SUMMARY OF CHAPTER 5

STRATEGIC MANAGEMENT
NAME: ALISHA KHAN

CLASS: BBA 1-H

ENROLLMENT # 02-111201-212

SUBMITTED TO: MA’AM ATTIYA

In this chapter we read about strategic management and its

problem because every business needs good planning, management
and organizational goals.

Strategic Management:

Strategic management is the management of organization resources

to achieve its goal and objective. Strategic management involves
setting objective, analyzing the internal organization and evaluating
strategies.
Strategies: A plan of action designed to achieve a long term or
overall aim.

Strategic Management Important:

 ORGANIZATION
PREFORMENCE

ADAPT TO BUSINESS
ENVIRNOMENT

FOCUS ON
ORGANIZATIONAL GOALS

Strategic Management Process:

A six step process that encompasses strategic planning,

implementation, and evaluation.
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Strategic Management Importance:

 is independent of the planning approach

 is adaptable to support organizational processes
 captures robust information about the strategic plan
 maintains the linkages and dependencies between plan
elements
 provides a robust approach to managing the lifecycle
 supports effective transitions between lifecycle phases
 supports integrated risk management across plan elements
 provides support for a dynamic planning & change
management
 provides monitoring and analysis of plan quality, health, and
status
 delivers robust information for strategic decision making

Types Of Organizational Strategies:

Corporate Strategy:

Top managements overall plan for the entire organization and its
strategic business unit.

Types of Corporate Strategies:

1. Growth
2. Stabilities
3. Renewal

Growth Strategy:

A growth strategy is a plan of action designed to help businesses

capture a larger share of the market, even if it comes at the expense
of short-term profit.

Types of Growth Strategy:

1. CONCENTRATION
2. VERTICAL INTEGRATION
3. HORIZONTAL INTEGRATION
 4. DIVERSIFICATION

Stability Strategy:

A corporate strategy in which an organization continues to do what

it is currently doing.

Renewal Strategy:

A corporate strategy designed to address declining performance.

Strategic Business Unit:

A relatively autonomous division of a large company that operates

as an independent enterprise with responsibility for a particular
range of products or activities

BCG Matrix:

The Matrix is divided into 4 quadrants based on an analysis of

market growth and relative market share.

 1. Dogs: These are products with low growth or market.

 2. Question marks or Problem Child: Products in high growth

markets with low market share.

 3. Stars: Products in high growth markets with high market

share.

 4. Cash cows: Products in low growth markets with high market

share

High low high

 STARS ?

CASH
DOGS
COW
low

THE ROLE OF COMPETITIVE ADVANTAGE:

Competitive Advantage:

A condition or circumstance that puts a company in a favourable or

superior business position.

Competitive Strategy:

Competitive Strategy is defined as the long term plan of a

particular company in order to gain competitive advantage over
its competitors in the industry.

FIVE FORCES MODEL:

 New
Entrants

Insentive of
Suppliers rivalry among Buyers
current
competitors

Substitutes

TYPES OF COMPETITIVE STRATEGY:

 Cost Leadership Strategy:

Seeking to attain the lowest total overall costs relative to other
industry competitors.
 Differentiation Strategy:
Attempting to create a unique and distinctive product.
 Focus Strategy:
Using a cost or different advantages to exploit a particular
market segment as opposed to a larger market.

Functional Strategy:
The strategy used by an organizations various functional
department to support competitive strategy.
 Effected Strategy Leadership:

DETERMINNING
THE
ORGANIZATION
PURPOSE
ESTABLISHING EXPLOITING AND
APPROPRIATE MAINTAINING THE
BALANCED ORGANIZATION
ORGANIZATIONAL CORE
CONTROL COMPETENCIES

EMPHASIZING
ETHICAL EFFECTED
ORGANIZATION STRATEGIC HUMAN CAPITAL
DECISION AND LEADERSHIP
PRACTICES

REFRAMING
PREVAILING
CREATE A STRONG
VIEWS BY ASKING
ORGANIZATIONAL
QUESTION AND
CULTURE
QUETIONING
ASSUMPTIONS
CREATE AND
MAINTAIN
ORGANIZATIONAL
RELATIONSHIP

Strategic Flexibility:

The ability to recognize major external changes to quickly commit

resources.

Customer Services Strategies:

 Give all your employees excellent product knowledge. ...

 Train employees in customer empathy. ...

 Build infrastructure that supports great customer service. ...

 Resolve customer issues at their first point of contact. ...

 Empower your employees to make customers happy. ...

 Deliver on your promises. ...

 Make it personal.

Innovation Strategies:
 An innovation strategy is a plan used by a company to encourage
advancements in technology or services, usually by investing money
in research and development activities.