Scribd
Upload
21 views17 pages

The Nature of Strategic Management

This document provides an overview of strategic management, including key concepts like vision and mission statements, analyzing opportunities/threats and strengths/weaknesses, developing alternative strategies, implementing strategies, and evaluating performance. It discusses how strategic management allows organizations to adapt to changes, achieve competitive advantage through effective strategy formulation, implementation, and evaluation. Key benefits are improved financial performance as well as greater understanding of competitors and awareness of threats. Business ethics are also highlighted as an important part of strategic management.

Uploaded by

Kritika Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
21 views17 pages

The Nature of Strategic Management

This document provides an overview of strategic management, including key concepts like vision and mission statements, analyzing opportunities/threats and strengths/weaknesses, developing alternative strategies, implementing strategies, and evaluating performance. It discusses how strategic management allows organizations to adapt to changes, achieve competitive advantage through effective strategy formulation, implementation, and evaluation. Key benefits are improved financial performance as well as greater understanding of competitors and awareness of threats. Business ethics are also highlighted as an important part of strategic management.

Uploaded by

Kritika Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 17

Chapter 1 The Nature of Strategic Management

Strategic Management Defined

Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives.

Strategy Formulation
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 Metrics Corrective Actions

Achieving Sustained Competitive Advantage


1. Adapting to change in external trends, internal capabilities and resources

2. Effectively formulating, implementing & evaluating strategies

Adapting to Change Key Strategic Management Questions


What kind of business should we become? Are we in the right fields Are there new competitors What strategies should we pursue? How are our customers changing?

Key Terms

Vision Statement What do we want to become?

Mission Statement What is our business?

Key Terms

Opportunities & Threats (External)


Analysis of Trends: Economic

Social
Cultural Demographic/Environmental

Political, Legal, Governmental


Technological Competitors

Key Terms

Strengths & Weaknesses (Internal)


Typically located in functional areas of the firm Management Marketing Finance/Accounting

Production/Operations
Research & Development Computer Information Systems

Key Terms

Strategies
Means by which long-term objectives are achieved

Comprehensive strategic management model


External Audit

Chapter 3

Vision & Mission

Long-Term Objectives

Generate, Evaluate, Select Strategies

Implement Strategies: Mgmt Issues

Implement Strategies: Marketing, Fin/Acct, R&D, CIS

Measure & Evaluate Performance

Chapter 2

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Internal Audit

Chapter 4

Benefits of Strategic Management


Financial Benefits
Improvement in sales Improvement in profitability

Productivity improvement

Benefits of Strategic Management


Non-Financial Benefits
Improved understanding of competitors strategies Enhanced awareness of threats

Reduced resistance to change


Enhanced problem-prevention capabilities

Business Ethics & Strategic Management

Code of business ethics


Provides basis on which policies can be devised to guide daily behavior and decisions in the workplace

Advantages of International Operations


Absorb excess capacity

Reduce unit costs


Spread risk over wider markets

Low-cost production facilities

Disadvantages of International Operations

Difficult communications Underestimate foreign competition Cultural barriers to effective management Complications arising from currency differences

You might also like