sm 1 presentation introduction&process
TRANSCRIPT
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STRATEGIC MANAGEMENT
INTRODUCTION AND PROCESS
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CLIENTS
FIRMProducts
Strengths &
Competencies
COMPETITORSProducts
SATISFY
Distinctive Competencies
STRATEGIES
STRATEGIES
Key Success FACTORS
Competitive Advantage
CONCEPTS & DEFINITIONS
Needs
&
Wants
SATISFY
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CONCEPTS & DEFINITIONS
WHAT IS STRATEGIC MANAGEMENT?Definition of Thompson & Strickland,
1987:
Strategic management is the ongoing processwhereby managers establish an organizations
long-term direction, set specific performance
objectives, develop strategies to achieve theseobjectives in the light of all the relevant internaland external circumstances, and undertake to
execute the chosen action plans.
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CONCEPTS & DEFINITIONS
WHAT IS STRATEGIC MANAGEMENT?
Definition of Dess, Lumpkin & Taylor,
2004:Strategic management consists of the analysis,
decisions, and actions an organization
undertakes in order to create and sustaincompetitive advantages.
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CONCEPTS & DEFINITION
Process -comprises a sequence of activities
Competitive advantage - is a distinctivecompetence that allows firms to consistently
outperform their rivals.
Strategy-management's game plan forstrengthening the performance of the
company (how the company will be unique,how the company will build its competitive advantage,how the company will sustain that advantage over time),the result of choices made, on where to play and how to
win, to maximize long-term value.
http://www.superstock.com/stock-photos-images/1830-62542http://www.google.ro/imgres?imgurl=http://blog.fabsuite.com/wp-content/uploads/2011/06/process.jpg&imgrefurl=http://blog.fabsuite.com/2011/06/it%E2%80%99s-all-a-process/&h=312&w=310&sz=22&tbnid=_FrUJsJii35gYM:&tbnh=93&tbnw=92&zoom=1&usg=__NsUAt8BiZqJfWoiuKP-Y1OCXWTo=&docid=l34o21cPll1_9M&hl=ro&sa=X&ei=rTclUYTGDo-Vswa3yIGwDg&sqi=2&ved=0CC0Q9QEwAQ&dur=693 -
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CONCEPTS & DEFINITION
Strength= a resource or competence (ability) of a firmto carry out well an activity.
Core competence= a competence that matters for
the firm's profitability and competitiveness.Key success factorsconsist of the several activities
which are the primary determinants of success in theindustry.
Distinctive competence = a competitively valuablecore competence better than what competitors mightpossess.
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CONCEPTS & DEFINITIONS
Key attributes of strategic management
Directs the organization toward overall goalsand objectives.
Includes multiple stakeholders in decisionmaking
Needs to incorporate short-term and long-termperspectives
Recognizes trade-offs between efficiency andeffectiveness
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CONCEPTS & DEFINITIONS
Thinking strategically means answering threequestions:
1. WHERE ARE WE NOW?2. WHERE DO WE WANT TO GO? (strategic andfinancial outcomes)
3. HOW WILL WE GET THERE?
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CONCEPTS & DEFINITIONS
Strategic management is the study of:
-why some firms outperform others?
-how to compete in order to createcompetitive advantages in themarketplace (unique, valuable, and
sustainable, difficult for competitors tocopy or substitute)
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THE STRATEGIC MANAGEMENT PROCESS
Situation Analysis
Evaluation of the external
environment and the
organization
Strategic Direction
Creation of organizational
vision, mission and strategic
objectives
Strategy Formulation
Development of corporate,
business and functional
strategies
Strategy Implementation,
Follow-up & Evaluation
Design of organizational
structure, control,
informational and
decisional systems, and
performance indicators.
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THE STRATEGIC MANAGEMENT PROCESS
Situation Analysis (external and internal environmentsanalyses)
Direction settings (develop a strategic vision & mission,and setting strategic objectives)
Strategy formulation Strategy implementation and Evaluation of performance,
reviewing new developments, and initiating correctiveadjustments
Strategic Management is an Ongoing Process.