This document discusses strategic management and the strategic management process. It defines strategic management as consisting of analysis, decisions, and actions to create and sustain competitive advantages. It then outlines the six steps of the strategic management process as identifying the organization's mission and objectives, conducting external and internal analysis including a SWOT analysis, formulating strategies, implementing strategies, and evaluating results. It emphasizes that strategic management directs the organization towards goals, involves stakeholders, and considers both short-term and long-term perspectives.

1. Strategic
Management
Presented By:
Aasim Mushtaq
Sarfraz Khan
Muhammad Imtiaz
Sajid Ali

2. Strategic
Management
Creating Competitive Advantages

3. Definition
Strategic management consists
of the analysis, decisions, and
actions an organization
undertakes in order to create
and sustain competitive
advantages.

4. Strategic Planning:
The process of determining a
company's long-term goals
and then identifying the best
approach for achieving those
goals.

5. Why is strategic management
important?
 Gives everyone a role
 Makes a difference in performance
levels
 Provides systematic approach to
uncertainties
 Coordinates and focuses
employees

6. Strategic Management
Process
Strategic Management Process is
made up of four elements.
Performed in strict order
A continuous process

7. Strategic Management
Process
Situation Analysis
Strategy Formulation
Strategy Implementation
Strategy Evaluation

8. Strategic management
process

9. Strategic Management Process
 Step 1: Identifying the organization's current mission,
objectives, and strategies
 Mission: the firm’s reason for being
 Who we are,
 What we do, and
 Where we are now
 Goals: the foundation for further planning
 Measurable performance targets
 Step 2: Conducting an external analysis
 The environmental scanning of specific and general
environments
 Focuses on identifying opportunities and threats

10. Strategic Management Process
(cont’d)
 Step 3: Conducting an internal analysis
 Assessing organizational resources,
capabilities, activities and culture:
 Strengths (c o re c o m p e te nc ie s ) c re a te va lue fo r
the c us to m e r and strengthen the competitive
position of the firm.
 Weaknesses (things done poorly or not at all) can
place the firm at a competitive disadvantage.
Ste p s 2 a nd 3 c o m bine d a re c a lle d a SWOT
a na ly s is (Stre ng ths , We a kne s s e s ,
O p p o rtunitie s , a nd Thre a ts )

11. Strategic Management Process
(cont’d)
 Step 4: Formulating strategies
 Develop and evaluate strategic
alternatives
 Select appropriate strategies for all levels
in the organization that provide relative
advantage over competitors
 Match organizational strengths to
environmental opportunities
 Correct weaknesses and guard against
threats
11

12. Strategic Management Process
(cont’d)
 Step 5: Implementing strategies
 Implementation: effectively fitting
organizational structure and activities to the
environment
 Effective strategy implementation requires an
organizational structure matched to its
requirements.
 Step 6: Evaluating results
 How effective have strategies been?
 What adjustments, if any, are necessary?
12

13. Levels of strategy
13

14. Key Attributes of Strategic Mgt.
 Directs the organization toward overall
goals and objectives.
 Involves the inclusion of multiple
stakeholders in decision making.
 Needs to incorporate short-term and
long-term perspectives.
 Recognizes tradeoffs between
efficiency and effectiveness.

15. Strategic Management Process

16. Corporate Governance and
Stakeholder Management
 Corporate governance intends to achieve
goals and objectives considering that
stakeholder management is so critical in
the process.
 Symbiosis have to be established

17. Definitions
Corporate Governance
 Corporate governance is a term that
refers broadly to the rules, processes, or
laws by which businesses are operated,
regulated, and controlled. The term can
refer to internal factors defined by the
officers, stockholders or constitution of a
corporation, as well as to external forces
such as consumer groups, clients, and
government regulations.

18. Definitions
Stakeholder Management
 Stakeholder management is the process of
managing the expectation of anyone that has
an interest in a project or will be effected by its
deliverables or outputs.