Definition Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
Strategic management : A processAnalysisDecision-makingAction taking
Strategic Management : Creating Competitive Advantage The essence of strategic management is the study of why some firms outperform others Aims to answer the two fundamental questions:1. How should we compete in order to create competitive advantages in the marketplace? 2. How can we create competitive advantages in the marketplace that are not only unique and valuable but also difficult for competitors to copy or substitute?
Key Attributes of Strategic Mgt. Directs the organization toward overall goals and objectives. Involves the inclusion of multiple stakeholders in decision making. Needs to incorporate short-term and long- term perspectives. Recognizes tradeoffs between efficiency and effectiveness.
Strategic Management Process Strategic Management Process is made up of four elements. Performed in strict order A continuous process
Strategic Management Process Situation Analysis Environmental Scanning Internal Environment External Environment Human resource interaction Customer Within the business organization Competitors Suppliers Creditors
Strategic Management Process Strategy Formulation Designing and developing the company strategy. Organizational Levels of Strategy formulation Operational Strategies Competitive Strategies Corporate Strategies
Strategic Management Process Strategy Implementation Putting the strategy to practice Includes developing steps, methods, and procedures to execute the strategy.
Strategic Management Process Strategy Evaluation Makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives.
Corporate Governance and Stakeholder Management Corporate governance intends to achieve goals and objectives considering that stakeholder management is so critical in the process. Symbiosis have to be established
Definitions Corporate Governance Corporate governance is a term that refers broadly to the rules, processes, or laws by How do the company is being which businesses are operated, regulated, and controlled. The term can refer to internal operated factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.
Definitions Stakeholder Management Stakeholder management is the process of managing the expectation of anyone that has an interest in a project or will be effected by its deliverables or outputs.