The Future

Strategic Management
Module 1
Dr . Amr Sukkar PhD, M Phil, MBA
 Agenda

01 Understanding the
benefit of strategic
02 Explain how globalization
and environmental
management sustainability influence
strategic management

03 Understand the basic

model of strategic
04 Understand strategic
decision making modes
management and its
components
What is Strategy ?
Art of “troop leader; office of
general, command, generalship”
is a high-level plan to achieve one
or more goals under conditions of
uncertainty.

In the sense of the "art of the

general", which included several
subsets of skills including
"tactics", logistics etc
 Limited
Resources
“Scarce
Economic
Problem
Resources”

Unlimited Wants
and Needs
 What is strategic
management ?

Or

What is the different between

Business plan and strategic
plan ?
Strategic Management: a set of managerial
decisions and actions that determines the long-run
performance of a corporation.

Includes:
• Internal and external environment scanning
• Strategy formulation
• Strategy implementation
• Evaluation and control
Prentice Hall, Inc. ©2009
Benefits of Strategic
Management ?
 Benefits of Strategic Management:

• Clearer sense of strategic vision for the firm

• Sharper focus on what is strategically important
• Improved understanding of a rapidly changing
environment
• Improved organizational performance
 Additional Benefits of Strategic
Coma Butterfly

Management: AD Vanishing Elephant

• Achieves a match between the organization’s

R
environment and its strategy, structure and
processes
• Important in unstable environments
• Strategic thinking
• Organizational learning
 Basic Elements of Strategic
Management
1. Environmental scanning
2. Strategy formulation
3. Strategy implementation
4. Evaluation and control
Prentice Hall, Inc. ©2009
Prentice Hall, Inc. ©2009
 Basic Elements of Strategic
Management
Environmental Scanning is the monitoring,
evaluating and disseminating of information from
the external and internal environments to key
people within the organization
Prentice Hall, Inc. ©2009
Basic Elements of Strategic Management



Strategy Formulation: the development of long-
range plans for the effective management of
environmental opportunities and threats in light
of organizational strengths and weaknesses
(SWOT) 

 SWOT

S W
Strategies

O T
Basic Elements of Strategic Management

Mission- the purpose or reason for the

organization’s existence

Vision- describes what the organization

would like to become

Objectives- the end results of planned activity

Basic Elements of Strategic Management
Strategies- form a comprehensive master plan that
states how the corporation will achieve its
mission and objectives
– Corporate
– Business
– Functional

Policies- the broad guidelines for decision making

that links the formulation of a strategy with its
implementation
Hierarchy of The Strategy

Prentice Hall, Inc. ©2009

Basic Elements of Strategic Management

Strategy implementation: the process by which

strategies and policies are put into action through
the development of:

• Programs
• Budgets
• Procedures
 Basic Elements of Strategic
Management
Evaluation and control: the process in which
corporate activities and performance results
are monitored so that actual performance can
be compared to desired performance
 Basic Elements of Strategic
Management

Performance: the end result of organizational

activities

Feedback/Learning Process: revise or correct

decisions based on performance
Triggering event
Triggering event: something that acts
as a stimulus for a change in strategy
and can include:

• New CEO
• External intervention
• Threat of change of ownership
• Performance gap
 What Makes a Strategic Decision?
Strategic decision making focuses on the long-
run future of the organization

Characteristics of strategic decision making

include:

•Rare
•Consequential
•Directive
 Strategic Decision Making Process:
1. Evaluate current 5. Analyze strategic
performance results (SWOT) factors
2. Review corporate 6. Generate, evaluate and
governance select the best
3. Scan and assess the alternative strategy
external environment 7. Implement selected
4. Scan and assess the strategies
internal corporate 8. Evaluate implemented
environment strategies
Prentice Hall, Inc. ©2009
Prentice Hall, Inc. ©2009
 The sustainability concept

Profitability ECO Products

 The sustainability concept
The concept of “sustainable” businesses is relatively
new, this concept was highlighted during the 1992
United Nations Conference on Environment and
Development in Rio de Janeiro.

Since this summit, practices converge around a

concern for the environment, economic growth and
the development of the worlds poor (Stern, 2006).
 The sustainability concept
68% of top 250 global companies listed fortune
500 embraced corporate responsibility and
sustainability as primary objective “Colbert,et al,”
 

Responsibilities of a Business Firm


Characteristics of Sustainability

• Environmental

• Economic

• Social
Impact of Environmental Sustainability:
Environmental Sustainability: the use of business
practices to reduce a company’s impact on the
natural, physical environment
 Video (1)

Coca Cola Life

https://www.youtube.com/watch?
v=aGfdubLAtY8&t=19s
 Case Study

“Green Building”
Impact of Environmental Sustainability
Risks of Climate Change include:

• Regulatory risk
• Supply chain risk
• Product and technology risk
• Physical risk

1-10
 Responsibilities of a Business Firm

Social Responsibility: proposes that a private

corporation has responsibilities to society that
extend beyond making a profit
Responsibilities of a Business Firm

Friedman’s traditional view of a business firm:

• Argues against the concept of social
responsibility
– Primary goal of business is profit
maximization not spending shareholder
money for the general social interest
 

Responsibilities of a Business Firm

Social capital refers to the goodwill of key
stakeholders and provides a company with:

• The ability to enter • The ability to charge premium

local and prices
international markets • Improved relationships with
suppliers and distributors
• Enhanced reputation
• The ability to attract better
• Competitive talent
advantage • Goodwill in the eyes of public
• Cost savings officials
 Corporate Stakeholders
Stakeholders have an interest in the business and affect
or are affected by the achievement of the firm’s
objectives

Enterprise strategy- articulates the firm’s ethical

relationship with its stakeholders
Thank You
 Amr Sukkar PhD, M Phil, MBA

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