Strategic Management

Strategic Management

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  STRATEGIC MANAGEMENT PRESENTED BY: RUPESHNYAUPANE MBA
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  INTRODUCTION  Strategy?  Longterm approach of doing business in order to stay ahead of competitors and achieve organizational objectives particularly by satisfying customers.  “Strategic management is a set of managerial decisions and actions that determine the long term performance of a corporation.  Strategic management process consist of there stage strategy formulation. strategy implementation. strategy evaluation.
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  Key terms instrategic management  Competitive advantage: “ anything that a firm does specially well compared to rival firms.”  Vision statement: “ what do we want to become”  Mission statement: “statement of purpose that distinguish one business from other similar firms.”
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  Three level ofstrategy: Corporate level Business level Functional level
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  Reasons for poorstrategic planning  Lack of knowledge & expertise in strategic planning  Firefighting approach  Perception of waste of time & resources  Laziness  Content with success  Fear of failure  Overconfidence  Prior bad experience  Fear of unknown  Structural inertia  Conflict of interest among managers, etc
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  Component of strategicmanagement model  Mission  Internal analysis.  External analysis.  Strategic analysis and choice.  Long term objectives.  Generic and grand strategies.  Short term objectives.  Functional tactics.  Strategic controls and continuous improvement.
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  Importance of strategicmanagement  Opportunities.  Meet competition.  Performance improvement.  Effective resource management.  Organization attractiveness.  Change management.
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  Strategy formulation framework: This framework shows about how strategy can be formulated and tools using in strategy formulation.  Strategy formulation includes developing a vision and mission statement, analyzing internal and external environment, establishing long term objectives, generating alternative strategies and chossing strategy.
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  Strategy formulation framework THEDECISION STAGE QUANTATIVE STRATEGIC PLANNING MATRIX THE MATCHING STAGE SWOT, SPACE, BCG, IE, GRAND STRATEGY MATRIX THE INPUT STAGE: EFE, CPM, IFE
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  TYPES of STRATEGY: Integrationstrategy Forward integration Backward integration Horizontal integration Intensive strategy Market penetration Market development Product development Divarication strategy Related divarication Unrelated divarication Defensive strategy Retrenchment Divesture liquidation STRATEGY
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  CONT….  FORWARD INTREGRATION:increased controlled over distributor and retailer.  Backward integration: increased controlled over suppliers.  Horizontal integration: increased controlled over competitors.  Market penetration: increased market share from present product.  Market development: introducing product in to new geographical areas.  product development: developing new product or adding value to existing product.
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  Cont….  Related diversification:Adding new, but related product or service.  Unrelated diversification: adding new, but unrelated product or service.  Retrenchment: sales some assets from company.  Divesture: selling part of an organization.  Liquidation: selling all of a company assets.
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