competitive position and gain a
competitive edge over rivals.
 A strategy that sets a company apart from
rivals and yields a competitive advantage is a
company’s most reliable ticket for earning
above average profit (Thompson and
Strickland 2010)
COMPETETIVE ADVANTAGE
 It refers to a condition or circumstance that
puts a company in a favourable or superior
business position than its competitors.
 Strategic management is about seeking
competitive advantage over rivals.
 Students to give examples of competitive
advantages that companies might seek.
ITRODUCTION TO STRAT MGT
CTD
 The most frequently used and dependable
strategic approaches are:
1. Striving to be the industry’s low cost
provider
2. Creating a differentiation-based advantage
keyed to such features as high quality, higher
product range, increased performance,
technological superiority and many others.
FREQUENTLY USED STRATEGIC
APPROACHES
3. Focusing on serving the special needs and
tastes of buyers comprising a narrow niche
market.
4. Developing expertise and resource strengths
that give the company competitively
valuable capabilities that rivals cannot easily
bit.
ITRODUCTION TO STRAT MGT
CTD
 The strong connection between competitive
advantage and profitability means that the
quest for sustainable competitive advantage
should always be at the centre of the
crafting of a strategy.
CHARACTERISTICS OF A GOOD
STRATEGY
 A good and winning strategy should have the
following characteristics :
 1. There must be strategic fit between the
company’s external and internal situation.
 2. The strategy should help the company to
achieve a sustainable competitive advantage
 3. It should result in better company
performance
STRATEGY MAKING-AN OG
GOING PROCESS
 Strategy making is not a once off event.
 It evolves over time due to

1)Changing market conditions

2) Technological changes
3) Fresh moves of competitors
4) Emergence of new opportunities and
5) Some strong evidence the present strategy
is not working well.
WHY ARE STRATEGIES NEEDED?
 To proactively shape how a company’s
business will be conducted.
 To mold the independent actions and
decisions of managers and employees into a
coordinated, companywide game plan.
CONCLUSION
 What is a strategy?
 Explain Company Strategy.
 Explain the term Strategic Management.
 Explain the three characteristics of a good
and winning strategy.
 Why should a strategy making be an ongoing
process?
 Why are strategies needed in companies?
REFERENCES
 Cole G.A, (2000) Strategic Management, Ashford Colour Press
 Johnson G. and Scholes K. (1997) Exploring Corporate
Strategy, Prentice Hall International.
 Modern T. (1997) Business Strategy and Planning, McGraw Hill
Book Company.
 Norton D.P. and Kaplan S.R (1996) Translate Strategy into
Action – The Balanced Scorecard, Havard Business School
Press, Boston Massachesettes.
 Porter M.E. (1980) Competitive Strategy, The Free Press
 THOMPSON, A., STRICKLAND III AJ, GAMBLE JE 2010. Crafting
and Executing Strategy: The quest for competitive advantage:
Concepts and cases. . Mcgraw-hill/irwin, new York.
 Read articles on strategic management from different journals
and publishing houses www.emeraldinsight.com,Organisation
Studies Journal -SAGEPUB
LECTURE EVALUATION