This document discusses strategic management and its concepts. It describes the four phases in the evolution of strategic management, from basic financial planning to modern strategic management that involves various departments. Strategic management is defined as a set of managerial decisions that determines long-term firm performance. The document also outlines the basic elements of the strategic management process, including environmental scanning, SWOT analysis, strategy formulation involving mission statements and goals/objectives, strategy implementation through programs and budgets, and evaluation and control.

1. Concept and Process of
Strategic Management
Dr. Md. Shamsul Arefin
Secretary
Anti-corruption Commission of
Bangladesh

2. Concepts of Strategic Management
Strategic Management
Set of managerial decisions and actions
that determines the long-run performance
of a firm.

3. Concepts of Strategic Management
4 Phases in the Evolution of Strategic
Management
1. Basic financial planning – internal focus on
budgeting (1 yr horizon)
2. Forecast-based planning – extrapolate the current
situation into the future (3-5 yr horizon)
3. Externally-oriented planning – planning department
and/or consultants develop a top-down strategy
with no lower level involvement.
4. Strategic management – involves various
departments and levels across the organization. An
ongoing process that includes implementation,
evaluation and control issues.

4. Concepts of Strategic Management
Highly Rated Benefits
• Clearer sense of strategic vision
• Sharper focus on strategic importance
• Improved understanding of changing
environment

5. Concepts of Strategic Management
Not Always a Formal Process
• Where is the organization now? (not
where do we hope it is)
• If no changes are made, where will the
organization be in 1, 2, 5 or 10 years?
• What specific actions should
management undertake?
• What are the risks and payoffs?

6. Learning Organization
is skilled at creating, acquiring and transferring knowledge
and modifying its behavior to reflect new knowledge and
insight.
• Key Activities:
– Solve problems systematically
– Experiment with new approaches
– Learn from experience
– Transfer knowledge throughout the organization
Strategic Management

7. Organizational Knowledge
– Technical Skills – research
– Functional Skills – manufacturing and marketing
– Managerial Expertise – plan, organize, influence and
control
Concepts of Strategic Management

8. Concepts of Strategic Management
Basic Elements of the Strategic
Management Process

9. Concepts of Strategic Management
Environmental Scanning
Monitoring, evaluation, and disseminating
information from external and internal
environments –to key people in the firm
SWOT Analysis
•Strengths – Weaknesses
•Opportunities – Threats

10. Prentice Hall, Inc. © 2006 1-10
Strategy Formulation
Mission Statement
• Purpose/reason for organization
• Promotes shared expectations
• Communicates public image
• Who we are; what we do; what we
aspire to

11. Goals & Objectives
Goals/Objectives need to be:
Specific
Measurable
Action oriented
Realistic
Timing is identified
SMART Goals

12. Prentice Hall, Inc. © 2006 1-12
Strategy Implementation
• Programs – single use plans (projects)
• Budgets – costs associated with a program
• Procedures – system of sequential steps that
describe how a particular task or job is to be
done
Concepts of Strategic Management

13. Evaluation and Control
Process by which corporate activities and
performance results are monitored so that
actual performance can be compared with
desired performance.
Concepts of Strategic Management