sm - 1 - overview_of_strategic_mangaement.ppt

7/27/2019 SM - 1 - OVERVIEW_OF_STRATEGIC_MANGAEMENT.ppt

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StrategicManagement


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Strategy

A methodor plan chosen to bring about a desiredfuture, such as achievement of a goal or solutionto a problem

The art and science ofplanning and marshallingresources for their most efficient and effectiveuse

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Strategy Involves

Organizations goals

Goal-directed actions

Matching key internal strengths withexternal opportunities and threats

Choices made where to play, how towin, to maximize long term value.


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Strategic Management

The process of analyzing the

current situation, developingappropriate strategies, puttingthose strategies into actionand evaluating, modifying, or

changing those strategies asneeded


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Basic Activities of StrategicManagement

SituationAnalysis

StrategyImplementa

tion

StrategyEvaluation

StrategyFormulation


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Characteristics of StrategicManagement

Four aspects that

set apart

StrategicManagement

Interdisciplinary

External focus

Internal focus

Future direction


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Strategic Management

Analyzing

Current

Situation

Deciding

on

Strategies

Putting

Strategies

in Action

Evaluating and

Changing

Strategies

SituationAnalysis

StrategyFormulation

StrategyImplementation

StrategyEvaluation

External

Analysis

Internal

Analysis

Organizational

ContextFunctional Competitive

Corporate


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The Strategic Management Process

Situation Analysis entails scanning andevaluating

Organizational context

External environment

Organizational environment


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Levels of Strategies

Competitive:How are we going to

compete in our chosenbusiness(es)?

FunctionalWhat resources and

capabilities do we have tosupport the corporate and

competitive strategies?

CorporateWhat direction are we going and what

business(es) are we in or do we want to bein?


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Strategic Management Process

Strategy Implementation

Putting the organizations variousstrategies into action

Strategy Evaluation

Evaluating how the strategy has beenimplemented as well as the outcomes ofthe strategy


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Strategic Management Process

A continuous cycle of

Situation analysis

Strategy formulation

Strategy implementation

Strategy evaluation


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Whos Involved withStrategic Management?

Board of Directors

Elected representatives of stockholders

Play significant role in corporate

governance Top Management Team

Ultimately responsible for everydecision and action of every

organizational employeeAct as strategic leaders

Other Strategic Managers and OrganizationalEmployees

Responsible for strategy

implementation and evaluation


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Typical Board Responsibilities

Review and approve strategic goals and plans Review and approve organizations financial standards and

policies Ensure integrity of organizations financial controls and

reporting system Approve an organizational philosophy Monitor organizational performance and regularly review

performance results Select, evaluate, and compensate top-level managers Develop management succession plans Review and approve capital allocations and expenditures

Monitor relations with shareholders and other keystakeholders

Other responsibilities may be assigned depending on the uniqueculture and needs of the organization


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Board Involvement in theStrategic Management Process

INITIATING

ROLE

APPROVING

ROLE

(Highest level ofboard involvement)

(Lowest level of boardinvolvement)


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Effective StrategicLeadership Involves

Effective

Strategic

Leadership

Exploiting andMaintaining

Core Competencies

Developing

HumanCapital

Creating andSustaining Strong

Organizational Culture

EmphasizingEthical Decisions

and Practices

EstablishingAppropriately

Balanced Controls

Determining

OrganizationalPurpose or Vision


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Strategic Management inTodays World

Three important issues affectingstrategic management in todays

world Globalization

Corporate governance

E-business


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Corporate Governance

Corporate governance is the determination ofthe broad uses to which organizationalresources will be deployed and the resolutionof conflicts among the myriad participants inorganizations

Disclosure Lawlaw designed to protect

investors by improving the accuracy andreliability of corporate disclosures


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Why is StrategicManagement Important?

It gives a role to everyone in anorganization to manage strategically.

It helps the organization perform well.

It helps the organization to effectivelycope with the uncertainties in the

external and internal environment.

It helps to coordinate variousfunctions and activities


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Questions

sm - 1 - overview_of_strategic_mangaement.ppt

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