Professional Documents
Culture Documents
Strategic Management
(Chapter 1)
Instructor: Moses Acquaah, Ph.D.
377 Bryan Building
Phone: (336) 334-5305
Email: acquaah@uncg.edu
Lecture Objectives
By the end of this lecture, students should be able
to:
1. Explain the functions of management
2. Define and explain strategy and strategic management
3. Explain why strategic management is important
4. Explain the strategic management process
5. Describe the levels of organizational strategies
6. Discuss the misconceptions about strategy and strategic
management
OBJECTIVE #1
Functions of Management
Planning, Organizing, Leading; &
Controlling (PLOC)
Planning
– defining goals and objectives
– deciding what type of activities the
company will engage in
– determining the resources needed to
achieve the organization’s goals &
objectives.
Functions of Management
Leading
– Attracting people to the organization.
– Specifying job responsibilities
– Grouping jobs into work units
– Marshalling and allocation of resources
– Creating good working conditions
Functions of Management
Organizing
– Directing, motivating, and communication with
employees, individually & in groups.
– Conflict resolution.
Controlling
– Monitoring performance of people & units.
– Provision of feedback or information about
progress.
– Identification of performance problems &
actions to correct problems.
Disciplinary Focus
Various disciplines in “management”
emerge from the functions of management:
– Business Policy (formally called Strategic
Planning) from the planning function.
– Organizational Behavior primarily from the
leading function.
– Human Resources Management primarily
from the organizing function.
– Strategic Management, originated from
Business Policy, but focuses on overall
management – PLOC – and beyond.
OBJECTIVE #2
What’s Strategy?
Strategy is management’s overall plan and actions for
deploying resources and skills taking into
consideration opportunities and threats in the
environment
– to achieve it’s mission, vision and objectives
– to establish a favorable competitive position.
Strategy involves:
– An organization’s goals
– A series of related decisions & actions
– Takes into account key internal strengths & weaknesses and
external opportunities threats
– Analysis, communication, coordination, & action
What is Strategic Management?
Focuses on how managers formulate and implement,
and evaluate strategies aimed at developing and
maintaining competitive advantage:
– the reason some firms enjoy higher levels of performance
than their rivals or competitors.
Strategic management is therefore concerned with
overall PLOC
Four aspects that set strategic management apart:
– Interdisciplinary
– External focus “Big picture” view of an
– Internal focus organization influenced by
– Future directions its external environment
Strategic Management’s
Uniqueness
Field of Study Level of Analysis
– Macroeconomics – The economy
– Microeconomics – Industries & markets
– Strategic Management – Firms & businesses
– Finance – Investment Projects
– Marketing – Products & services
– Org. Behavior – Individuals & Groups
– Human Resource Mgmt. – Tasks & Structure
– Operations Mgmt. – Plants
OBJECTIVE #3
Importance of Strategic Management
Gives every employee a role to play in making the firm
successful
– Applies to all professional employees, not just those in
management
– Allows decision-making, allocation of resources and
management of people to be based on a firm’s strategic plan
– Success as a manager (as measured by your promotion, job
security, and pay increases) is often determined by your efforts
& departments contribution to overall organization’s success
Makes a difference in performance levels
– Research suggest that successful companies use strategic
management concepts & techniques
– Success evolves from “knowing what you’re doing” and often
implies having a strategic plan
Importance of Strategic Management
Provides systematic approach to uncertainties that
organizations face
– Competitive & global environment are dynamic (changing)
– Change, whether significant of minor, must be recognized
and analyzed, & dealt with
– Strategic management allows for the analysis of the situation
(identifying the sources of change in environment)
Coordinates and focuses employees to achieve
organization’s goals
– Allows for team effort which is coordinated for firm success
– Allows for development of a plan, communication,
coordination, & cooperation among diverse depts & functions
OBJECTIVE #4
Strategic Management Process
Establishing a mission, vision and
objectives
Environmental Analysis
Internal Analysis
Strategy Formulation
Strategy Implementation
Strategic Control and Performance
Evaluation
The Strategic Management
Process
Internal
Analysis
Environ.
Analysis
Mission, Vision & Objectives
A company’s mission is a statement of
– the basic purpose or reason for its existence
– its values (role to stakeholders - customers, employees,
society, etc.).