Defining Strategic Management

* Strategic Management - consist of the analyses, decisions, and actions an organization undertakes
in order to create and sustain competitive advantages.It is the integrative management field
combines analysis, formulation and implementation in the quest for competitive advantage.

* Strategy - is a set of goal - directed actions a firm takes to gain and sustain superior performance
relative to competitors. A good strategy need to start with a clear and critical diagnosis of the
competitive challenge.
Process of Strategic Management
1. Analysis of strategic goals (vision, mission and strategic objectives) along with the internal and
external environments of the organization
2. Strategic decisions - these decision broadly speaking, address 2 basic questions,
* what industries should we compete in?
*How should we compete in those industries?
3. Actions must be taken. Firms must take necessary actions to implement their strategies - the
ideas, decisions, and actions that enable a firm to succeed
TERMS IN STRATEGIG MANAGEMENT
* Human Resource Management (HRM) - is that part of management process that specializes in the
management
* Strategy - is traditional, long term planning that denotes an activity that top managers perform in
order to accomplish organizational goals.
* Dynamism-the quality of being characterized by vigorous activity and progress of a certain economy
or organization.
*Hyper competition - is a term that refers to situation in the market at a time when technology or
supplies of the companies are so new that the standards and rules of mutual rivalry are still produced,
thus,competitive advantages arise, however they are not sustainable.
* Hyper- competition is a product of globalization- In strict sense, Hyper - competition is a situation
where both GLOBALIZATION and TECHNOLOGY collaborate to create a heightened cut throat
competition.
*Management - is the process of planning, decision making, organizing, leading, motivation and
controlling the human resources, financial, physical and information resources of an organization to
reach its goal effectively and efficiently.
*Employee - is someone who gets paid to work for a person or company. Workers don’t need to work
full time to be considered employees. They
* Organizational Direction- is establishing a mission statement and key objectives for the
organization.
*Environmental Analysis - concerns analyzing the external environment to identify possible
opportunities and threats.
*Individual Analysis-is conducting internal organizational analysis to examine its strength and
weaknesses and nature of current management systems, competencies and capabilities
*Strategic Analysis - is a process that involves researching an organization’s business environment
within which it operates. It is essential to formulate strategic planning for decision making and
smooth working of that organization.
* Strategic decision - making -are decisions that are made according to a company’s goals or
missions.These decisions could take the company into a new directions that may or may not succeed.

*Strategy formulation - is setting specific goals, examining possible choices/alternatives to achieve

organizational objectives and goals.
*Strategy Implementation - is the adoption / implementation of chosen goals.
*Strategy Evaluation - regular evaluation of all the terms of strategic management.
* Competitive advantage - refers to factors that allow the company to produce goods and services
better or more cheaply than its rivals
* Strategic Performance - management is comprehensive approach to helping business achieve their
goals.It begins with a company’s strategic plan and goes from there all the way through to the
employees who support that plan .
*Strategic Planning - is the process of documenting and establishing a direction of your small business
by assessing both where you are or where you’re going
STRATEGIC PLANNIG EXHIBITS THE FF:
1. It generates the blueprint of the organization
2. Process of developing strategies that will fir on the organization
3. It is proactive because it anticipates the future
4. It is intricately interwoven within the managerial functions
5. It supports the management and employee participation towards organizational goal.
Types of Strategic Planning
1,.Medium/ long range plan - prepared the context of coming three to five, ten or more years.It
describes the major factor of forces that affects organizational objectives, strategies and resources.
2. Annual / yearly plan succinctly describes the organization present situation and the budget.
EXAMPLE OF MEDIUM/ LONG RANGE PLAN
1. Hire the new marketing employees over the next five months
2. Increase traffic on your company’s blog
3. Implement monthly giveaway for customers on social media.
4. Begin an ‘’ Employee of the Month” award program
5. Select a charity to begin sponsoring
6. Create a profile on a new social media channel
7. Increase social media posting to three times a week
EXAMPLE OF ANNUAL/YEARLY PLAN
1. Annual planning generates efficiency because it circles around performance
2. It helps to define what is critical to achieving over the year
3. It delivers clear leadership to employees and it helps to keep workforce united
4. Employees gain a clear sense of direction in their department and roles.
* To help the organization achieve strategic direction, they need to articulate and have commonly
VISION, MISSION, and GOALS.
*Organizational Vision
- a vision is a clear, comprehensive photograph of an organization at some point in the future. It
provides direction because it describes what the organization needs to be like, to be successful within
the future.
*Mission statement- is a short statement of why an organization exists, what it’s overall goal is,
identifying the goal of its operation, what kind of product or service it provides, its primary customers
or market and its geographical region of operation.
Organization Objective and Goals
-to operationalize the mission statement, organization goals and objectives are defined.
* Human Resource Department -is the one that monitors the culture of the organization, is
responsible for recruiting the top workforce, recommend market based salaries, and as well as
researches, recommends and implements employee benefits program that attracts and retain the
best employees.
*Financial Resources - is a term covering all financial funds of the organizations. From an economic
perspective financial resources are the part of the organization’s assets (property)
* Finance - is one type of resource, respectively, that inputs into the production process.
* Facilities and Equipment - refers to a re- inspection station housed in a building having garage type
entrance and one more service bays, as well as, the materials needed for motor vehicle re- inspectors
to perform vehicle inspections.
*SWOT Analysis - is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities and threats related to business competition or project planning.