Strategic management involves establishing objectives, defining the company's mission, formulating strategies, implementing plans, and evaluating performance. It has five components and follows a process of environmental scanning, strategy formulation, implementation, and evaluation. In a knowledge-based economy, strategic management is important because it increases employee alertness, efficiency, and motivation; reduces costs; and helps companies adapt to changes.

1. Md. Sheikh
Shohan
Sec: A
ID: 16221063
Finance &
Banking
Manage
ment
Final
Presentat
ion

2. The Importance of the Strategic Management
Process in the Knowledge-Based Economy.
Outlin
e
Definition of
strategic
management
Strategic
management
process
Five basic
components of
strategic
management
It’s importance
in knowledge
based
economy

3. What is Strategic Management?
Strategic management
involves the formulation
and implementation of
the major goals and
initiatives taken by a
company's top
management on behalf
of owners, based on
consideration of
resources and an
assessment of the
internal and external
environments in which

4. Five basic components of strategic
management
 It is usually considered that strategic management has five
critical components :
Establishing strategic objectives and performance targets.
Defining the business and establishing a strategic mission
Formulating a strategy to achieve the strategic objectives
and targeted results.
Implementing and executing the chosen strategic plan
Evaluating the performance and reforming the strategic
plan.

5. Strategic management process
Strategy
Formulation
Strategy
Implementatio
n
Strategy
Evaluation
Environmenta
l Scanning

6. Environmentalscanning
• Environmental scanning refers to possession
and utilization of information about occasions,
patterns, trends, and relationships within an
organization’s internal and external
environment.
• It helps the managers to decide the future path
of the organization.
• Internal analysis of the environment is the first
step of environment scanning.

7. Formulation Strategy Steps
Setting Organizations’ objectives
Evaluating the Organizational Environment
Setting Quantitative Targets
Aiming in context with the divisional plans
Performance Analysis
Choice of Strategy

8. Implementation of strategy
1. Align your
initiatives & Align
budgets and
performance
3. Engaging Staff
2. Structure follows
strategy
4. Monitor and Adapt

9. Strategy
Evaluati
on
Fixing benchmark of
performance
Measurement of performance
Analyzing Variance
Taking Corrective Action

10. Importance of Strategic management in
knowledge based economy
 Alertness in employees.
 Increase the efficiency of the employees.
 Increase the profitability and productivity.
 Motivation to group activity
 Reduction in cost capital.
 Reduction in fixed and flexible expense.
 Acceptance in organizational change.
 Increase in trading on equity.

11. Thank
you