Strategic_Management_ Review_of_Concepts

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1. Strategic Management and Strategic Analysis: Navigating Business Success Essentials of Management and Analysis for Business Success

2. Outline Introduction to Strategic Management Fundamentals of Strategic Analysis Internal and External Environment Analysis Formulating and Implementing Strategies Evaluating and Controlling Strategies PRESENTATION TITLE 2

3. Introduction to Strategic Management

4. Definition and Importance of Strategic Management Definition of Strategic Management Strategic management is the process of analyzing the organization's resources and capabilities, assessing the external environment, and developing strategies that align with the organization's goals. Importance of Strategic Management Strategic management is essential for long-term success and helps organizations adapt to changes in the environment. It helps the organization stay ahead of the competition and achieve its goals effectively.

5. Key Components of Strategic Management Environmental Scanning Environmental scanning involves analyzing the internal and external environment to identify opportunities and threats that could affect the organization's performance. Strategy Formulation Strategy formulation involves developing strategies that align with the organization's goals and objectives and help it gain a competitive advantage in the market. Strategy Implementation Strategy implementation involves putting the strategies into action by allocating resources, assigning responsibilities, and creating a timeline for achieving the goals and objectives. Evaluation and Control Evaluation and control involve assessing performance and making necessary adjustments to ensure that the strategies are effective and the organization is achieving its goals and objectives. PRESENTATION TITLE 5

6. The Strategic Management Process Environmental Scanning Environmental scanning is the process of analyzing the internal and external environment to identify opportunities and threats that may impact the organization's goals. Strategy Formulation Strategy formulation is the process of developing strategies that align with the organization's goals based on the results of the environmental scanning. Strategy Implementation Strategy implementation involves putting the strategies into action and allocating necessary resources to achieve the organization's goals. Evaluation and Control Evaluation and control involve assessing performance and making necessary adjustments to ensure that the organization's goals are achieved. PRESENTATION TITLE 6

7. Fundamentals of Strategic Analysis

8. Overview of Strategic Analysis Strategic analysis is a process of evaluating an organization's internal and external environment to identify strengths, weaknesses, opportunities, and threats. It helps organizations make informed decisions and develop strategies that align with their goals. PRESENTATION TITLE 8

9. Tools and Techniques Used in Strategic Analysis SWOT Analysis SWOT analysis is a commonly used tool in strategic analysis. It helps organizations identify their internal strengths and weaknesses, as well as external opportunities and threats. PESTEL Analysis PESTEL analysis is a tool used to analyze the external macro-environmental factors that may impact an organization's performance. These factors include political, economic, sociocultural, technological, environmental, and legal factors. Porter's Five Forces Analysis Porter's Five Forces analysis is a tool used to analyze the external competitive environment of an industry. The five forces include the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing competitors. PRESENTATION TITLE 9

10. The Role of Strategic Analysis in Decision Making Crucial Role of Strategic Analysis Strategic analysis is crucial for decision-making as it provides organizations with the necessary information to develop informed strategies. Identifying Strengths, Weaknesses, Opportunities, and Threats Strategic analysis helps organizations identify their strengths, weaknesses, opportunities, and threats, which provides them with a foundation to develop effective strategies that address those factors. PRESENTATION TITLE 10

11. Internal and External Environment Analysis

12. Internal Environment Analysis (SWOT) SWOT analysis is a tool used to identify internal factors that may impact performance. It helps organizations identify their strengths, weaknesses, opportunities, and threats. PRESENTATION TITLE 12

13. External Environment Analysis (PESTEL) Political Factors Political factors include government policies and regulations that may impact business operations, such as taxation policies, trade regulations, and labor laws. Economic Factors Economic factors include macroeconomic conditions that may impact business operations, such as inflation rates, unemployment rates, and exchange rates. Social Factors Social factors include demographic characteristics and cultural trends that may impact business operations, such as population growth, education levels, and consumer behavior. Technological Factors Technological factors include innovations and advancements that may impact business operations, such as automation, digitalization, and the Internet of Things (IoT). PRESENTATION TITLE 13

14. Industry Analysis (Porter's Five Forces) Porter's Five Forces is a tool used in industry analysis to identify the competitive forces that may impact performance. It helps organizations develop strategies to address competitive threats and take advantage of opportunities. PRESENTATION TITLE 14

15. Formulating and Implementing Strategies

16. Types of Business Strategies (Corporate, Business, Functional) Corporate Strategy Corporate strategy refers to the decisions and actions that shape the scope of the organization and its relationship with its environment. It involves decisions about mergers and acquisitions, diversification, and international expansion. Business Strategy Business strategy involves decisions about how a company will compete in a particular industry. It involves decisions about product and service offerings, pricing, marketing, and distribution. Functional Strategy Functional strategy involves decisions about how to support business strategy. It involves decisions about resource allocation, organizational structure, and the development of core competencies. PRESENTATION TITLE 16

17. Strategy Formulation Process Analyze Internal and External Environment The first step in the strategy formulation process is to analyze the internal and external environment. This involves SWOT analysis, PESTEL analysis, and other assessment tools to identify strengths, weaknesses, opportunities, and threats. Setting Objectives The second step in the strategy formulation process is to set objectives. Objectives should be SMART (specific, measurable, achievable, relevant, and time-bound) and aligned with the overall mission and vision of the organization. Develop Strategies The third step in the strategy formulation process is to develop strategies. Strategies should be based on the organization's strengths, weaknesses, opportunities, and threats, and should be aligned with the objectives set in the previous step. Implement Strategies The final step in the strategy formulation process is to implement the strategies developed in the previous step. This involves allocating resources, monitoring progress, and making adjustments as needed to ensure that the organization achieves its objectives. PRESENTATION TITLE 17

18. Challenges in Strategy Implementation Resistance to Change One of the biggest challenges in implementing strategies is resistance to change. Employees may resist changes in their roles, responsibilities, or workflows, making it difficult to implement new strategies. Lack of Resources or Support Implementing strategies may require additional resources or support, which may not be available within the organization. Lack of resources or support can hinder the successful implementation of strategies. Unforeseen Circumstances Unforeseen circumstances such as changes in the market, economic downturns, or unexpected events may arise, making it difficult to implement strategies as planned. Organizations must be prepared to adapt to these unforeseen circumstances. PRESENTATION TITLE 18

19. Evaluating and Controlling Strategies

20. Strategic Control and Performance Measurement Strategic Control Strategic control involves monitoring performance and making necessary adjustments to ensure that strategies are implemented effectively. It is an ongoing process that helps organizations stay on track and achieve their goals. Performance Measurement Performance measurement involves assessing progress toward objectives and determining whether strategies are achieving their intended outcomes. It is a critical component of strategic management and helps organizations evaluate the effectiveness of their strategies. PRESENTATION TITLE 20

21. Balanced Scorecard and Other Evaluation Tools Balanced Scorecard The balanced scorecard is a structured methodology for evaluating business performance that measures performance across multiple dimensions, including financial, customer, internal processes, and learning and growth. Benchmarking Benchmarking is a tool used to evaluate a company's performance by comparing it to other businesses in the same industry. It helps companies identify areas where they can improve their performance and achieve a competitive advantage. Key Performance Indicators (KPIs) KPIs are specific metrics that are used to measure a company's progress toward achieving its goals. They are used to identify areas of improvement and to keep track of progress. PRESENTATION TITLE 21

22. Continuous Improvement and Feedback Loop Continuous Improvement Continuous improvement is an ongoing effort to identify and improve processes and procedures within an organization. It is achieved through a systematic and iterative process of setting goals, measuring performance, and making adjustments based on feedback. Feedback Loop Feedback loop is a critical component of continuous improvement. It involves collecting feedback from stakeholders, including employees, customers, and partners, to identify areas for improvement and make necessary adjustments to processes and procedures. PRESENTATION TITLE 22

23. Conclusion PRESENTATION TITLE 23