What is Strategic Management?

• Strategic Management consists of the

formulation and implementation of the major
goals and initiatives taken by an organization's
top managers on behalf of owners, based on
consideration of resources and an assessment
of the internal and external environments in
which the organization operates. They also
developed numerous models and frameworks
to assist in strategic decision-making.
Application
 Formulation
• Formulation of strategy involves analyzing the environment in which the organization
operates, then making a series of strategic decisions about how the organization will
compete. Environmental analysis includes :
• Remote external environment: including the political, economic, social, technological,
legal and environmental landscape.
• Industry environment: such as the competitive behaviour of rival organizations,
customers’ behaviour.
• Internal environment: regarding the strengths and weaknesses of the organization's
resources (i.e., its people, processes and IT systems).
• Strategic decisions are based on insight from the environmental assessment and are
responses to strategic questions about how the organization will compete, such as:
+What is the organization's business?
+Target consumers?
+Where are the customers and how do they buy?
+What distinguishes the company from its competitors, customers and other
stakeholders?
 Implementation

• The second major process of strategic management

is implementation, which involves decisions
regarding how the organization's resources (i.e.,
people, process and IT systems) will be commenced
towards the objectives. Implementation results in
how the organization's resources are structured
(such as by product or service or geography),
leadership arrangements, communication,
incentives, and monitoring mechanisms to track
progress towards objectives, among others.
Strategic Planning Technique
• SWOT analysis (or SWOT matrix) 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.
It’s purpose is to specify the objectives of the
business or project and identify the factors
that could be used to achieving those
objectives. Users of a SWOT analysis often ask
and answer questions to get meaningful
information to make the most out of the tool.
• The four parameters the technique are:
• Strengths: characteristics of the business or
project that give it an advantage over others.
• Weaknesses: characteristics of the business
that place the business/project at a
disadvantage relative to others.
• Opportunities: elements in the environment
that the business/project could exploit to its
advantage.
• Threats: elements in the environment that
could cause trouble for the business/project.
• Drawbacks:
- SWOT has been described as the tried-and-true
tool of strategic analysis, but has also been
criticized for its limitations. SWOT is intended
as a starting point for discussion and cannot,
in itself, show managers how to achieve a
competitive advantage. Because the SWOT
analysis is a snapshot at a particular moment
in time, so the analysis might become
irrelevant due to the fact that the
environments are rapidly changing.
• 1. Strategic Management is the implementation of the top managers to
organize resources of their organization to achieve its goals and objectives.
• 2. Strategic Management is the process of managing, planning, and
analyzing through a set of stages to complete organizational goals.
• 3. Corporate Strategy is a series of actions the corporate takes to achieve
competitive advantage.
• 4. Competitive Strategy is the long term plan of a particular company in
order to gain competitive advantage over its competitors in the industry.
• 5. Current Strategic management issues are the problems that managers
utilize strategic plans to overcome.