Strategic Management

Essentials
STRATEGIC MANAGEMENT A COMPETITIVE ADVANTAGE APPROACH
FRED R. DAVID. 16TH EDITION. CHAPTER 1
What Is Strategic Management?

STRATEGIC MANAGEMENT

Long- formulating,
term……… implementing,
and evaluating

 The art and science of formulating, implementing, and evaluating cross-functional decisions that
enable an organization to achieve its objectives
Stage of Strategic Management
Strategy formulation Strategy implementation Strategy evaluation

includes developing a vision and a reviewing external and internal factors

establish annual objectives,
mission, that are the bases for current strategies,

identifying an organization’s external

devise policies, measuring performance,
opportunities and threats,

determining internal strengths and

motivate employees, taking corrective actions.
weaknesses,

allocate resources so that formulated

establishing long-term objectives,
strategies can be executed.

generating alternative strategies,

choosing particular strategies to pursue

Key Success to Achieve Strategic
Menegement
Vision
What do we want to become?

Mission
What do we want to become?

External opportunities
and external threats economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and
competitive trends and events that could significantly benefit or harm an organization in the future

Internal strengths and an organization’s controllable activities that are performed especially well or poorly. They arise in the
internal weaknesses management, marketing, finance/ accounting, production/operations, research and development, and
management information systems (MIS) activities of a business

the means by which long-term objectives will be achieved. Business strategies may include geographic
Strategies expansion, diversification, acquisition, product development, market penetration, retrenchment,
divestiture, liquidation, and joint ventures.
The Strategic Managemen Model
Benefit of Engaging in Strategic
Management
 Financial Benefits
 Nonfinancial Benefits

Competitive Advantage
PROFIT / CUAN
How To Gain
Compatitive
Advantages