Strategic Management

Course Objectives
• To understand the strategies Management.
• To be aware about the functions of strategic
Management.

Ms.Gagandeep Kaur,
www.cuchd.in 2Campus: Gharuan,
Assistant Mohali
Professor (UIMS)
 Topic Objectives
• Basic understanding of strategic Management.
• Importance of management functions.

Ms.Gagandeep Kaur,
www.cuchd.in 3 Assistant
Campus: Gharuan, Mohali
Professor (UIMS)
 Strategic Management Defined
The set of managerial decisions and actions that determines
the long-run performance of a corporation. It includes:
environmental scanning (internal & external)
strategy formulation
strategy implementation
evaluation and control

It focuses on integrating management, marketing,

finance/accounting, production/operations, research and
development, and computer information systems to achieve
organizational success.

www.cuchd.in Campus: Gharuan, Mohali

 Benefits of Strategic Management

• Clearer sense of strategic vision

• Sharper focus on what is strategically
important
• Improved understanding of rapidly changing
environment

www.cuchd.in Campus: Gharuan, Mohali

 Three Key Strategic Questions
• Where is the organization now?
• If no changes are made, where will the
organization be in one, two, five or ten years?
Are the answers acceptable?
• If the answers are not acceptable, what specific
actions should management undertake? What
are the risks and payoffs involved?

www.cuchd.in Campus: Gharuan, Mohali

 Strategic Management Model
Environmental Strategy Strategy Evaluation
Scanning Formulation Implementation and Control

External Mission
Reason for
Societal
existence
Environment Objectives
General Forces
What results
to
Task Strategies
accomplish
Environment
by when Plan to
Industry Analysis
achieve the
Policies
mission &
Internal objectives Broad
guidelines for Programs
Structure decision Process
Chain of Command making Activities to monitor
needed to performance
Culture Budgets and take
accomplish
Beliefs, Expectations, a plan corrective
Cost of the
Values action
programs
Procedures
Resources
Sequence
Assets, Skills
of steps
Competencies,
needed to
Knowledge do the job Performance

Feedback/Learning

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 Environmental Scanning

Monitoring, evaluating and disseminating information from

the environment to key people within the corporation.

Scan via SWOT analysis:

Look for opportunities/threats in the external
environment

Look for strengths/weaknesses in the internal

environment

www.cuchd.in Campus: Gharuan, Mohali

 Strategy Formulation

The process of developing long-range plans to deal effectively with

environmental opportunities and threats in light of corporate
strengths and weaknesses.

Composed of:

• Mission
• Objectives
• Strategies
• Policies

www.cuchd.in Campus: Gharuan, Mohali

 Mission

The purpose or reason for the corporation’s existence.

It tells who the company is, what they do as well as
what they’d like to become.
 Objectives

The end results of planned activity. They state

WHAT is to be accomplished by WHEN. They
should be quantified, if possible.

Should be specific, measurable and obtainable.

 Hierarchy of Strategy

Corporate Corporate
Headquarters Strategy

Strategic Strategic Strategic Business

(Division
Business Business Business
Unit Unit Unit Level)
Strategy

Research Human Functional

Manufacturing Finance Marketing and Resources Strategy
Development

www.cuchd.in Campus: Gharuan, Mohali

 Evaluation and Control

The process of monitoring corporate

activities and performance results so that
actual performance can be compared with
desired performance.

www.cuchd.in Campus: Gharuan, Mohali

 Strategic Decision-Making Process
3(a) 3(b)

Scan and Analyze

Assess External
External Factors:
Environment:  Opportun-
Societal ities
Task  Threats

1(a) 1(b) 2 5(a) 5(b) 6(a) 6(b) 7 8

Examine and Review Select Generate

Evaluate the Corporate Strategic Review and and Select Implement
Evaluate Revise as and Strategies: Evaluate
Current Current: Governance: Factors Evaluate
 Mission  Board of (SWOT) Necessary: Strategic Recommend  Programs and
Performance Mission  Budgets
Results Objectives Directors in Light of Alterna- Best Control
 Strategies  Top Man- Current  Objectives tives Alternative  Procedures
 Policies agement Situation

4(a) 4(b)
Scan and
Assess Analyze
Internal Internal
Environment: Factors:
 Structure  Strengths
Culture  Weak-
Resources nesses

Strategy Strategy Evaluation

Formulation: Implementation and
Steps 1 – 6 Step 7 Control:
Step 8

www.cuchd.in Campus: Gharuan, Mohali

 Course Outcome
• Students understand management and its
strategies.
• Students became aware about the roles &
responsibilities of managers.

Ms.Gagandeep Kaur,
www.cuchd.in 15
Campus: Gharuan,
Assistant Mohali
Professor (UIMS)
 Topic Outcome
• Students gained basic understanding of
Management
• Students understand the concept of strategic
Management.

Ms.Gagandeep Kaur,
www.cuchd.in 16
Campus: Gharuan,
Assistant Mohali
Professor (UIMS)
 FAQs
• What is Management?
• What is the Strategic Management ?
• How management plays a important role in an
organization?

Ms.Gagandeep Kaur,
www.cuchd.in 17 Assistant
Campus: Gharuan, Mohali
Professor (UIMS)
 References

1. https://www.managementstudyhq.com/what-
is-management.html
2. https://en.wikipedia.org/wiki/Management
3. https://www.managementstudyguide.com/ma
nagement_process.htm

Ms.Gagandeep Kaur,
www.cuchd.in 18
Campus: Gharuan,
Assistant Mohali
Professor (UIMS)