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AMITY UNIVERSITY, DUBAI

BUSINESS POLICY AND STRATEGIC MANAGEMENT


ASSIGNMENT ON

STRATEGIC MANAGEMENT

SUBMITTED BY:
TANIYA WILLY
BBA (G)
AUD1537

STRATEGIC MANAGEMENT
What is Strategic Management?
Strategic management means formulation and implementation of the major goals and
initiatives taken by a companys Top Management on behalf of owners, based on
consideration of resources and an assessment of the internal and external environments in
which the organization competes.

MEANING
Strategic Management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage for their
organization. An organization is said to have competitive advantage if its profitability is
higher than the average profitability for all companies in its industry.
Strategic management is nothing but planning for both predictable
as well as unfeasible contingencies. It is applicable to both small as well as large
organizations as even the smallest organization face competition and, by formulating and
implementing appropriate strategies, they can attain sustainable competitive advantage.

IMPORTANCE

Strategic management seeks to coordinate and integrate the activities of the


various functional areas of a business in order to achieve long-term
organizational objectives.

It represents a framework for improved coordination and control of activities.

It minimizes the effects of adverse conditions and changes.

It allows major decisions to better support established objectives.

It allows more effective allocation of time and resources to identified opportunities.

The initial task in strategic management is typically the compilation and


dissemination of the vision and the mission statement. This outlines, in essence, the
purpose of an organization.

Strategies are usually derived by the top executives of the company and presented to
the board of directors in order to ensure they are in line with the expectations of
the stakeholders.
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The implications of the selected strategy are highly important. These are illustrated
through achieving high levels of strategic alignment and consistency relative to both
the external and internal environment.
All strategic planning deals with at least one of three key questions:
"What do we do?"
"For whom do we do it?" and
"How do we excel?"
In business strategic planning, the third question refers more to beating or avoiding
competition.

ELEMENTS OF STRATEGIC MANAGEMENT


There are three main elements for strategic management
1) Strategic Analysis
Strategic analysis helps us to understand about companys strategic position. It is important to
analyze environmental changes and find out how they can affect employees. Strategic
analysis aims to create a view of the key factors which can have an impact on the present and
future performance of the company. If strategic analysis is carried out in a correct manner
then it will help you choose the right strategy.
Some key factors in strategic analysis are discussed briefly below. Understanding them can
help us to overcome difficulties.
a.
The environment:
The Company cannot exist without being able to interact with a complex commercial,
economic, political, technological, cultural and social environment. If company is faced with
changes to the environment and a clear understanding of their impact is of great importance
for the formation of your strategic plan. These external effects are called threats and
weaknesses and they are part of the SWOT analysis which will be presented in a later
module.
b.

The resources of your organization:


Resources of the organization are internal influences. This strategic capability of the company
can be seen as our strengths and weaknesses which can also be a part of our SWOT analysis.

c.

The expectations of different stakeholders:


The development of your company also depends on the expectations of the stakeholders of
the company. Beliefs and assumptions constitute the culture of a company.
A reflection upon these key factors; your company environment, resources, expectations and
objectives within the cultural and political framework of the company should be the starting
point for the execution of your strategic analysis.
2) Strategic Choice
After undertaking strategic analysis will be ready to make a strategic choice. A strategic
choice is defined as the selection of the best possible course of action based on the evaluation
of your available strategic options.
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3) Strategy Implementation
The final step, strategy implementation is defined as the way in which we will translate our
strategy into actions. Strategic implementation requires careful planning and proper
deployment of your companys resources, careful handling of possible changes in your
organization structure and effective change management. Implementation of your strategy
can take place in several stages.

DIMENSION of Strategic Management


Strategic issues requires top management decision.
Strategic issues involves the allocation of large amount of company
resources.
Strategic issues are likely to have significance impact on the long term.
Strategic issues are prosperity of the firm.
Strategic issues future oriented.
Strategic issues usually have major multifunctional or multi-business
consequences.
Strategic issues necessitate considering factors in the firm external
environment.
BENEFITS of strategy management

Promoting positive behavioral consequences enables achievement of financial goals


Assessing strategy formulation requires looking at nonfinancial evaluations as well as
financial ones
Similar to participative decision making
Managers at all levels interact in planning and implementing strategy

Levels of Strategic Management


Top managers are responsible for the overall direction and operations of an organization.
Particularly, they are responsible for setting organizational goals, defining strategies for
achieving them, monitoring and implementing the external environment, decisions that affect
entire organization. They have such titles as chief executive officer (CEO), president,
chairman, division president, and executive vice-president. Managers in these positions are
responsible for interacting with representatives of the external environment (e.g., important
customers, financial institutions, and governmental figures) and establishing objectives,
policies, and strategies.

Middle managers are responsible for business units and major departments. Examples of
middle managers are department head, division head, and director of the research lab. The
responsibilities of middle managers include translating executive orders into operation,
implementing plans, and directly supervising lower-level managers. Middle managers
typically have two or more management levels beneath them. They receive overall strategies
and policies from top managers and the translate them into specific objective and programs
for first-line managers.
First-line managers are directly responsible for the production of goods and services.
Particularly, they are responsible for directing nonsupervisory employees. First-line managers
are variously called office manager, section chief, line manager, supervisor.

MODEL OF STRATEGIC MANAGEMENT

DHL STRATEGIC MANAGEMENT


OUR VISION
Our vision emphasizes that we want to be The Logistics Company for the World. This goes
beyond the simple fact that, as a global company, we are present in over 220 countries and
territories, or that we are often the very first logistics company to enter new markets. Our
vision stresses that we want to be the logistics provider people turn to their first choice not
only for all their shipping needs, but also as an employee or investor.

OUR MISSION
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This is further underlined in our mission statement, which has four main elements:
1) We want to simplify the lives of our customers
2) We make our customers, employees and investors more successful
3) We make a positive contribution to the world
4) We always demonstrate respect when achieving our results

OBJECTIVES
The company is deeply proud of its contribution that is in their daily work. Everything that is
moved from one place to another needs the aid of logistics but behind this simple truth one
finds millions of stories. As the logistics company for the world, formed the backbone of
trade, ensuring that whatever needs to be delivered, gets delivered. A shipment placed in our
trust may include life-saving medicines, or a birthday present from a friend, or hold a
companys entire existence in the form of a prototype. They do not only deliver parcels and
packages, and make sure containers arrive at ports: we deliver prosperity, we transport health,
we power growth, and we deliver joy. Every day we connect people, improving their lives.

GOALS
Express deliveries worldwide; freight forwarding with planes, trucks, ships and trains;
warehousing services that go beyond just storage, but include everything from packaging to
repairs; international mail deliveries; customized and specialized shipping.

CORE COMPETENCIES
DHL ecommerce provides standard international parcel pick-up, delivery and return solutions
for business customers as well as e-commerce logistics and facilitation services. In its daily
business DHL Global Forwarding takes care of a variety of customers' logistics needs, from
standardized logistics operations and multi-modal transport solutions to highly individualized
industrial projects. DHL Supply Chain is the global market leader in contract logistics,
providing warehousing, managed transport and value-added services and offers solutions for
corporate information and communications management.