This document provides an overview of strategic management. It discusses key topics like business environment, strategic analysis, strategic planning, strategy implementation and control. For business environment, it describes objectives of business, environmental forces, analysis, characteristics and components. It also explains Porter's five forces model for competitive analysis. The document aims to provide understanding of strategic management concepts.

1. STRATEGIC
MANAGEMENT
Presented By
Supriya Bade Mundhe
M.Com, CA-Final
CA-INTER GROUP 2 LEVEL SUBJECT

2. CHAPTERS
1. BUSINESS ENVIRONMENT
2. BUSINESS POLICY AND STRATEGIC MANAGEMENT
3. STRATEGIC ANALYSIS
4. STRATEGIC PLANNING
5. FORMULATION OF FUNCTIONAL STRATEGY
6. STRATEGY IMPLEMENTATION AND CONTROL
7. REACHING STRATEGIC EDGE

3. 1. BUSINESS ENVIRONMENT
OBJECTIVES OF BUSINESS (PEGSS)
 PROFITABILITY
 EFFICIENCY
 GROWTH
 STABILITY
 SURVIVAL

4. ENVIRONMENTAL FORCES
INPUTS PROCESSING OUTPUTS
HUMAN TRANSFORMATION PRODUCT
PHYSICAL OF INPUTS TO OUTPUTS SERVICES
FINANCE
TECHNOLOGY

5. ENVIRONMENTAL ANALYSIS
It has THREE basic goals:-
1. It should provide an understanding of current and potential
changes taking place in the environment.
2. It should provide inputs for strategic decision making.
3. It should facilitate and foster strategic thinking in organisations
typically a rich source of ideas and understanding of the context
within which a firm operates.

6. CHARACTERISTICS OF BUSINESS ENVIRONMENT
(C-MID)
• COMPLEX
• MULTI-FACETED
• IT HAS FAR REACHING IMPACT
• DYNAMIC

7. COMPONENTS OF BUSINESS ENVIRONMENT
INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT
STRENGTH OPPORTUNITIY
WEAKNESSES THREATS
ENVIRONMENTAL INFLUENCES (SWOT)

8. RELATIONSHIP BETWEEN ORG & ITS ENVIRONMENT
• EXCHANGE OF RESOURCES
• EXCHANGE OF INFORMATION
• EXCHANGE OF INFLUENCE AND POWER

9. -MAJOR COMPONENTS OF BUSINESS ENVIRONMENT
MACRO ENVIRONMENT MICRO ENVIRONMENT
DEMOGRAPHIC CONSUMER
ECONOMIC COMPETITORS
GOVERNMENT ORGANISATION
LEGAL MARKET
POLITICAL SUPPLIERS
CULTURAL INTERMEDIARIES
TECHNOLOGICAL
GLOBAL

10. ENVIRONMENTAL SCANNING
• It is the process of gathering information regarding company’s
environment analysing it and forecasting the impact of all predictable
environmental changes.

11. PESTLE ANALYSIS
• POLITICAL
• ECONOMIC
• SOCIAL
• TECHNOLOGICAL
• LEGAL
• ENVIRONMENTAL

12. STRATEGIC RESPONSES TO THE ENVIRONMENT
Following approaches may be noted in this regard,
• Least resistance
• Proceed with caution
• Dynamic response

13. COMPETITIVE ENVIRONMENT
Following factors or questions considered for understanding
Competitive Environment.
• Competitors
• Products & Services
• Market Shares
• Financial Positions
• Cost & Price advantage
• Plan
• Potential Customers.

14. PORTER’S FIVE FORCES MODEL-COMPETITIVE ANALYSIS
(SCEPS)
• Bargaining power of Suppliers
• Bargaining Power of Customers
• Threats of new Entrants
• Rivalry among current Players
• Threats from Substitutes