Strategic management involves developing a strategic fit between an organization's objectives and resources and changing market opportunities. It includes analyzing internal/external environments, formulating strategy, implementation, evaluation, and control. Critical tasks include formulating mission/goals, internal/external analysis, identifying desirable options, developing objectives/strategies, implementation, and evaluation. Strategic decisions require top management, large resources, long-term focus, and consideration of external environment. SWOT analysis assesses internal capabilities versus external opportunities and threats. Vision and mission statements distinguish an organization and identify its scope and operations.

1. Strategic Management
P Sivakumar

2. Strategic Planning
…is the managerial process of developing
and maintaining a strategic fit between
the organization's objectives and
resources and its changing market
opportunities.
Objectives Strategic Fit Resources
Changing Environment

3. The Role of Strategy
Corporate Strategy:
Mission & •Corporate Operating
Objectives •Business Plans
•Functional

4. Introduction
• It is a set of decisions and actions that result in the
formulation and implementation of plans designed
to achieve a company’s objectives
• It includes an analysis of the environment(int&
ext),formulation of strategy, implementation,
evaluation and control
• Study of external opportunities & threats to
company’s strength and weakness

5. CRITICAL TASKS
• Formulate firm’s mission,purpose,goals
• Internal analysis – conditions & capabilities
• Assess the external environment –
competitive & contextual factors
• Firm’s resources Vs External Environment
• Identify most desirable option in light of
firm’s mission

6. CRITICAL TASKS
• Select a set of long term objectives & grand
strategies that will achieve the most desirable
options
• Develop annual objectives & short term
strategies
• Implementation of short term strategies
• Evaluate the success of the strategic process
as an input for future decision making

7. Dimensions of strategic decisions
• It require top management decisions
• It require large amount of the company’s
resources
• It often affect the company’s long term
prosperity
• Strategic issues are future oriented
• It have multifunctional or multibusiness
consequences
• It require to consider the external
environment

9. SWOT Analysis
Framework for focusing attention on the fact that an organizational
growth opportunity results from…
a good fit between an organization’s INTERNAL CAPABILITIES
(Strengths & Weaknesses)
and
its EXTERNAL ENVIRONMENT (Opportunities & Threats)
9

10. F
F
E
E
E
E
D
D
B
B
A
A
C
C
K
K

11. The Company’s Vision
• Vision is the bold view of what the company can
become.
• Vision binds the company together with a
common purpose and focuses on the future.
• Vision is what sets the company apart and
differentiates it from its competitors.
• It answers the question: “What business are we
in and why?”
• It is a reflection of the purpose, core values, and
unique ideology of the firm.

12. STRATEGIC VISION & MISSION
MISSION STATEMENTS
ENDURING STATEMENTS OF PURPOSE THAT DISTINGUISH ONE
ORGANIZATION FROM OTHER SIMILAR FIRMS.
IDENTIFY THE SCOPE OF A FIRM’S OPERATIONS IN PRODUCT AND MARKET
TERMS
“MISSION” tends to be concerned with the present…
“WHAT IS OUR BUSINESS?”
“VISION” focuses on our future…
“WHAT KIND OF BUSINESS ARE WE TRYING TO BECOME?”
“WHAT SHOULD OUR BUSINESS BE IN THE FUTURE?”
Questions to Address:
1—WHAT NEEDS ARE WE TRYING TO SATISFY?
2—WHO DO WE INTEND TO SERVE?
3—HOW WILL WE MEET THESE NEEDS?
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13. appendix
• contextual factors: top management
characteristics, the decision-specific
characteristics, the environmental
determinism and the firm characteristics, as
well as the key research efforts gathered
together under each perspective.