FUNDAMENTAL CONCEPTS OF

STRATEGIC MANAGEMENT, IN
GENERAL, AND HUMAN
CAPITAL, IN PARTICULAR
María Del Carmen Gómez
Dayana Valentina Figueroa
Laura Alejandra Gómez Coronado
Edward Pongutá
 STRATEGIC MANAGEMENT,
GLOBALIZATION AND
SUSTAINABILITY
In this globalized business
environment, competitiveness is
built on the basis of constant
innovation and human
commitment. Organizations that
manage to merge these two
dimensions will be better prepared
to navigate the turbulent waters of
globalization and achieve
sustainable success in today's
changing economic landscape.
 BUSINESS STRATEGY AND
STRATEGIC PLANNING
The concept of strategy has its origins in the military field
and is the basic idea of competition, that is, acting against
the adversary to achieve certain objectives

Joint determination of the company's objectives and the

lines of action to achieve them, that is, it expresses what
the company wants to do in the future

It is the process of documenting and establishing the

direction of the organization, evaluating where it is and
where it is going
 STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT FOCUSES ON LONG-TERM DECISION MAKING IN AN
ORGANIZATION.
• FOUR ESSENTIAL COMPONENTS THAT DEFINE A STRATEGY.

1: SCOPE OR FIELD 2: DISTINCTIVE

OF ACTIVITY:
It delimits the company's
actions in terms of products
and markets
Evolution of the portfolio of
activities considering
markets, technologies and
needs.
CAPACITIES OR
COMPETENCIES:
It includes resources and skills
(physical, technical, financial,
human, technological,
organizational, managerial).
Development and strategic
assignment to make the
company competitive.

3:COMPETITIVE 4: SYNERGY
ADVANTAGES: Looks for a positive synergistic effect
through the exploitation of
Features that provide an
interrelationships.
advantageous position over
Balance between areas of activity,
competitors.
distinctive competencies and
Result of key resources, distinctive
competitive advantages.
competencies, privileged access to
positive changes between these
raw materials, advanced technology,
components to achieve maximum
patents, specialized personnel,
effectiveness.
motivating culture or leadership.
Synergy:
 EVOLUTION OF
STRATEGIC
MANAGEMENT
The emergence of the concept
of strategy also entails the
emergence of strategic
planning, a crucial step
towards the development of
strategic management.
Strategic planning focuses
on business-environment
relationships, neglecting
necessary internal changes,
and gives priority to
strategy formulation
without considering
execution and control.
Therefore, strategic
management appears with
the objective of covering the
entire strategic problem,
where the formulation
phase of the business
strategy basically includes
the approach of strategic
planning.
 PHASES OF STRATEGIC MANAGEMENT
FOUR INTERRELATED PHASES: ANALYSIS, FORMULATION,
IMPLEMENTATION AND CONTROL OF THE STRATEGY.
PHASE 1: STRATEGIC PHASE 2: CHOICE
ANALYSIS:
Understand the strategic position of the
Generation of strategic options.
company.
Evaluation of options in the
Expands strategic planning to include
context of strategic analysis.
technical-economic and socio-political-
Strategy selection based on
cultural variables.
relative advantages and financial
Strategy results from the interaction
considerations.
between environment, internal resources
and expectations of interested parties.
Strategy Formulation.

PHASE 3: IMPLEMENTATION PHASE 4: STRATEGY CONTROL

OF THE STRATEGY:
Implementation of the defined strategy.
Translating actions into strategic and
tactical plans, programs and budgets.
Specification of actions in different areas
and organizational levels.
Based on system feedback.
Focused on preventive rather than corrective
actions.
Internal Key Factors:
Assigned tasks and responsibilities.
Information and communication system.
Organizational structure, leadership and
organizational culture.
Critical Phases of the Strategic Business Process.
 LEVELS OF THE STRATEGY

CORPORATIVE STRATEGY BUSINESS STRATEGY FUNCTIONAL STRATEGY

Corporate strategy involves
It is about
choosing activities to Marketing strategy.
determining how to
engage in, running Production strategy.
best develop the
diversified businesses, and Financing strategy.
activity or activities
seeking unity through the
corresponding to Research and development
integration of
each strategic unit strategy.
complementary activities
Human resources strategy.
DEFINITION AND IDENTIFICATION
OF STRATEGIC UNITS
The strategic business units are divisions or
units within a company that can be managed
independently in strategic terms. These units
often have their own competitors, customers,
and strategic objectives. Identifying involves
analyzing the company's structure to
determine which divisions or units have their
own distinct markets and competitors. Once
identified, specific strategies can be developed
for each unit, allowing the company to better
adapt to the needs and challenges of each
market in which it operates.
 STRATEGIC GROUPS
Strategic groups are sets of companies
within an industry that follow similar
strategies and directly compete with each
other. In the context of strategic
management, the concept of strategic
groups is useful for understanding the
competitive dynamics within an industry.
Companies belonging to the same strategic
group tend to face similar challenges and
pressures in terms of competition,
innovation, market positioning, and other
strategic aspects
 EXAMPLE
Let's take the airline industry as an example.
In this industry, we could identify different
strategic groups based on factors such as
cost focus (low-cost airlines vs. full-service
airlines), geographical coverage (regional
airlines vs. international airlines), or focus on
specific market segments (premium airlines
vs. budget airlines).
Each of these strategic groups would face
specific competitive challenges and
pressures within the airline industry, which
would influence their strategic decisions,
such as pricing, routes, customer service,
among other aspects.
 THE IMPORTANCE OF HUMAN
CAPITAL IN STRATEGIC
MANAGEMENT
Human capital plays a fundamental role in the
strategic management of an organization. The
importance lies in the fact that the people who
are part of a company are the ones who drive the
execution of strategies and contribute
significantly to achieving organizational
objectives.

In the context of strategic management, human

capital refers not only to the number of
employees, but also to their skills, knowledge,
experience, and commitment to the company's
mission and vision. An organization's ability to
recruit, retain, develop, and motivate its human
talent directly impacts its ability to successfully
implement the outlined strategies.
 THE ORIGIN AND
EVOLUTION OF HUMAN
CAPITAL MANAGEMENT
The term human capital emerged in the 18th century
when economic theorists such as Adam Smith raised
the need to focus not only on technical factors but
also on human factors when establishing the rules for
the proper functioning of a company or organization.
economic system in general.

In this way, human capital appeared as one of the

most important elements to take into account since it
is responsible for executing the tasks and skills
specific to each economic area. Thus, the more
valuable a company's human capital is (that is, the
better trained or prepared it is for the specific tasks
assigned to it), the better the results of that
institution will be.
 STRATEGIC KNOWLEDGE-
BASED HUMAN CAPITAL
MANAGEMENT
Knowledge is one of the most important elements
that companies have, so effective management of it
is essential for the functioning and growth of
organizations, as well as for the professional
development of all team members. Companies that
are not aware of this can miss opportunities; Taking
advantage of all the benefits that knowledge
management offers can help companies improve
their products, optimize processes, offer new
services and streamline tasks, among other aspects.

In addition to contributing to the efficiency of

different processes that are part of the company's
daily life, correct knowledge management is
closely related to people management.
 Activity
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ST___ATE____IC MAN___GEM___NT
H__M___N CAP___TAL
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STR____TEGY L___V___LS
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