DEPARTMENT OF MANANGEMENT SCIENCES HAZARA UNIVESRITY

MANSEHRA

Assignment 01

Subject : Advanced Strategic Management

Submitted to: Dr. Rizwana Tirmizi
Submitted by: Syed Nouman Ashraf

Topic
what is strategic management
Contents
what is strategic management?..................................................................................................................2
How it is different from business environment?.....................................................................................2
Discuss the phases of strategic management?........................................................................................3
Strategic formulation Characteristics..................................................................................................3
Strategy Implementation.....................................................................................................................3
Strategic management evaluation.......................................................................................................4
How does strategic management typically evolve in corporation...........................................................4

What is strategic management?

Meaning & Definition

 Strategic management can be defined as “the art and science of formulating,

implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives”
 Strategic management focuses on integrating management, marketing,
finance/accounting, production/operations, research and development, and
information systems to achieve organizational success.
 The strategic management process can be described as an objective, logical,
systematic approach for making major decisions in an organization.
 It attempts to organize qualitative and quantitative information in a way that
allows effective decisions to be made under conditions of uncertainty.

How it is different from business environment?

Environment is defined as something external to an individual or organization. From this angle,

business environment refers to all external factors which will influence the activities of business.
However, some experts have used the term “environment” in a broader sense. They defined
business environment as external and internal factors that have direct or indirect influence on
business or business activities. Business environment consists of all the factors that affect a
company’s operations, actions and outcomes. It is comprised of macro environment and micro
environment, the former includes legal and political environment, social environment, economic
environment and technological environment, and the later includes customers, competitors,
stakeholders, suppliers, banks and so on.

The Characteristics Of Strategy Are:

 It has a long-term direction.

 It defined the scope of an organization’s activities.
 It should match activities with environment.
 It bounded rationality and resources scarcity.
 It has expectation and values.
 It is the basis of company operation, the organization structure and daily operation
policies should all based on the strategy.

Discuss the phases of strategic management?

 Strategy formulation
  Strategy implementation
 Strategy evaluation

Strategic formulation Characteristics

 Strategy formulation includes
 Developing a vision and mission,
 Identifying an organization’s external opportunities and threats,
 Determining internal strengths and weaknesses,
 Establishing long-term objectives,
 Generating alternative strategies,
 Choosing particular strategies to pursue.

Issues in Strategy Formulation

 Strategy-formulation issues include.

 Deciding what new businesses to enter.
 What businesses to abandon.
 How to allocate resources.
 Whether to expand operations or diversify.
 Whether to enter international markets.
 Whether to merge or form a joint venture.
 How to avoid uncertainty.

Strategy Implementation

Strategy implementation requires a firm to establish

 Annual objectives.
 Devise policies.
 Motivate employees.
 Allocate resources so that formulated strategies can be executed.

Strategy implementation includes

 Developing a strategy-supportive culture.

 Creating an effective organizational structure.
 Redirecting marketing efforts.
 Preparing budgets.
 Developing and utilizing information systems,
 linking employee compensation to organizational performance
Strategic management evaluation
 Develop vision and mission statements.
 Establish long term objectives.
 Generate, Evaluate and select strategies.
 Implement strategies Management issues.
 Implement strategies marketing, finance, and accounting.
 Measure and evaluate performance.

How does strategic management typically evolve in corporation?

Strategic management typically evolves in a corporation through a four-step process of

auditing, development, implementation and evaluation. Strategic management changes
companies via a collective system of processes, plans and strategies that a company uses to order
and coordinate resources and actions and align them with its missions and goals.

The main purpose of strategic management is to transform the static aspects of goals, missions
and aims into a practical, sustainable plan, while still allowing for flexibility and evolution based
on an ever-changing market environment. Another term for this is strategy execution, focusing
on a company's ability to internally digest feedback and strategically evolve appropriately.

Most methodologies for strategic management follow the same series of steps. First, the
company audits itself, developing a complete understanding of its current scenario.

Next, the directors or an external company develop a high-level strategy, focusing on the goals
of the company.

Third, this high level-plan is translated into actionable steps, rules and policies that are applicable
across the company.

Finally, an evaluation or sustained phase begins. This is an ongoing phase where continuous
refinement, analysis, auditing and evolution takes place, in order to adapt to a changing market
or changing goals within the company. This phase focuses on the company's culture,
performance and communication, among other aspects.