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1 strategic management overview


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1 strategic management overview

  1. 1. Strategic ManagementStrategic Management OverviewOverview By Alex NathanBy Alex Nathan SserwangaSserwanga
  2. 2. 09/24/1309/24/13 History of Strategic ManagementHistory of Strategic Management From art of warFrom art of war From the Greek word ‘strategeia’ meaning theFrom the Greek word ‘strategeia’ meaning the art or science of being the generalart or science of being the general Originally known as the grand plan whichOriginally known as the grand plan which included the strategic plan and theincluded the strategic plan and the implementation plan of acting on those plansimplementation plan of acting on those plans The grand strategy approach was later adoptedThe grand strategy approach was later adopted into business in form of business strategy whichinto business in form of business strategy which is embedded in strategic managementis embedded in strategic management
  3. 3. 09/24/1309/24/13 Cont-Cont- From the mass production era of the industrialFrom the mass production era of the industrial revolution in light of the 1revolution in light of the 1stst and 2and 2ndnd world warworld war which destroyed what was in place led to morewhich destroyed what was in place led to more concern for long term survival hence need forconcern for long term survival hence need for strategic planning and strategy implementationstrategic planning and strategy implementation The two main reasons for the ever increasingThe two main reasons for the ever increasing need for strategic management are1) the everneed for strategic management are1) the ever changing business environment & 2) the rapidchanging business environment & 2) the rapid increase in size and complexity of companies.increase in size and complexity of companies.
  4. 4. 09/24/1309/24/13 What is strategic Management?What is strategic Management? A process that involvesA process that involves carrying out decisions andcarrying out decisions and actions to develop anactions to develop an appropriate strategyappropriate strategy (means) to achieve an(means) to achieve an organization's objectives.organization's objectives.
  5. 5. 09/24/1309/24/13 Process whereby managersProcess whereby managers establish an organization's longestablish an organization's long term direction, set objectives,term direction, set objectives, develop strategies to achievedevelop strategies to achieve these objectives in light of thethese objectives in light of the internal and externalinternal and external circumstances, and undertake tocircumstances, and undertake to execute the chosen action plans.execute the chosen action plans.
  6. 6. 09/24/1309/24/13 Determination of the basicDetermination of the basic long term goals andlong term goals and objectives of anobjectives of an organization, and adoptionorganization, and adoption of courses of action andof courses of action and allocation of resourcesallocation of resources necessary to carry out thesenecessary to carry out these goalsgoals
  7. 7. 09/24/1309/24/13 Characteristics of strategic managementCharacteristics of strategic management It is not an event but rather aIt is not an event but rather a process.process. Futuristic and long term oriented.Futuristic and long term oriented. Focus on strategy as a central theme.Focus on strategy as a central theme. Focuses on creating competitiveFocuses on creating competitive superiority.superiority. Top management point of view.Top management point of view. Prioritizing resource allocation.Prioritizing resource allocation.
  8. 8. 09/24/1309/24/13 The strategic Management FrameworkThe strategic Management Framework Defining the business of the firmDefining the business of the firm / enterprise/ enterprise Setting objectives &Setting objectives & performance targetsperformance targets Formulating strategiesFormulating strategies Implementing the selectedImplementing the selected strategystrategy Evaluation and controlEvaluation and control
  9. 9. 09/24/1309/24/13 The Strategic Planning ProcessThe Strategic Planning Process This is the process of revising theThis is the process of revising the existence of the enterprise (missionexistence of the enterprise (mission statement), setting the long-term goalsstatement), setting the long-term goals and objectives in view of yourand objectives in view of your environment, formulating the best strategyenvironment, formulating the best strategy of getting where you want to be.of getting where you want to be. It does not include the strategyIt does not include the strategy implementation phase(1/2 way the battleimplementation phase(1/2 way the battle of outwitting your rivals)of outwitting your rivals)
  10. 10. 09/24/1309/24/13 Dimensions of strategyDimensions of strategy A strategy as a planA strategy as a plan: course of action, a: course of action, a guideline to deal with a situationguideline to deal with a situation A strategy as a ployA strategy as a ploy- i.e a maneuver to win- i.e a maneuver to win competitorscompetitors A strategy as a patternA strategy as a pattern i.e. a series ofi.e. a series of consistent actions/activitiesconsistent actions/activities A strategy as a positionA strategy as a position- a means of locating- a means of locating an organization in the environment/marketan organization in the environment/market A strategy as a perspectiveA strategy as a perspective-it unites an-it unites an organization by a common thinking towardsorganization by a common thinking towards achieving common goalsachieving common goals