Beruflich Dokumente
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Course In charge
Dr. Mustaghis-ur-Rahman
Organizational Management
vs
Strategic Management
Definition
Management is the process of designing
and maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.
Harold Koontz
1976
Definition
Strategic Management
Strategy
What is Strategy?
What is Strategy?
1)
Strategic Questions
1)
2)
3)
4)
Strategic Management
Strategic Management
By combining the two terms
Strategy and Management. A
new discipline emerges Strategic
Management
Strategic Management
Strategic Management
Strategic Management is the set of
managerial decisions and actions that
determines the long run performance of
a corporation
Composition
Composition of
Strategic Management
Strategic Management is Composed
Of:
Environmental scanning
Strategy formulation
Strategy implementation
Evaluation and control
Tasks/Functions
Five Tasks/functions of SM
1) Forming a strategic vision
2) Setting objectives
3) Crafting a strategy to achieve the
desired outcomes
4) Implementation of the chosen
strategy
5) Evaluating performance and
initiating corrective adjustments
Five Tasks/functions of SM
Strategy
What is Strategy?
Strategic Management
benefits:
The units
The departments
The enterprise as a whole
SM
Definition
Strategic Management is the
set
of managerial decisions and
actions that determines the
long
run performance of a
corporation
Composition:
Environmental scanning
Strategy formulation
Strategy implementation
Evaluation and control
Nature
Competitive
Output
Effectiveness
Vision
Vision is a description of a desirable
situation for the organization or individual.
e.g
Where should the company be headed and
what kind of company do we want to
become in future
Mission
It answers the question, What does the
organization exist for
Or
What an organization is doing to realize
the vision
Definition of Objectives
Definition of Objectives
Objectives are the end results of
planned activity. They state WHAT is
to
be accomplished by WHEN.
Approaches of SM
The
The
The
The
Establishing Companys
Direction
Establishing Companys
Direction
How to Set Companys Direction?
Companys direction is guided by its
strategic
vision and mission, setting objectives, and
crafting strategy for its operations
Establishing Companys
Direction: Developing Strategic
Vision
Managers have three discernible tasks in forming a
strategic vision and making a useful direction.
1. Coming up with a mission statement that defines
what business the company is presently in and
conveys the essence of who we are, what we do,
and where we are now
2. Using the mission statement as a basis for
deciding on a long term course, making choices
about where we are going and charting a
strategic path for the company to pursue
3. Communicating the strategic vision in clear,
exciting terms that arouse organization wide
commitment
Advantages of Communicating
the Strategic Vision :
The real pay offs of a well-conceived, well worded
vision:
1. It crystallizes senior executives own views
about the firms long term vision
2. It reduces the risk of rudderless decision
making
3. It conveys organizational purpose in ways
that motivate organization members to go
all out
Establishing Objectives
Setting objectives converts the strategic
vision into specific performance targets
and also
objectives represent a Managerial
commitment
to achieving specific outcomes and results
Establishing Objectives
Objective setting needs to be more of a
top-down than a bottom-up process in
order to guide lower-level managers and
organizational units towards outcomes
that support the achievement of overall
business and company objectives.
This is also needed at all org levels
Establishing Objectives
See some strategic objectives on Page 44
Discuss, how it is different from Vision and
Mission statement?
Crafting A Strategy
Strategy making is all about How and What
How to achieve performance targets
How to out compete rivals
How to achieve sustainable competitive
Advantage
How to strengthen the enterprises long term
business positions
How to make managements strategic vision
for the company a reality
It is also action oriented; it concerns what
to do, when to do and how to do
Pattern of strategy
development?
Pattern of strategy
development?
Pattern of strategy
development?
The strategy making pyramid
In a diversified enterprise, strategies are
initiated at four distinct organizational
levels:
As a whole; Corporate Strategy
Business Strategy
Functional Strategy
Operating Strategy
Pattern of strategy
development?
Corporate Strategy
It is the over all managerial game plan
for a diversified company; it is to
establish business positions in different
industries
Pattern of strategy
development?
Business Strategy
It refers to the managerial game plan
for a single business; it is to produce
successful performance in one specific
line of business
Pattern of strategy
development?
Functional Strategy
It refers to the managerial game plan for a
particular functional activity, business process. Or
key department within a business Marketing,
product development, etc. It supports the
business strategy
Operating Strategy
It is concerned with narrower strategic initiatives
and approaches for managing key operating units
: Plants, sales districts, distribution centres and
for handling daily operating tasks with strategic
significance: advertising campaigns, material
purchasing, inventory control, maintenance etc
Pyramid of Strategy
development
External Environment..
All organizations operate within external
Environment prevailing in that society. So
these environments dictate what an
organization can do and can not do or
some time how to do. Therefore, there is
a need to the external environment needs
to be considered while making strategy at all
org. level