Basic Concepts of

Strategic Management
BASIC CONCEPTS OF STRATEGY

 Competitive advantage
 Sustainable competitive advantage
 Strategy
 Strategic intent
 Strategic management
 STRATEGIC MANAGEMENT

• INTERNAL AND EXTERNAL

ENVIRONMENT SCANNING
• STRATEGY FORMULATION
• STRATEGY IMPLEMENTATION
• EVALUATION AND CONTROL
Strategy Formulation
Vision & Mission
Long-Term Objectives
Internal Strengths & Weaknesses

External Opportunities & Threats

Alternative Strategies

Strategy Selection
Strategy Implementation

Annual Objectives

Policies and Procedures

Employee Motivation

Resource Allocation
Evaluation and Control

Internal Review

External Review

Performance Metrics

Corrective Actions
Basic Elements of the Strategic Management Process
 BENEFITS OF
STRATEGIC MANAGEMENT
•Proactive in shaping firm’s future
•Initiate and influence firm’s activities
•Formulate better strategies

•Financial rewards
•Nonfinancial rewards
1. Poor reward structures
2. Chief executives’ orientation
3. Waste of time
4. Too expensive
5. Laziness

6. Content with success

7. Fear of failure
8. Overconfidence

9. Prior bad experience

10. Fear of the unknown
11. Suspicion

12. Self-interest
Thank you for listening.

SARAH JANE B. ORILLOSA, MBA