This document discusses strategic management. It covers the benefits of strategic management which include financial and non-financial benefits. It also discusses the strategic planning process, including environmental scanning, strategy formulation, implementation, and evaluation and control. Key aspects of developing a mission statement and evaluating corporate strategy are also outlined. Several tools for organizational analysis and techniques for internal appraisal are listed as well.

1. UNIT-1 SM
Q1. BENEFITS OF STRATEGICMANAGEMENT
1. Financial benefits:
2. Non-financial benefits:
Increased employee productivity
Improved understandingof competitors'strategies
Greaterawareness of external threats
Understandingof performance rewardrelationships
Betterproblem-avoidance
Lesserresistance tochange
NEES OF STRATEGICMANAGEMENT
1. IncreasingRate of Changes:
2. HigherMotivation of Employees:
3. HigherMotivation of Employees:
4. HigherMotivation of Employees:
5. Miscellaneous:
STRATEGIC PLANNINGPROCESS/ELEMENTSOFSTRATEGIC MANAGEMENT PROCESS
The processof strategicmanagementfocusesondevelopingthe strategyof the organization.Itis
distinctprocesswhichthe managementuses selectstrategiesthatwithhelpthe organizationin
improvingitsperformance.Itisa neverendingprocess.
1. Environmental scanning:
I. External environment:
II. Internal environment:
2. Strategyformulation:
I. Visionof the organisation:
II. Missionof the organisation:
III. Objectives:
IV. Strategies:
V. Policies:
3. Strategy implementation:
I. Programmes:
II. Budget:
III. Procedures:
4. Evaluationandcontrol:
Q2. CHARACTERISTICSOFMISSION STATEMENT
1. Feasibility:
2. Precise:
3. Clarity:
4. Encouraging:

2. 5. Uniqueness:
6. Indicationof strategy:
7. Shouldspecifythe waystoachieve objectives:
MISSION STATEMENT FORMULATED
The missionisthe ultimate purpose forwhythe organizationexists. Essential componentsof agood
missionstatementinclude:
 Brief andeasilyunderstoodbyeveryone.
 What - goodsand services(beyondthe basics)
 For Whom- marketsegmentation(geographic,sociological,financial,ethnically)
 How - marketstrategy,distributionstrategy.
 Presentandfuture possibilities.
 Why- basic reasonthe organizationexists.
 Distinctive competency.
 DrivingForces.
Driving Forces
Rank in orderof importance (1 to 9)
 _____ Productsand/orservicesoffered
 _____ Market served
 _____ Technology
 _____ Low-costcapability
 _____ Operationscapability
 _____ Methodof distribution&sale
 _____ Use of resources
 _____ Profit(returnonresources)
 _____ Other
Q.3 STRATEGIC MANAGEMENT
Strategicmanagementisconcernedwithmakingdecisionsaboutorganisationfuture directionand
implementingthose decisions.Strategicmanagementconcernedwiththe formulationof vision,
objectives,strategyformulation, strategicimplementationandmakingchangesinthe strategic
intentaccordingto the changingrequirementsof the organisation.
PROCESSOF STRATEGIC DECISION MAKING
1. Planning:
I. Decisionparameters:
II. Decisioncriteria:
III. Decisionconditionality:
IV. Decisionalternatives:
V. Technical model:
VI. Technological model:
VII. Correctionfactor:
2. Programmingsystem:
3. Performingmodalities:
4. Profitabilityfactor:
5. Developmentgrowth:

3. APPROCAHESOFSTRATEGIC DECISION MAKING
1. Intuitive anticipatoryapproach:
2. Formal structuredapproach:
3. Adaptive approach:
4. Incremental approach:
5. Entrepreneurialopportunistic:
6. Political behaviourapproach:
Q4. EVALUATION OF CORPORATESTRATEGY/STRATEGIC EVALUATION ANDCONTROL
Strategicevaluationcanbe definedasa processof measuringif the implementedstrategy has
successfullymetthe objectivesof the organisationandwhatkindof remedial actionsneedtobe
takenby the organisationtoaddressanyshortcomings.
OBJECTIVES/NEEDOFSTRATEGIC EVALUATION
1. Performance measurement:
2. Helpsinanalysis:
3. Corrective actions:
4. Reassessinggoals:
5. Alertsfromthreat:
PROCESSOF STRATEGIC EVALUATION ANDCONTROL
1. Determine whattocontrol:
2. Setcontrol standards:
3. Measure performance:
4. Compare performance tostandard:
5. Determine the reasonsforthe deviations:
6. Take corrective action:
Q.5 IMPORTANCEOF STRATEGIC MANAGEMENT
1. Fulfillingthe responsibilitiesof the boardmembers:
2. Helpsinassessingthe objectives:
3. Developsadecisionmakingframework:
4. Helpsinmeasuringthe progress:
5. Providesanorganisational viewpoint:
6. Improvesstability:
7. Stronglaboursupply:
8. Strengthensbrandmanagement:
9. IdentifiesSWOT:
Q6. SIGNIFICANCEOFENVIRONMENT/EXTERNALANALYSIS
1. Predictsthe opportunitiesandthreats:
2. Warns againstthreats:
3. Recognisesenvironmentalrisks:

4. 4. Identifiesopportunities:
5. Provides more time forroutine activities:
6. Identifiesnew growthavenues:
7. Continuouslearning:
8. Buildsthe image of organisation:
9. Analysesthe competition:
UNIT-2
Q1. TOOLS OF ORGANISATIONALANALYSIS/TECHNIQUESUSEDFOR INTERNALAPPRAISAL
1. Value chainanalysis:
2. Quantitative analysis:
3. Qualitative analysis:
4. Benchmarking
5. Balancedscorecard:
UNIT-3