what is strategy is a course dedicated for those who are introduced to the concept of strategy for the first time Strategy : Consists of competitive moves and business approaches used by managers to run the company 1. What’s the company’s present situation? 2. Where does the company need to go from here? 3. How should it get there? A company’s answer to “how will we get there?” is its strategy SMART Objectives rules: Specific What: What do I want to accomplish? Why: Specific reasons, purpose or benefits of accomplishing the goal. Who: Who is involved? Where: Identify a location. Which: Identify requirements and constraints. Measurable How much? How many? How will I know when it is completed? Achievable& Ambitious How can the goal be accomplished? Relevant & Realistic Does this seem worthwhile? Does this match our goals? Time-bound When? Main milestones due dates? Metrics to formulate strategies

1. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
What Is Strategy and Why Is It Important?
By: Dr. Marwa Mostafa

2. 1-2
What Do We Mean By “Strategy?”
Strategy : Consists of competitive moves and
business approaches used by managers to
run the company
Assessing the present
&
exploring the future

3. 1-3
Strategic Steps

4. 1-4
The Origin of the word “Strategy”
Different words for strategy
What , why, where, Planning, Big picture,
Direction.

5. 1-5
Origin of Tactics
Different words for Tactics
The “how” is something done , Activities,
Tasks, Meeting Actions.

6. 1-6
The Importance of having both
Strategy & Tactics
Hence,

7. 1-7
Too much Strategy or too much Tactics:

8. 1-9
What Do We Mean By “Strategy?”
 Consists of competitive moves and
business approaches used by managers to
run the company
 Management’s “action plan” to
 Grow the business
 Attract and please customers
 Compete successfully
 Conduct operations
 Achieve the targeted levels of
organizational performance

9. 1-10
Strategic vs. Tactical Planning
Strategy Tactics
Time frame Long Term Short Term
Focus Broad Narrow
Key Tasks Defining Market &
Competitive position
Day-to-day
Marketing activity
Information &
Problem solving
Unstructured, external,
Speculative
Structured, internal,
repetitive
Examples

10. 1-11
Example

11. 1-12
Management Function
Management
Functions
Planning
Leading
Organizing
Controlling

12. 1-13
SMART Objectives rule:
S
Specific
What: What do I want to accomplish?
Why: Specific reasons, purpose or
benefits of accomplishing the goal.
Who: Who is involved?
Where: Identify a location.
Which: Identify requirements and
constraints.
S

13. 1-14
SMART Objectives rule:
SM
Measurable
 How much?
 How many?
 How will I know when it is
completed?

14. 1-15
SMART Objectives rule:
A
Achievable&
Ambitious
 How can the goal be
accomplished?

15. 1-16
SMART Objectives rule:
SR
Relevant & Realistic
 Does this seem worthwhile?
 Does this match our goals?

16. 1-17
SMART Objectives rule:
ST
Time-bound
 When?
 Main milestones due dates?

17. 1-18
Metrics to formulate strategies

18. 1-19
Metrics to formulate strategies

19. 1-20
WEAKNESSES (–)
• Lack of marketing system –(No plans-
depends on the word-of-mouth)
• High interest Rates 8.5%.
• Sole product company (High Risk)
• Remarkable amounts of X-stock since
2009.
• Production with ESW TECHNIQUE is
costly than ERW (Aggressive
Competition)
• Poor HSE performance.
• High Average age labors & Chronic health
conditions for about 30%.
• IPIC Website is completely not helping.
STRENGTHS (+)
• No Return Customers (high quality
product)
• High Customer Satisfaction
• Highly qualified and skilled labor
• Flexibility & High response for all
clients’ requirements.
• Free zone commercial benefits.
• Moderate wages expenses compared
with the international level at the same
quality
• Ability to produce new products with
low investment
• Incoming Cash by selling the x stock
THREATS (–)
• Shrinking market (p/l projects) decreased
market demand
• Increasing number of qualified competitors
• Political interference in the implementation of
construction projects .
• High inflation rate
OPPORTUNITIES (+)
• New costumer out of petroleum sector
• Shareholders’ strong Financial
Position
• Unsaturated market of small size pipes
• Booming infrastructure projects in
Egypt
Future Roadmap