UNIT I

TOPIC 4
Strategic Management Concept and
Process
Dr. Pooja
Associate Professor
RDIAS
Strategic planning is the approach used in forming
an organization’s direction (e.g., its vision, mission
and priorities).
A strategic planning is an activity, which determines
the objectives and considers both internal and
external environment to design, implement, analyze
and adjust the strategies, to gain competitive
advantage.
It stresses on making optimal strategic decisions.
Strategic planning is a management by plans.
The Basic Planning Process
• Step 1 Situational Analysis
• Step 2 Alternative Goals and Plans
• Step 3 Goal and Plan Evaluation
• Step 4 Goal and Plan Selection
• Step 5 Implementation
• Step 6 Monitor and Control
 Strategic Management

Strategic Management is a top management

function which is employed to set priorities,
concentrate and channelize resources,
reinforce operations, ensuring that the
employees are aligned towards the
achievement of the goals of the organization
and position the organization with respect to
the changing environment. It ascertains
organization’s intent for the next five years.
Strategic Management
Process
 BASIS FOR
STRATEGIC PLANNING
COMPARISON
Meaning Strategic Planning is a future
oriented activity which tends to
determine the organizational
strategy and used to set priorities.
STRATEGIC MANAGEMENT
Strategic Management implies a
bundle of decisions or moves
taken in relation to the
formulation and execution of
strategies to achieve
organizational goals.

Stresses on It stresses on making optimal It stresses on producing strategic

strategic decisions. results, new markets, new
products, new technologies etc.

Management Strategic planning is a Strategic management is a

management by plans. management by results.

Process Analytical process Action-oriented process

Function Identifying actions to be taken. Identifying actions to be taken,

the individuals who will perform
the actions, the right time to
perform the action, the way to
perform the action.