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Introduction Of Strategic Management


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this presentation is on Strategic management.
It covers following topics in detail -
Introduction of strategic management
Definition of strategic management
Mintzberg’s Views of Strategy
Features of strategic management
Role of strategic management
Process of strategic management
Need of Strategic management
Benefits of Strategic management
Limitations of strategic management
Mission & Vision

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Introduction Of Strategic Management

  1. 1. Introduction of Strategic Management
  2. 2.  Introduction  Definition  Mintzberg’s Views of Strategy  Features of strategic management  Role of strategic management  Process of strategic management  Need of Strategic management  Benefits of Strategic management  Limitations of strategic management  Mission & Vision
  3. 3.  Strategy comes from Greek word “Strategos” which means a plan to compete with enemy (in army). In Hindi, it called “Rananeeti”.  Strategy means that a plan of action designed to achieve a long-term overall goals.  So, the Strategic management meant that making an action plan to achieve the organisational goals effectively and efficiently.  We can say that it a game plan of any organisation to compete with competitors and stay for long time in market on top position.  It is an integrated system, which focuses on all departments of an organisation(marketing, finance, production, R&D and so on..) to achieve the organisational goals successfully.
  4. 4.  It tells about 5P’s for strategy- These are:- o Plan – consciously intended course of action. (Strategy is developed in advance and with purpose) o Ploy – A way to outsmart the competitor. (e.g.:- buy patents so that competitor cannot launch a rival product.) o Pattern – consistency in behavior. (what was successful in past can lead to successful in the future) o Position – location in environment. (how the organisation relates to its competitive environment and what it can do to make its product unique in the marketplace.) o Perspective – way of perceiving the world. (environment is dynamic)
  5. 5.  It is pervasive, integrated and coordinated management process.  It is basically a top management function.  It is mostly related to external environment.  It is long term in nature.  It provides overall frame work for guiding enterprise thinking and action.  It is complex process.  It is a continuous process.  It involves both conceptual and analytical thought process.
  6. 6.  It gives direction to business.  It helps an organization in achieving its goals in an efficient and effective manner.  It helps in grasping every opportunity that is available in the market.  It helps in getting rid of the threats or else neutralizes them.  It helps in forecasting.  It helps in maintain past profits trends and helps as well in increasing the future profits.  It helps and assists in coping with uncertain environments.
  7. 7. Strategy formulation Strategy implementation Strategy evaluation
  8. 8.  Strategy formulation includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue.  Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. Strategy implementation often is called the “action stage” of strategic management.  Strategy evaluationis the final stage in strategic management. Here, management compare the actual performance with standard performance to find out deviation (for finding that the strategy made is working properly or not.)
  9. 9.  It needed for grasping opportunities.  It serves as a road map to the organization.  It helps in building competitive advantages .  It needed due to rapidly changing business environment.  It helps in knowing true actual position of business.  It promotes effective resource allocation among the business units.  It helps in systematizing an organizations strategic decisions and actions.  For new invention, discoveries and enhancement of technologies .  And so on……..
  10. 10.  It serves as a road map for an organization.  It helps in environment scanning.  It creates a frame work for internal communication among the staff.  It unifies the organization.  Strategic planning ensures a rational allocation of resources.  It helps in increase of organizational effectiveness.  It helps in providing satisfaction to the personnel of the organization.  It helps in evaluating results.
  11. 11.  It is complex process.  It requires a high level of imagination, analytical ability, courage, foresight.  It is a costly exercise.  It involves a lot of time.  Strategic plans are based on assumptions.  Due to poor information system and lack of awareness, managers cannot judge the company’s position correctly.  In today’s fast changing environment, managers find it difficult to do any long range planning.  Some other reasons are - Poor communication system , Failure to manage change , Failure to coordinate, Over estimation of resource competence , Failure to obtain employee commitment, Failure to obtain senior management commitment , Failure to understand the customer.
  12. 12. S. no. Basis Mission Vision 1. Meaning It describes the company’s objective and its approach to reach these objectives. It depicts the company’s aspiration for future position of company. 2. What is it? Cause Effect 3. Talks about Present Future 4. Period Short-term Long-term 5. Purpose To inform To inspire 6. Example Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets they serve. General Motors’ vision is to be the world leader in transportation products and related services. Missionis made by companykeeping visionin mind.