STRATEGIC

MANAGEMENT
Md. Ahsan Ullah
Bangladesh Bank
Strategic Management: Concept
■ A strategy is an action that managers take to attain one or more of
the organization’s goals.

■ A strategy is basically a plan of action ie. Action plan.

■ Strategic management is that set of managerial decisions and

actions that determines the long run performance of a corporation.
(T. L. Wheelen & J. D. Hunger)

■ Strategic Management is about identifying and describing the

strategies that managers can pursue to attain superior performance
and a competitive advantage for their organization.
Contd…..

■ Profitability and sustained competitive advantage are the key to

Strategic Management.

■ The nature of strategic management process is the processes by which

managers choose a set of strategies for a company that will allow it to
achieve superior performance. (W. L. Hill)

■ Strategic Management refers to the managerial process of forming

strategic vision, setting objectives, crafting a strategy, implementing and
executing the strategy, and then over time initiating whatever corrective
adjustments in vision, objectives, strategy, and execution are deemed
appropriate. Thomption)
Contd…..
■ So, five tasks of Strategic management:

■ Forming a strategic vision, mission, values

■ Setting objectives

■ Crafting a strategy

■ Implementing the chosen strategy

■ Evaluating performance and initiative corrective

adjustments

.
Contd……..
Strategic vision is a roadmap of company’s future –

- providing specifics about technology and customer focus,

- the geographic and product market to be pursued,

- the capabilities it plans to develop, and

- the kind of company that management is trying to create

Contd……
■ A company’s strategy consists of the combination of competitive
moves and business approaches that managers employ to please
customers, compete successfully, and achieve organizational
objectives. (Thompson)

■ Strategic Management, in fact, emphasizes monitoring and

evaluating opportunities and threats in the lights of a
corporation’s strengths and weaknesses (SWOT).

■ Broadly Speaking, after developing the vision, strategic

Management dwells on :
Contd…….
■ Environmental scanning ( both external and internal)

■ Strategy formulation

■ Strategy implementation

■ Evaluation and Control

Strategic Process
■ 1. Developing a strategic vision of the company’s long term
direction, a mission that describes the company’s purpose, a set
of values to guide the pursuit of the vision and mission.

■ 2. Setting objectives and using them as yardsticks for measuring

the company’s performance and progress.

■ 3. Crafting a strategy to achieve the objectives and move the

company along the strategic course that management has
Contd……….

■ 4. Executing the chosen strategy efficiently and effectively.

■ 5. Monitoring developments, evaluating performance, and

initiating corrective adjustments in the company’s vision and
mission, objectives, strategy, keeping in view actual changing
conditions, new ideas, and new opportunities.