STRATEGIC MANAGEMENT PROCESS

SUBMITTED BY: KOMAL VERMA 09816603909

and strategy. What is the strategic management process? The process by which managers choose a set of strategies for the enterprise to pursue its vision. near term and long term performance targets. Why do some firms succeed while others fail? A central objective of strategic management is to learn why this happens.INTRODUCTION What is strategy? An action a company takes to attain superior performance. . What is strategic plan? It consists of an organization s mission and future direction.

Appearance of fresh opportunities and threats 5. The initiatives of rival firms to grab increased market share 4. Shifting industry and competitive conditions 2. Other significant events .WHY COMPANY STRATEGIES EVOLVE? Because of internal and external events: 1. Newly emerging buyer preferences and requirements 3. Advancing technology 6.

They connect directly with company s strategic vision They need to be competitor focused. will require corrective actions and adjustments in the company s long term direction.a starting point for forming a strategic vision mission statement gives organization its own special identity Objectives represent a managerial commitment to achieving specific performance targets within a specific time frame. objectives.it represents the game plan for moving the company into an attractive business position and building a sustainable competitive advantage Setting objectives Crafting a strategy Implementing and executing the strategy Evaluation performance. improving the competence with which it is executed and showing measurable progress in achieving the targeted results Incumbent on management to evaluate organization s performance and progress Subpar performance or too little progress. and/or strategy . business model. often aiming at unseating a competitor considered to be the industry s best in the particular category An organization s strategy deals with how to make management s strategic vision for the company a reality.5 TASKS OF STRATEGIC MANAGEMENT Developing a strategic vision Effective strategy making begins with a vision of where the organization needs to head The mission statement. as well as important new external circumstance. monitoring new development and initiating corrective adjustments Strategy implementation concerns the managerial exercise of putting the freshly chosen strategy into place Strategy execution deals with the managerial exercise of supervising the ongoing pursuit of strategy making it work.

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

monitoring.EXTERNAL ENVIRONMENT ANALYSIS ‡Identify strategic opportunities and threats in the operating environment ‡The process includes following steps: scanning. forecasting and assessing Immediate (Industry) General environment Competitor environment .

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

INTERNAL ENVIRONMENT ANALYSIS ‡Identify strengths Quality and quantity of resources available Distinctive competencies ‡Identify weaknesses Inadequate resources Managerial and organizational deficiencies .

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

STRATEGIC INTENT AND STRATEGIC MISSION Strategic intent is the leveraging of firm s internal resources. capabilities and core competencies to accomplish the firm s goals in the competitive environment Strategic mission is the statement of the firm s unique purpose and the scope of its operations in product and market terms .

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

financial economies or market power Ac uisitions Downsizing Downscoping Leveraged buyouts (LBOs) business level strategy: 1. Competition response 3. Cross border strategic alliances Network cooperative strategies .Diversifying strategic alliances 2. E uity strategic alliances 3.Cost leadership strategies dynamics and rivalry entails actions and 2.Global 3. Competition reduction 2. Franchising international cooperative alliances: 1. Non e uity strategic alliances Business level cooperative strategy: 1.Differentiation responses to competitive strategies actions taken 3.International integrated cost leadershipdifferentiation strategy International corporate level strategy: 1.Focus by other firms strategies 4. international differentiation strategy 3. international cost leadership strategy 2.STRATEGY FORMULATION BUSINESS LEVEL Competitive STRATEGY: 1. Integrated cost leadership/ differentiation strategies strategic and tactical competitive actions can be taken   COMPETITIVE DYNAMICS: Preferable for seeking a more diversified business strategy Leads to value creation through economies of scope. Joint ventures 2. Synergistic alliances 3. International focus strategy 4. Uncertainty and risk reduction cooperative strategy Corporate level cooperative strategy: 1.Transnational strategy Regionalization   AC UISITION AND INTERNATIONAL RESTRUCTURING STRATEGY: CORPORATE STRATEGIES: International LEVEL STRATEGY: COOPERATIVE STRATEGY: Strategic alliances: 1.Multidomestic strategy 2.

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

executives compensation and multi divisional structure 1 external governance mechanismthe market for corporate control CORPORATE GOVERNANCE ORGANISATIONAL STRUCTURE AND CONTROL Formal configuration that determines what the firm will do and how it will complete its work Business level strategies implemented through functional structures Multidivisional structure in diversification strategy Worldwide geographic area structure for multi domestic strategy Worldwide product divisional structure for global strategies Combination structure to implement transnational strategy STRATEGIC IMPLEMENTATION STRATEGIC LEADERSHIP Required t use t e str tegic gement r cess successfully 6 c mponents: determinig firm s str tegic direction. strategic alliances and acquisitions . emphasizing ethical practices.Relationship among stakeholders used to determine a firm s direction and control its performance 4 internal governance mechanismsownership concentration. innovation and imitation 3 approaches to produce and manage innovation: internal corporate venturing. exploiting nd maintaining core competencies. sustaining an effective organisational culture. and establishing balanced organizational controls. CORPORATE ENTERPRENEURS HIP AND INNOVATION £ £ ¡¦ ¢ ¡ ¢ £ ¡ £¥£¤ 3 kinds of innovative activities: invention. developing uman capital. board of directors.

THE STRATEGIC MANAGEMENT PROCESS The external environment Strategic inputs The internal environment Strategic intent Strategic mission Strategy formulation Strategic actions Strategy implementation Corporate governance Organizational structure and controls Strategic leadership Business level strategy Competitive dynamics Corporate level strategy Acquisition and International Cooperative restructuring strategy strategy strategies feedback Strategic outcomes Strategic competitiveness and above average returns Corporate entrepreneurship and innovation .

Sign up to vote on this title
UsefulNot useful