This document discusses the evolution of strategic management from the 1950s to the present. It outlines the dominant themes, main issues, concepts and techniques, and implementation approaches during different decades. Some key elements discussed include conducting environmental scans, competitive analysis, developing corporate and business level strategies, and implementing strategic plans. The strategic management process involves strategy formulation, implementation, evaluation, and making corrections.

1. Presented by: Erika S. Nicolas, MBA

2.  Derived from the Greek word strategos
which means “the general’s view” (the
CEO’s view). In business context, the idea
of strategy, therefore, suggests a big
perspective on the firm and its context.
 It is a comprehensive master plan that
states how the corporation will achieve
its mission and objectives

3.  Policy is a broad guideline for decision making
that links the formulation of strategy with its
implementation whereas a strategy is a
comprehensive plan that states how a
corporation will achieve its mission.
 Policies are the means by which annual
objectives will be achieved whereas strategies
are the means by which long term objectives
will be achieved.

4.  Policies are guides to decision making and
address repetitive/recurring situations whereas
strategies are potential actions that require top
management decisions and large amount of the
firm’s resources.
 Policies include guidelines, rules & procedures
established to achieved stated objectives
whereas strategies (business) include,
geographic expansion, diversification,
acquisition, product development, market
penetration, retrenchment, divestiture,
liquidation and joint venture.

5.  It is defined as the art and science of
formulating, implementing, and
evaluating cross-functional decisions that
enable an organization to achieve its
objectives.
 It is synonymous with the term “strategic
planning” which is commonly use in the
business world.

6. The Evolution of Strategic Management
The Evolution of Strategic Management
1950s 1960s Early-mid Late1970s Late 1980s Late 1990s
1970s early 1980s early 1990s early 2000s
DOMINANT Budgetary Corporate Corporate Analysis of Quest for Strategic
THEME planning & planning strategy industry & competitive innovation
control competition advantage The “New
Economy”
MAIN Financial control Planning growth Diversifica- Positioning Competitive Innovation &
ISSUES ion advantage knowledge
Budgeting Forecasting & Portfolio Analysis of Resource Dynamic
CONCEPTS project appraisal investment planning. industry & analysis. sources of
& planning Synergy competition Case advantage
ECHNIQUES market competences Knowledge
share management
cooperation
Emphasis on Rise of Diversifi- Industry/market Restructuring Virtual orga-
MPLEMENT- financial corporate planning cation. selectivity. BPR. nization.
ATION management departments Quest for Active asset Refocusing Alliances
& formal global management Outsourcing Quest for
planning market share critical mass

7. Four Basic Elements

8. assess Strategy formulation Strategy implementation
environmental
factors
Conduct
Identify Develop
competitive
current specific
analysis: carry out maintain
mission strategies:
•strengths strategic strategic
and •corporate
•weakness plans control
strategic •business
•opportunity
goals •functional
•threats
assess
organisational
factors
6

9.  The process of conducting research and
gathering and assimilating external
information.
 It is also called “industry analysis”.

11.  Vision & Mission
 Opportunities & Threats
 Strengths & Weaknesses
 Long Term Objectives
 Alternative Strategies
 Strategy Selection
(for reading)

12. Issues include:
• What new businesses to enter
• What businesses to abandon
• How to allocate resources
• Expand operations or diversify
• Enter international markets
• Merge or form joint venture
• Avoidance of hostile takeover

13. Programs
Strategy Budgets/
Implementation Resource Allocation
Policies and Procedures

14. Action Stage of strategic
management:
• Most difficult stage
• Mobilizing employees and managers
• Interpersonal skills are critical
• Consensus on pursuing goals

15. Final stage of strategic management:
• All strategies subject to future modification
• Success today is no guarantee of success
tomorrow
• Success creates new and different problems
• Complacency leads to demise

16. Strategy Evaluation
Internal Review
External Review
Performance Measurement
Corrective Action

17.  Allows company to be more proactive
 Allows company to initiate and influence
activities
 It promotes unity to the organization
 It helps the employees and managers
understand other’s view and what the
organization is doing and why. Thus,
commitment to the company becomes
stronger.
(require more reading)

18.  More profitable and successful
 Shows significant improvement in sales,
profitability and productivity.
 Exhibit long term financial performance
 Good anticipation of short and long term
consequences.