introductidefination....7smodel

1. RRaavvlleeeenn KKaauurr
((MM..CCoomm))

2. Strategic Management
Meaning

Strategic management is the set of managerial decisions or
actions that determines the long-run performance of a
enterprise.
It is directed by top management to determine the aims and
goals of organization and ensure a range of decisions which
allow for the achievement of those aims and goals in long
term.It mainly relates to two things deciding the
strategies and implement them by using
companies resources for survival of organization.

3. Strategic Management
Defination


4. Features of
Strategic Management


5. Strategic Management
process

Strategic management is the process of relating an organization
as a sub system with its environment. It is the process which
involves a set of activities or elements directed towards the
achievement of aim.
Process includes-
 Environmental scanning(internal & external)
 Strategy formulation
 Strategy implementation
 Evaluation and control

6. Environmental Scanning

 Careful monitoring of an organization's
internal and external environments for
detecting early signs of opportunities
and threats that may influence its
current and future plans.

7. Strategy Formulation
 The process of developing long-range plans to deal effectively
with environmental opportunities and threats in light of
corporate strengths and weaknesses.
Composed of:
 Vision
 Mission
 Objectives
 Strategies
 Policies

8.  Vision- It answers the question “What do we want to
become?”and it often considered the first step in strategic
formulation.

 Mission-The purpose or reason for the corporation’s existence. It
tells who the company is?, what they do?. The basic purpose of the
organization and to accomplish vision .
 Objectives-The end results of planned activity. They state WHAT
is to be accomplished by WHEN. They should be quantified, if
possible.
 Strategies-A strategy is a comprehensive master plan stating
HOW the corporation will achieve its mission and objectives.
 Policies-Broad guidelines for making decisions.

9. Strategy Implementation
 The process of putting strategies and policies into action
through the development of:
 Programs - Statements of activities or steps
needed to accomplish a single-use plan.
 Budgets - Statements of a corporation’s
programs in monetary terms.
 Procedures - Systems of sequential steps
or techniques that describe in detail how to perform
particular tasks or jobs.

10. Evaluation and Control

The process of monitoring corporate activities and
performance results so that actual performance can
be compared with desired performance.
Performance-- Actual results at the end of the
process tells the performance of whole process.

11. McKinsey’s 7S Model

This model was developed in late 1970s by the
consultation at McKinsey and Company to assist
managers to do away with the difficulties in
implementation that are associated with change in the
organization. The basic premise of the model is that
there are seven internal aspects of an organization that
need to be aligned to achieve its intended objective.
To understand this model first of all we must know
what each ‘S’means and what is its implication.

12.  7S

13.  STRATEGY- Strategy covers vision mission
objectives goals and major actions plans and
policies.Exuction of strategy poses more problems
than formulation

 STRUCTURE- The skeleton of whole org..
Structure divides the org.roles and tasks amongst the
functions of structure
 SYSTEM-Under 7S framework system signifies
rules and regulations including procedures that
support the organization structure.Systems can be
FORMAL and INFORMAL.Change in strategy is
implemented through change in systems.

14. STAFFING-Recrutiing and selecting matching person for
the org. post or positions,training and developing them,and
placing them to their posts

SKILLS- A skills is an ability or proficiency in performing a
particular task or an ability to translate knowledge into
performance.Every company is known for its skills.For eg-
INFOSYS is known for its best personnel manager.
STYLE- Style stands for the patterns of actions taken by
Top Management over a period of time.Style has to change
with a change in strategy ,system,and structure.and if
doesnot change the strategy fails.

15.  SHARED VALUE- Shared value is the interconnecting
center of McKinsey's model and the set of traits, behaviors,
and characteristics that the organization believes in which
include the organization’s mission and vision .
