Introduction
• A strategyis a set of related actions that
managers take to increase their
company performance
• Management is the process of designing
and maintaining an environment in
which individuals, working together in
groups, efficiently accomplish selected
aims.
6.
Strategic
Management
Strategic
Planning
A process ofanalyzing, formulating,
implementing and evaluating some set of
actions taken or to be taken for the
achievement of predetermined organizational
goals and objectives
A process which describes how a firm will
adapt to take advantages of opportunities in
its constantly changing environment, in order
to maintain a strategic fit between the firm’s
goals and capabilities and these market
opportunities
STRATEGIC
7.
BASIC FRAMEWORK
The firm
Goals& values
Resources &
Capabilities
Structures &
System
External
Environment
Competitors
Customers
Suppliers
Strategy
8.
Levels of StrategicManagement
Corporate Level Manager
Business Level Manager
Functional Level
Manager
9.
Corporate
Level
Oversee development of
strategiesfor whole
organization
Responsible for business
unit that provides
product/service to particular
market
Supervise particular
function/operation
Business
Level
Functional
Level
Levels of Strategic Management
Strategic Management Process
Selectthe
corporate mission
and major
corporate goals
Analyize the
organization’s external
competitive
environment to
identify organization’s
opportunities and
threats
Analyize the organization’s
internal operating
environment to identify
orgaanization’s strengths
and weakness
14.
Strategic Management Process
Selectstrategies that build on
the organization’s strengths
and correct its weaknesses in
order to take advantage of
ecternal opportunities and
counter external threats
Implement the
strategy
16.
Vision
The highest aspirations
andideals of a person or
organization, what a firm
wants to be
An organization’s mission
is an overall goal of the
organization that provides
a sense of direction and
guide to decision making
for all levels of
management
A desired future state or
objective that a
company attempts to
realize.
Mission Goals
Vision, Mission, Goals
17.
Mission Statement
● Targetcustomers and markets
● Principal products and services
● Geographic domain
● Core technologies
● Concern for survival, growth
and maturity
● Organizational self concept
● Desired public image
● Values and guiding standard
● Major goals and objectives
Mission statement should include the following components:
S.M.A.R.T
a specific andwell-
defined goal is focused
on a task that moves
the company forward
Specific
a goal has to have
a ruler or
scoreboard
attached to it.
Measurable
Don't take the challenging
characteristic (above) too
far. Make sure you can
actually achieve what you're
setting out to do..
Attainable
Your goals should
be realistic and
suited to your
present capabilities.
Realistic
Timeless
Goals need to
come with
deadlines, due
dates
21.
EXTERNAL ANALYSIS
The purposeof the external analysis is to
identify strategic opportunities and threats
within the organization’s operating
environment that will affect how it pursue
its mission
22.
INTERNAL ANALYSIS
The goalof a SWOT analysis :
Create, affirm, or fine-tune a company-specific
business model
Design a model that will best align, fit or match
a company’s resources and capabilities to the
demands of the environment in which it
operates
23.
Functional – level
strategies
Directedat improving the
effectiveness of operations
within a company
The way a company position
itself in the marketplace to
gain a competitive advatage
The different position
strategies that can be used in
different industry settings
Manufacturing, marketing,
materials management,
product development, and
customer service
Business – level
strategies
SWOT STRATEGIES
24.
Global strategies
Address howto expand
operations outside the
home country
How should a company enter
and increase its presence to
gain a competitive edge
How to grow and posper in a
world where competitive
advantage is determined at a
global level
Business – level
strategies
SWOT STRATEGIES
Address what business
should the company be in
to maximize profitability
25.
Strategy
implementation
involves taking
action atthe
functional,
business, and
corporate levels to
execute a strategic
plan
Putting quality
improvement
programs into place
Changing the
way a product is
designed
Positioning the
product
differently in the
marketplace
Offering different
versions of thhe
product to different
consumers
Strategy Implementation
● Often carrygreater risk, cost, and profit
potential
● Greater need for flexibility
● Longer time horizons
● Choice of businesses, dividend policies,
sources of long-term financing, and
priorities for growth
Corporate Level
Managers
29.
● Help bridgedecisions at the corporate and
functional levels
● Less costly, risky, and potentially profitable
than corporate-level decisions
● More costly, risky, and potentially
profitable than functional-level decisions
● Include decisions on plant location,
marketing segmentation, and distribution
Business Level
Managers
30.
● Implement theoverall strategy formulated
at the corporate and business levels
● Involve action-oriented operational issues
● Relatively short range and low risk
● Modest costs: depend upon available
resources
● Relatively concrete and quantifiable
Functional Level
Managers