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Basic concept of strategic management


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Basic concept of strategic management

  1. 1. Alvin G. Niere M.B.A.-1 Misamis University
  2. 2. <ul><li>The distinguishing characteristics of strategic management is its emphasis on strategic decision making. As organizations grow larger and more complex, with more uncertain environments , decisions become increasingly complicated and difficult to make. </li></ul>
  3. 3. <ul><li>3 characteristics of strategic decision: </li></ul><ul><li>It deals with a long-run future of an entire organization . </li></ul><ul><li>Rare : Strategic decisions are unusual and typically have no precedent to follow . </li></ul><ul><li>Consequential : Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels. </li></ul>
  4. 4. <ul><li>MODES OF STRATEGIC DECISION MAKING </li></ul><ul><li>Entrepreneurial mode: is made by one powerful individual . focus is on opportunities and growth. </li></ul><ul><li>Adaptive mode: it characterized by reactive solutions than proactive search for new opportunities. </li></ul>
  5. 5. <ul><li>Planning mode: this involves systematic information gathering for situational analysis generating alternate strategies and selection of appropriate strategy this modes includes both reactive and proactive solutions to current problems. </li></ul><ul><li>Logical Incrementalism : it can be viewed as synthesis of the planning , adaptive, and to lesser extend, the entreprenuerial mode, an interactive processes in which the organization probes the future , experiments and learns from series of partial commitments rather than through global formulations of total strategies. </li></ul>
  6. 6. <ul><li>1. Evaluate current performance results in terms of a) return of investment , profitability and so forth b) the current mission , objective , strategies and policies. </li></ul><ul><li>2.Review corporate governance that is , the performance of the firms board of directors and top management. </li></ul>
  7. 7. <ul><li>3.Scan and assess the external environment –to determine the strategic factors that pose opportunities and threats . </li></ul><ul><li>4. Scan and assess the internal corporate environment – to determine the strategic factors that are strenghts ( especially core competencies ) and weaknesses. </li></ul><ul><li>5. Analyze strategic ( SWOT ) factors to a) pinpoint problem areas and b) review and revised the corporate mission and objectives as necessary. </li></ul>
  8. 8. <ul><li>6.Generate , evaluate , and select the best alternative strategy </li></ul><ul><li>7.Implement selected strategies via programs , budgets, and procedures. </li></ul><ul><li>8.Evaluate implemented strategies via feedback systems, and the control of activities to ensure their minimum deviation from plans. </li></ul>
  9. 9. <ul><li>The Strategic Audit: </li></ul><ul><li>It provides a checklist of questions, by area or issue,that enables a systematic analysis to be made of various corporate functions and activities. </li></ul><ul><li>Are examination and evaluation of strategic management processes including measuring corporate performance against the corporate strategy. Whenever a deficiency is noted or performance of an organization is sub-par, the organization may elect to perform a strategic audit. </li></ul>
  10. 10. <ul><li>THANK YOU……………… </li></ul><ul><li>GOD BLESS……………….. </li></ul>