Strategic Management

strategy
Strategy means putting things in place
carefully, and with a great deal of thought. It
is the opposite of just waiting for things to
happen.
In a changing environment one of the most
difficult things in business is to know when
to stick to your strategy and when to change
it.

Strategic Management
Defined

Art & science of formulating,

implementing, and evaluating,
cross-functional decisions that
enable an organization to achieve
its objectives.

Another definition
The process which deals with the
fundamental organizational renewal
and growth with the development of
strategies, structures, and systems
necessary to achieve such renewal and
growth, and with the organizational
systems needed to effectively manage
the strategy formulation and
implementation processes

Benefits of Strategic
Management
Financial Benefits
Improvement in sales
Improvement in profitability
Productivity improvement

Benefits of Strategic
Management
Non-Financial Benefits
Improved understanding of competitors strategies

Enhanced awareness of threats

Reduced resistance to change
Enhanced problem-prevention capabilities

 PROCESS OF STRATEGIC
MANAGEMENT

Strategic Management Process

1)Establishing the hierarchy of strategic
intent:
Creating and communicating a vision.
Designing a mission statement.
Defining the business.
Setting objectives.

Strategic management process

2) Formulation of strategies:
Performing environmental appraisal.
Doing organizational appraisal.
Considering corporate level strategies.
Strategic analysis.
Formulating strategies.
Preparing strategic plan.

Strategy Formulation
Vision & Mission
External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies

Strategy Selection

Strategic management process.

3) Implementation of strategies:
Activating strategies.
Designing structures and systems.
Managing behavioral implementation.
Managing functional implementation.
Operational analysing strategies.

Strategy Implementation

Annual Objectives
Policies
Employee Motivation
Resource Allocation

Strategic management process

4) Performing strategic evaluation and
control:
Performing strategic evaluation.
Exercising strategic control.
Reformulating strategies.

Strategy Evaluation

Internal Review
External Review
Performance review
Corrective Actions