STRATEGIC AND OPERATIONAL MANAGEMENT-8615

STRATEGIC AND OPERATIONAL MANAGEMENT-8615-UNIT 3-AIOU-B.ED

1. Management Strategies in Educational Institutions

2. STRATEGIC AND OPERATIONAL MANAGEMENT Course Code: 8615 Unit 3 By: M u h a m m ad Inam Waris PhD (Education) Scholar V i s i ting Lecturer BZU Campus Vehari 0300 - 6 2 6 3 2 5 5 [email protected]

3. We will learn today about: Strategic Management Process Steps in Strategy Formulation Process Strategy Implementation Strategy Evaluation Strategic Decision Making SWOT Analysis Operational Management Techniques Operational Decision Making Unit 3: Outline

4. OBJECTIVES After reading this unit, you will be able to: Understand the concept of strategic management and operational management Manage an organization on the basis f process of strategic management Make better decisions for the development of your organization

5. Definition of Strategic Management Analysis Strategic goals (vision, mission, strategic objectives) Internal and external environment of the firm Decisions What industries should we compete in? How should we compete in those industries? Actions Allocate necessary resources Design the organization to bring intended strategies to reality

6. Strategic Management The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization.

7. Strategic management is the study of why some firms outperform others. How to create a competitive advantage in the market place that is unique, valuable, and difficult to copy “Total organization” perspective, integrating across functional areas. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. Conti….

8. Environmental Scanning Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. Strategy Formulation The process of deciding best course of action for accomplishing organizational objectives. Strategy Implementation Strategy into action. Strategy Evaluation Measuring performance, and taking remedial / corrective actions. STRATEGIC MANAGEMENT PROCESS

9. chronological order

10. Steps in Strategy Formulation Process The process of strategy formulation basically involves six main steps . Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order. 1 . Setting Organizations’ objectives - The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. 2. Evaluating the Organizational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position

11. Cont.…… 3. Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives. 4. Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit.

12. Cont.…… 5. Performance Analysis - Performance analysis includes discovering and analyzing the gap between the planned or desired performance. 6. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.

13. Strategy Implementation Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives .

14. main steps in implementing a strategy Developing an organization having potential of carrying out strategy successfully. Disbursement of abundant resources to strategy-essential activities. Creating strategy-encouraging policies. Employing best policies and programs for constant improvement. Linking reward structure to accomplishment of results. Making use of strategic leadership.

15. Strategy Formulation vs Strategy Implementation Strategy Formulation Strategy Formulation includes planning and decision making involved in developing organization’s strategic goals and plans. Strategy Formulation is placing the Forces before the action . Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making. Strategy Implementation Strategy Implementation involves all those means related to executing the strategic plans. Strategy Implementation is managing forces during the action . Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions

16. Cont.…… Strategy Formulation Strategy Formulation emphasizes on effectiveness. Strategy Formulation is a rational process. Strategy Formulation requires co-ordination among few individuals. Strategy Formulation requires a great deal of initiative and logical skills. Strategic Formulation precedes Strategy Implementation. Strategy Implementation Strategy Implementation emphasizes on efficiency. Strategy Implementation is basically an operational process. Strategy Implementation requires co-ordination among many individuals. Strategy Implementation requires specific motivational and leadership traits. Strategy Implementation follows Strategy Formulation.

17. Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities. Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about. Strategic decisions involve a change of major kind since an organization operates in ever-changing environment. Strategic decisions are complex in nature. Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk. STRATEGIC DECISION MAKING

18. Financial Benefits: It has been shown in many studies that firms that engage in strategic management are more profitable and successful than those that do not have the benefit of strategic planning and strategic management. Non-Financial Benefits: The section above discussed some of the tangible benefits of strategic management. Apart from these benefits, firms that engage in strategic management are more aware of the external threats, an improved understanding of competitor strengths and weaknesses and increased employee productivity. Closing Thoughts: In recent years, virtually all firms have realized the importance of strategic management. However, the key difference between those who succeed and those who fail is that the way in which strategic management is done and strategic planning is carried out makes the difference between success and failure. Benefits of Strategic Management

19. SWOT Analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats . By definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be external factors over which you have essentially no control.

20. SWOT Analysis helps in strategic planning in following manner. It is a source of information for strategic planning. Builds organization’s strengths. Reverse its weaknesses. Maximize its response to opportunities. Overcome organization’s threats. It helps in identifying core competencies of the firm. It helps in setting of objectives for strategic planning. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out. Advantages of SWOT Analysis

21. SWOT ANALYSIS FRAMEWORK

22. limitations of SWOT Analysis a. Price increase; b. Inputs/raw materials; c. Government legislation; d. Economic environment; e. Searching a new market for the product which is not having overseas market due to import restrictions; etc. Internal limitations may include: a. Insufficient research and development facilities; b. Faulty products due to poor quality control; c. Poor industrial relations; d. Lack of skilled and efficient labour ; etc

23. Operations management Operations management  is the administration of  business  practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations Management as the process whereby resources, flowing within a defined system, are combined and transformed by a controlled manner to add value in accordance with policies communicated by management.

24. OPERATIONAL DECISION MAKING

25. 7 Steps of the Decision-Making Process Identify the decision. Gather relevant info. Identify the alternatives. Weigh the evidence. Choose among the alternatives. Take action. Review your decision.

26. questions

27. Assignment Strategic Planning–Forced Choice Model WhatsApp me 03 3 3 - 6 2 6 3 2 5 5