Anda di halaman 1dari 16

Chapter-1

Strategic Management Basic


Model
Text Books and reference books
• Azhar Kazmi , Fred R. David, strategic management, 16th
edition, Prentice Hall, New York, 1997,Global Strategic
Management BY Philippe Lasserre-- PALGRAVE MACMILLAN,
Strategic management and Business Policy-13th edition
Towards Global sustainability by Thomas L. Wheeler and
J.David Hunger
Related articles
• https://www.managementstudyguide.com/strategic-
management-articles.htm-
• https://www.tandfonline.com/doi/full/10.1080/10967494.2018.14
27161
• https://www.managementstudyguide.com/strategy-formulation-
process.htm---
• www.joams.com/uploadfile/2013/1225/20131225044203610.pdf
• https://pdfs.semanticscholar.org/c1b6/642285d21137063b3aa7c
0bf39644ac174fc.pdf
Videos on the
• https://www.youtube.com/watch?v=hZLMv5aexto-- Principles of
marketing strategy
https://www.researchgate.net/.../263231472_A_Case_Study_of_I
ssues_of_Strategy_Imp
www.mondaq.com/uk/x/207790/Strategy+Six+Steps--
https://www.youtube.com/watch?v=ja2BXd3cP5o
https://www.youtube.com/watch?v=s1nDn7Ph1R4
Introduction to Strategic Management

•“An organization without strategy is


like a ship without rudder” Peter
Drucker
Definition
“Strategic management is defined as a set of decisions and
actions that result in formulation and implementation of plans to
achieve the company’s objectives. ” (Pearce & Robbins)
“Strategic Management refers to defining the organization‘s
mission, formulating strategies, and guiding long-term
organizational activities consistent with internal & external
conditions .” (Holt, 1993).
“Strategic management is the analysis, decisions and actions an
organization undertakes in order to create and sustain
competitive advantage.” (Dess & Lumpkin)
Strategic Management
Strategic Management
Benefits and competence of strategic
management
• Strategic thinking and turning it into practice are skills that are used by
companies, institutions, groups, and individuals to get over challenges they
face. Using strategic management and competence, actions and available
resources can be targeted directly to where they are most useful for beating
the identified challenges. A strategist knows what to do, for what reason,
and how. Strategists always strive to focus their strength and resources on
the 20 % of the matter at hand that produces 80% of the outcome.
Strategists also test things to gain deeper knowledge and certainty when
necessary before fully harnessing the resources for the chosen actions.
• With companies and institutions, excellent strategies implemented in
practice are shown as larger cover, increased demand, minimized wasting of
resources, motivated personnel who are proud of their organization, and
increased customer satisfaction.
Phases of Strategic Management
• Environmental Scanning
• Strategy Formulation (strategy
planning)
• Strategy Implementations
• Strategy evaluation and Control
Strategy Formulation
• Strategy Formulation- is the process of planning strategies. it includes;
• Developing organizational guiding philosophy (values and beliefs),
Vision (a forward – looking statement of what it wants to be in the
future) and mission (its current purpose and scope of operation).
• Identifying external opportunities and threats and determining internal
strengths and weaknesses.
• Establishing long term objectives
Strategy Implementation-
• Strategy formulation results in a plan of action for the company and its various levels,
whereas strategy implementation represents a pattern of decisions and actions that are
intended to carry out the plan. Mostly requires a firm to develop annual objectives, devise
policies, motivate employees and allocate resources. Strategy implementation involves
managing stakeholder relationships and organizational resources in a manner that moves the
business toward the successful execution of its strategies, consistent with its strategic direction.
It includes;
• Preparing budgets
• Linking employees compensation to organizational performance
• Creating strategy supportive culture
• Developing effective organizational structure
• It is often considered to be most difficult stage of strategic management. It requires
personal discipline, commitment and sacrifice. Strategy formulated but not implemented
serve no useful purpose.
Strategy Evaluation
• Strategy Evaluation:- It is the primary means for obtaining information whether a
given strategy is successful or not. Three fundamental strategy-evaluation
activities are:
• Performance standards must be evaluated/accomplished
• Monitoring progress (organizational goal accomplishment)- comparing actual
performance to the standard
• Initiate corrective actions-either on the standard or actual performance.

N.B. Strategic management is not a clean, step by step process. It is not linear, but
a messy, iterative process that requires hard work and dedication from most people
in the organization to move it toward the future. It represents a new focus for the
organization; a focus on a compelling vision of the future.

Anda mungkin juga menyukai