the understanding of strategic management in the business.

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STRATEGIC MANAGEMENT
 Mr N.S. MAGUBANE
– ( +2771 425 234
– Mail to: 201223861@student.uj.ac.za

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.
Strategic Management
process

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Strategic management
The concept : Enterprise
or business

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Strategic management
Top management promise:
Value proposition to
satisfy a need

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THE TIME LINE OF
STRATEGY
 Present
 Future
 Past

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Strategic thinking
 The fundamental question:
– In what way would top management
make decisions in such a rapid
changing environment in order for
it to survive and even more to show
growth?

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ASPECTS OF STRATEGIC
MANAGEMENT
 Inputs - analysis
 Actions – formulation
 Actions – implementation
 Contemporary issues

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Strategic Management -
concepts
 Strategic management
 Strategic thinking
 Strategic decisions
 Hypercompetition
 The strategic business game
 The fundamental question of strategy
 The core areas of strategy
 Process, content and context of strategy
 The role of change

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Strategic management
 Decision-making - present
 That set of managerial decisions
and actions that determine the
long-run performance of an
organisation (company)
 Deliver the promise to the
customer

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Strategic thinking

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Strategic thinking
 To learn to think beyond the
parameters of conventional wisdom
and develop approaches to compete
successfully in a hostile
environment

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Strategic thinking
 Vision
 Corporate (organisational) culture
 Foresight
 Leadership
 Instituting ethics and values
 Core values of business

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Core values
 Have a commitment for service
 Demonstrate genuine caring for
people
 Provide ethical treatment for all
people
 Provide good value to all members
 Be ever-changing and dynamic

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Strategic thinking
 The challenge of strategic
management within a changing
environment
 The new competitive landscape
– Technology
– Globalisation

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Technology and technological
changes
The new competitive landscape
•Rapid technological changes
•Rapid technology diffusion
•Dramatic changes in
information technologies
•Increasing importance of
knowledge
The competitive landscape
The global economy
•People, goods, services, and
ideas move freely across
geographical borders
•Significant opportunities
emerge in multiple global
markets
•Markets and industries
become more internationalized

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Strategic decisions

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Strategic decisions
- elements
Context
Content
Process

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Strategic decisions -
elements
 Context - environment
 Content - main actions of strategy
 Process - how actions interact -
role of change

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The relationship between:
• strategic thinking
• strategic management
• strategic planning
• strategy

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The relationship between strategic
management, strategic planning and
strategy
Strategic management/
Strategic thinking
Strategic planning
Strategy
Comprehensive master plan
“How” the organisation wants
to fulfill its goals and
objectives

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Core areas of Strategy

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Core areas of Strategy
Strategic
Analysis
Strategy
implementationStrategic
development

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The models of strategy
 Traditional - prescriptive
approach
 Continuous - emergent approach

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Prescriptive approach
Strategic
Analysis
•Environment
•Resources
•Vision,mission
and objectives
Strategic
development
•Options
•Selection
•Route forward
•Consider strategy
Strategy
implementation

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Prescriptive approach
 Focus on:
• profit-maximising, competition based
• resource-based
• game-based
• socio-cultural environment

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Emergent Approach
Planned (or
Intended)
Strategy
Actual
Strategy
Adaptive
Reactions to
changing
circumstances

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The emergent approach
Strategic
Analysis
•Environment
•Resources
•Vision,mission
and objectives
Strategic
development
•Options
•Selection
•Route forward
•Consider strategy
Strategy
implementation

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Emergent approach
 Focus on:
 survival-based
 uncertainty-based
 human resource-based
 continuous approach

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Strategic management model
Analysis of the
external environment
Long-term
goals
Objectives
Strategic plan
Legend
Major impact
Minor impact
Desired
Possible
Enterprise
mission
Company
profile
Analyse and develop

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Strategic management model
Feedback
Analysis of the
external environment
Long-term
goals
Objectives Operating
strategies
Strategic plan
Legend
Major impact
Minor impact
Evaluation and
control
Institutionalization
of strategy
Policies
Feedback
Desired
Possible
Enterprise
mission
Company
profile
Analyse, develop and implement

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The five tasks of strategic
management

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The five tasks of strategic
management
Task 1 Task 2 Task 3 Task 4 Task 5
Developing a
strategic
vision and
business
mission
Revise as
needed
Setting
objectives
Crafting a
strategy to
achieve the
objectives
Implementing
and executing
the strategy
Evaluation
and control
Revise as
needed
Improve /
change as
needed
Improve /
change as
needed
Recycle to
tasks 1, 2, 3 or
4 as needed
Feedback

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Who performs the five tasks
of strategic management?

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Who performs the five tasks
of strategic management?
Every manager has a strategy-
making, strategy-implementation
role
It is wrong to view strategic
management as a solely a senior
executive responsibility

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Hierarchy of strategic
management levels
Board of directors
Chief executive
officer
General Manager
Finance
Manager Shoe
business
Human resource
manager
Manager Steel
business
Marketing
manager
General Manager
Human resources
Financial
manager
Corporate
level
Divisional
level
Functional
level
Manager Clothing
business

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Shortcomings of strategic
management process
 Fail to develop a long-term
planning philosophy
 All levels of management not
involved
 Rely on intuitive decision-making
 Unrealistic expectations
 Inflexible in a too rapidly
changing environmnt

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Driving forces of strategy

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Driving forces of strategy
 Vision – value creation
 Resources (EP) – locked in
 Creativity
 Value systems
 Assumptions (change)
 Risk appetite
 Sustainability

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Organisational Strategist
 Decision-making on
different aspects
 Inspiring others
 Bold innovative ideas

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Thank you