Strategic Management
Reviewer – Module 1
Strategy – is an integrated and coordinated
set of commitments, decisions and actions 4. Implement strategy
designed to exploit core competencies and
gain a competitive advantage Build an organization capable of
carrying out strategy
Strategic Management – is the formulation Allocate ample resources to
and implementation of the major goals and strategy critical activities
initiatives taken by a company's top Establish strategy supportive
management on behalf of owners, based on policies and procedures
consideration of resources and an Institute Best Practices and
assessment of the internal and external mechanisms for continuous
environments in which the organization improvement
competes Install support systems that
allow personnel to carry out
Tasks of Strategic Management their strategic roles effectively
Tie rewards/incentives to
1. Develop Strategic Vision and performance objectives and
Mission good strategy execution
Strategy supportive work
Strategic vision – road map to future
environment and corporate
of company; unique to a company;
culture
guides decision making; shapes
Exercise strategic leadership
strategy
5. Evaluate, review, correct
2. Set objectives
Continuously monitor
Objectives – specific performance
performance
targets
Monitor changes in environment
3. Craft strategy to achieve objectives Initiate corrective adjustments as
needed
Levels of strategy
Corporate Factors shaping the choice of strategy
Business
Societal, political, regulatory,
Functional
community citizenship considerations
Operating
Industry attractiveness; changing
industry and competitive conditions
*done within context of internal and
external situation Company opportunities and threats
Company strengths, weaknesses and
competitive capabilities
Personal ambitions, business 2. Strategy Formulation
philosophies, and ethics of key
executives Strategy formulation – is the process of
Shared values and company culture deciding best course of action for
accomplishing organizational objectives
Industry and Competitive Analysis and hence achieving organizational
Dominant economic traits purpose. After conducting environment
Existing competition and competitive scanning, managers formulate corporate,
forces business and functional strategies.
Driving forces in industry
3. Strategy Implementation
Strongest/weakest companies
Key Success Factors for the industry
Strategy implementation – implies
Overall industry attractiveness
making the strategy work as intended or
putting the organization’s chosen
Company Situation Analysis
strategy into action. Strategy
Identify current mission, objectives, implementation includes designing the
strategy organization’s structure, distributing
How well is current strategy working? resources, developing decision making
SWOT process, and managing human resources.
Financial analysis
Strength of competitive position 4. Strategy Evaluation
Strategic issues/problems
Strategy evaluation - is the final step of
Strategic analysis leads to good (realistic) strategy management process. The key
strategic choices. strategy evaluation activities are:
appraising internal and external factors
Strategic management process has that are the root of present strategies,
following four steps: measuring performance, and taking
remedial / corrective actions. Evaluation
1. Environmental Scanning makes sure that the organizational
strategy as well as its implementation
Environmental scanning – refers to a meets the organizational objectives.
process of collecting, scrutinizing, and
providing information for strategic purposes. These components are steps that are carried,
It helps in analyzing the internal and in chronological order, when creating a new
external factors influencing an organization. strategic management plan. Present
After executing the environmental analysis businesses that have already created a
process, management should evaluate it on a strategic management plan will revert to
continuous basis and strive to improve it. these steps as per the situation’s
requirement, so as to make essential
changes.
