Megrey’strategic management

MODULE 1
The
... Nature of Strategic Management
Nature of strategic management

 strategic management is that firms need to

formulate strategies to take advantage of
external opportunities and to avoid or reduce the
impact of external threats. For this reason,
identifying, monitoring, and evaluating external
opportunities and threats are essential for
success.
 • The Characteristics of Strategic
Management

• 1.Top management involvement.

2.Requirement of large amounts of resources.
3.Affect the firms long-term prosperity.
4.Future-oriented.
5.Multi-functional or multi-business 6.consequences.
7.Non-self-generative decisions.
 Features of Strategic Management

• Conscious Process. Strategies is a product of the developed conscience and

intellect that we humans proudly possess and employ
• Requires Foresight
• Dependent on Personal Qualities
• Goal Oriented Process
• Facilitates decision making
• Primary Process
• Pervasive Process
• Allows for Risk Management
Key Characteristics of an Effective Business Strategy

• They are Not Tactical. People often get a strategy mixed up with
a tactic
• They are Actionable. Strategic goals are achievable through
tactics
• They are Clear. Employees should understand exactly what their
organization's strategy is to achieve it successfully
• They Include a Business Plan
• They Don't Change Much
The Advantages of Strategic Management

• Discharges Board Responsibility

• Forces An Objective Assessment
• Provides a Framework For Decision-Making
• Supports Understanding & Buy-In
• Enables Measurement of Progress
• Provides an Organizational Perspective
• The Future Doesn't Unfold As Anticipated
• It Can Be Expensive
 resources

• slideshare.net › earlstevens58 › 27-nature-of-strat..

www.geektonight.com › what-is-strategic-management-
•  www.managementstudyhq.com › what-strategic-manage
• ugn.com › key-characteristics-of-an-effective-business-str..