8-Mgnt- Strategic Management chapter.pdf

Strategic management is a holistic approach that organizations use to establish long-term objectives and develop effective strategies to achieve them. It involves a systematic process of analysis, decision-making, and implementation to align the organization's resources with its goals and the external environment.

At its core, strategic management begins with a comprehensive analysis of both internal and external factors. Internally, organizations assess their strengths, weaknesses, resources, capabilities, and culture. Externally, they examine market dynamics, industry trends, competitor actions, regulatory factors, and other external forces that may impact performance.

With a clear understanding of their internal capabilities and the external environment, organizations set their mission, vision, and objectives. The mission statement defines the organization's purpose, while the vision statement outlines its aspirations for the future. Objectives are specific, measurable targets that the organization aims to achieve within a certain timeframe. These goals provide direction for strategic planning and decision-making.

Next, organizations formulate strategies to accomplish their objectives. This involves identifying strategic options and selecting the best course of action to pursue. Strategies may focus on market positioning, innovation, cost leadership, differentiation, diversification, or strategic alliances. The chosen strategies should leverage the organization's strengths while addressing its weaknesses and external opportunities and threats.

Once strategies are formulated, they need to be translated into action plans and implemented throughout the organization. This includes allocating resources, defining roles and responsibilities, establishing performance metrics, and aligning organizational processes and systems with the strategic objectives. Effective communication and leadership are essential during implementation to ensure everyone understands the strategy and their role in achieving it.

Strategic management is an iterative process that requires continuous monitoring and adjustment. Organizations regularly evaluate their progress towards achieving strategic goals and measure the effectiveness of their strategies. This involves comparing actual performance against planned targets, identifying deviations, and taking corrective actions when necessary. Feedback mechanisms and performance measurement systems help organizations stay on track and adapt to changing circumstances.

Overall, strategic management provides a framework for organizations to navigate complex and uncertain environments, make informed decisions, and sustain competitive advantage over the long term. By aligning internal capabilities with external opportunities, organizations can achieve their objectives and create value for stakeholders.

1. Strategic Management

Introduction of Strategic Management

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2. Content

> Introduction

> Definition

> Mintzberg’s Views of Strategy

> Features of strategic management
> Role of strategic management

> Process of strategic management
> Need of Strategic management

> Benefits of Strategic management

> Limitations of strategic management

> Mission & Vision

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4. Introduction:

> Strategy comes from Greek word “Strategos” which means a plan to compete
with enemy (in army). In Hindi, it called “Rananeeti”.

» Strategy means that a plan of action designed to achieve a long-term overall
goals.

» So, the Strategic management meant that making an action plan to achieve
the organisational goals effectively and efficiently.

> We can say that it a game plan of any organisation to compete with
competitors and stay for long time in market on top position.

> Itis an integrated system, which focuses on all departments of an

organisation(marketing, finance, production, R&D and so on..) to achieve

the organisational goals successfully.

5. alles an ALE, to er its

objectives.

6. Henry Mintzberg’s Views of Strategy

> It tells about 5P's for strategy-
These are:-

o Plan — consciously intended course of action. (Strategy is developed in
advance and with purpose)

o Ploy — A way to outsmart the competitor.
(eg. buy patents so that competitor cannot launch a rival product.)

o Pattern — consistency in behavior. (what was successful in past can lead to
successful in the future)

o Position — location in environment. (how the organisation relates to its
competitive environment and what it can do to make its product unique in
the marketplace.)

ive — way of perceiving the world. (environment i IS dynamic)

7. Features of strategic management

> It is pervasive, integrated and coordinated management

process.

> It is basically a top management function.

> Itis mostly related to external environment.

> It is long term in nature.
> It provides overall frame work for guiding enterprise thinking

and action.

> Itis complex process,
> It is a continuous process.

>: both conceptual and analytical thought process.

8. » It gives direction to business.

» lt helps an organization in achieving its goals inan efficient

and effective manner.

» lt helps in grasping every opportunity that is available in the

market.

» lt helps in getting rid of the threats or else neutralizes them.

> It helps in forecasting.

> It helps in maintain past profits trends and helps as well in

increasing the future profits.

4 > It helps and assists in coping with uncertain environments.

9. Strategy Strategy

implementation evaluation

10. Continue :

> Strategy formulation includes developing a vision and mission, identifying

an organization’s external opportunities and threats, determining internal
strengths and weaknesses, establishing long-term objectives, generating
alternative strategies, and choosing particular strategies to pursue.

> Strategy implementation requires a firm to establish annual objectives,
devise policies, motivate employees, and allocate resources so that
formulated strategies can be executed. Strategy implementation often is
called the “action stage” of strategic management.

> Strategy evaluation is the final stage in strategic management. Here,
management compare the actual performance with standard performance
to find out deviation (for finding that the strategy made is working properly

or not.)

11. > Itneeded for grasping opportunities.
> It serves as a road map to the organization.

> TE helps in building competitive advantages .

> I needed due to rapidly changing business environment.

> Ithelps in knowing true actual position of business.

> It promotes effective resource allocation among the business units.

> TE helps in systematizing an organizations strategic decisions and

actions.

» For new invention, discoveries and enhancement of technologies .

> And so on.......

12. > It serves as a road map for an organization.

» lt helps in environment scanning.

> lt creates a frame work for internal communication among the

staff.

> It unifies the organization.

> Strategic planning ensures a rational allocation of resources.

» lt helps in increase of organizational effectiveness.

» lt helps in providing satisfaction to the personnel of the

organization.

in evaluating results.

13. TN

v

v

It is complex process.

It requires a high level of imagination, analytical ability, courage, foresight.

Itisa costly exercise.

It involves a lot of time.

Strategic plans are based on assumptions.

Due to poor information system and lack of awareness, managers cannot judge
the company’s position correctly.

In today’s fast changing environment, managers find it difficult to do any long
range planning.

Some other reasons are - Poor communication system , Failure to manage change
, Failure to coordinate, Over estimation of resource competence , Failure to obtain
employee commitment, Failure to obtain senior management commitment ,

derstand the customer.

14. S.no. Basis Vision
It describes th
. . “ne a . apa It depicts the company’s aspiration
th Meaning objective and its approach to arfultmmeranstinn jerga
reach these objectives. li WERE
2. What is it? Cause Effect
3. Talks about Present Future
4. Period Short-term Long-term
5 Purpose To inform To inspire
Dell’s mission is to be the most
successful computer company in General Motors’ vision is to be the
6. Example the world at delivering the best world leader in transportation

customer experience in markets
they serve.

products and related services.

ingvision in mind.

15. THANK
YOU

16. Presented by :

Yamini Kahaliya
(BBA Honor’s)

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