introduction to strategic management

1. Chapter 1:
The Nature of Strategic
Management

2. 2

3. Art & science of formulating,
implementing, and evaluating,
cross-functional decisions that
enable an organization to achieve
its objectives
Definition of Strategic Management

4. Vision & Mission
Strategy Formulation
External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection

5. Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation

6. Strategy Evaluation
Internal Review
External Review
Performance Metrics
Corrective Actions

7. External
Audit
Chapter 3
Internal
Audit
Chapter 4
Long-Term
Objectives
Chapter 5
Generate,
Evaluate,
Select
Strategies
Chapter 6
Implement
Strategies:
Mgmt Issues
Chapter 7
Implement
Strategies:
Marketing,
Fin/Acct,
R&D, CIS
Chapter 8
Measure &
Evaluate
Performance
Chapter 9
Vision
&
Mission
Chapter 2
Comprehensive Strategic Management Model

8. 1. Adapting to change in external trends,
internal capabilities and resources
Aim of strategic management: Achieving Sustained
Competitive Advantage
2. Effectively formulating, implementing &
evaluating strategies

9. • What kind of business should we
become?
• Are we in the right fields?
• Are there new competitors
• What strategies should we pursue?
• How are our customers changing?
Adapting to Change – Key Strategic
Management Questions

10. Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
The answers to those key questions are
usually stated in:

11. Opportunities & Threats (External)
To realize its vision & mission firms must know:
Analysis of Trends:
• Economic
• Social
• Cultural
• Demographic/Environmental
• Political, Legal, Governmental
• Technological
• Competitors

12. Strengths & Weaknesses (Internal)
Typically located in functional areas of the firm
• Management
• Marketing
• Finance/Accounting
• Production/Operations
• Research & Development
• Computer Information Systems

13. Means by which long-term objectives are
achieved
Key Terms
Strategies

14. Benefits of Strategic Management
Financial Benefits
• Improvement in sales
• Improvement in profitability
• Productivity improvement

15. Benefits of Strategic Management
Non-Financial Benefits
• Improved understanding of competitors strategies
• Enhanced awareness of threats
• Reduced resistance to change
• Enhanced problem-prevention capabilities