STRATEGIC
MANAGEMENT
Course content
Subject Page number
1 Introductory 1 - 13
Chapter one
2 14 – 23
Introduction to strategic management
Chapter two
3 24 – 28
The Levels and Formulation of Strategy
Chapter three
4 29 – 36
External Analysis
Chapter four
5 37 – 44
Internal Analysis
Chapter five
6 45 -53
SWOT Analysis
Chapter six
7 54 – 58
Implementing Strategy: Organization Structure, Distinctive Competences, and Resource Allocation
Chapter seven
8 59 – 74
Strategy In Action Implementation Step
Chapter eight
9 75 – 89
The phases of implementation strategy
Chapter nine
10 90- 111
Human resource development Implementation strategy
Chapter ten
11 112-123
Strategy Implementation And Evaluation
Chapter eleven
12 124-131
Strategic Plan Implementation In firms
Chapter twelve
13 132-149
Relation Of Strategies And Technology
14 Case study + general review 150 – 156
Chapter One :Introduction To
Organizations
Chapter objectives :
1. what is an organization ?.
2. Introduction to strategic management
3. The Importance Of Strategic Management
4. The Strategic Management Process
5. Types Of Organizational Strategies
6. Strategic Management In Today’s Environment
1- Define what is an organization .
What is an organization?
Any group working together to
achieve common goals
Must have an ongoing purpose
Includes corporations, government
agencies, family businesses, non-
profits
1- Define what is an organization .
Organization definition
An organization is a collection of people
working together in a coordinated and
structured fashion to achieve one or more
goals.
The Basic Tasks of Organization
Achieving high levels of productivity requires SPECIALIZATION
Specialization by individuals necessitates COORDINATION
For coordination to be effective requires COOPERATION
But goals of employees = goals of owners
THE AGENCY PROBLEM
ORGANIZATIONAL CHALLENGE: design structure & systems
that:
Permit specialization
Facilitate coordination by grouping individuals & linking
groups with systems of communication, decision making, &
control
Deploy incentives to align individual & firm goals
Introduction
Effective managers recognize the role that
strategic management plays in their organization’s
performance. Throughout this chapter, students
discover that good strategies can lead to high
organizational performance.
What Is Strategic Management
1. Strategic management is what managers do to
develop the organization’s strategies.
2. Strategic management involves all four of the
basic management functions—planning, organizing,
leading, and controlling.
Strategic Management –Defined
Ch 1 -9
Art & science of formulating, implementing,
and evaluating, cross-functional decisions that
enable an organization to achieve its objectives
Why Is Strategic Management
Important?
1. Strategic management has a significant impact on how well
an organization performs.
2. In today’s business world, organizations of all types and sizes
must manage constantly changing situations.
3. Today’s companies are composed of diverse divisions, units,
functions, and work activities that must be coordinated.
4. Strategic management is involved in many of the decisions
that managers make.
relationship between an organisation's
vision mission strategy and objectives
The Strategic Management Process
What Is Strategic Management?
Ch 1 -13
1. Strategic management is what managers do to
develop the organization’s strategies.
2. Strategic management involves all four of the
basic management functions—planning, organizing,
leading, and controlling.
3 Stages of the Strategic Management
Process
Ch 1 -14
Strategy formulation
Strategy implementation
Strategy evaluation
Strategy Formulation
Ch 1 -15
Vision & Mission
External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Strategy Evaluation
Internal Review
External Review
Performance Measurement
Corrective Action
Key Terms in Strategic Management
Competitive advantage
Strategists
Vision and mission statements
External opportunities and threats
Internal strengths and weaknesses
Long-term objectives
Strategies
Annual objectives
Policies
Strategic Management is Gaining and
Maintaining Competitive Advantage
Anything that a firm does especially well
compared to rival firms
Strategists
Gather Information
Analyze Information
Organize Information
Vision and Mission Statements
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Ch 1 -21
External Opportunities and Threats
Analysis of Trends
Economic
Social
Cultural
Demographic/Environmental
Political,
Legal, Governmental
Technological
Competitors
Ch 1 -22
External Opportunities and Threats
Basic Tenet of Strategic Management
Take advantage of
External Opportunities
Strategy Formulation
Avoid/minimize impact of
External Threats
Ch 1 -23
Internal Strengths and Weaknesses
Controllable activities performed
especially well or poorly
Determined relative to competitors
Ch 1 -24
Internal Strengths and Weaknesses
Typically located in functional areas of the firm
Management
Marketing
Finance/Accounting
Production/Operations
Research
& Development
Management Information Systems
Ch 1 -25
Internal Strengths and Weaknesses
Assessing the Internal Environment
Financial Ratios
Performance Measures
Internal Factors
Industry Averages
Survey Data
Ch 1 -26
Long-Term Objectives
Specific results that an organization seeks
to achieve in pursuing its basic mission
Long-term means more than one year
Ch 1 -27
Long-Term Objectives
Essential for ensuring the firm’s success
Provide direction
Aid in evaluation
Create synergy
Reveal priorities
Focus coordination
Provide basis for planning, organizing,
motivating, and controlling
Ch 1 -28
Strategies
Means by which long-term objectives are
achieved
Ch 1 -29
Strategies
Examples
Geographic expansion
Diversification
Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
Ch 1 -30
Annual Objectives
Short-term milestones that firms must
achieve to reach long-term objectives
Ch 1 -31
Policies
Means by which annual objectives will be
achieved
Ch 1 -32
Strategic Management Model
Strategic Management Process
Dynamic & continuous
More formal in larger organizations
Ch 1 -33
Strategic Management
Communication is a key to successful
strategic management
Benefits of Strategic Management
Ch 1 -35
Benefits of Strategic Management
Nonfinancial Benefits
Enhanced awareness of threats
Improved understanding of competitors’ strategies
Increased employee productivity
Reduced resistance to change
Clearer understanding of performance-reward
relationship
Enhanced problem-prevention capabilities
Why Some Firms Do No Strategic Planning
Lack of knowledge of strategic planning
Poor reward structures
Fire fighting
Waste of time
Too expensive
Laziness
Content with success
Why Some Firms Do No Strategic Planning
(continued)
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Honest difference of opinion
Suspicion
