Strategic Management & Corporate Strategy

Presented by:

Sana Nadeem
Registration no (L1F22MBAM0091)
 TOPIC: Strategic Management & Its Process

Sahrish Rahman
Registration no (L1F22MBAM0107)
 TOPIC: Corporate Management

Maham Yousaf
Registration no (L1F22MBAM0064)
 TOPIC: Types of Corporate Management
STRATEGIC MANAGEMENT:
 STRATEGIC MANAGEMENT

Strategic Management Is A Set Of Management Decisions

And Actions That Determines The Long-run Performance
Of A Corporation. It Includes Environmental Scanning,
Strategy Formulation, Strategy Implementation And
Evaluation And Control To Achieve The Objectives Of
An Organization. ​
Key Terms:

 Analyze and learn from their internal and external environments​

 Establish strategic direction​
 Create strategies that are intended to help achieve established goals​
  Execute those strategies​

Importance of Strategic Management Process:

It can makes a difference in how well an organization performs.
Managers in organizations of all types and sizes face continually changing situations. They
use strategic management to cope with this uncertainty
Strategic Management Process:
Step 1
• Identify the organization’s current mission, goals and strategies.

• External Analysis (Opportunities ,Threats)

Step2

• Internal Analysis (Strengths ,Weakness)

Step 3

• Formulate strategies
Step 4

• Implement strategies
Step 5

• Evaluate results
Step 6
 Steps of Strategic Management
6 STEPS OF STRATEGIC MANAGEMENT WHICH INVOLVES:

1. Identify the mission, objectives, strategies.

Mission: The purpose or reason for the corporation’s existence. It tells who the company is, what they do as well as
what they’d like to become.
Objective: The end results of planned activity. They state WHAT is to be accomplished by WHEN. They should be
quantified, if possible. Should be specific, measurable and obtainable.
Strategy: A strategy is a comprehensive master plan stating HOW the corporation will achieve its mission and
objectives
2. External Analysis (Opportunities &Threats)
 External Analysis is to analyze the organization’s environment.
 Conducting an external analysis Identifying opportunities and threats in order to identify strategic factors which may
require some changes.
 Opportunities are the positive chance and a bright opening seen in the environment. Threats which are risky and
dangerous trends in the external environment
3. Internal Analysis (Strengths & Weaknesses)
 Conducting an internal analysis (i.e., identifying strengths and weaknesses).
 Strengths are the activities performed very well.
 Weaknesses are activities the organization does not do well or do not possess
4. Formulating strategies
 Strategy implementation implies making the strategy work as intended or putting the
organization’s chosen strategy into action.
 Strategy implementation includes designing the organization’s structure, distributing resources,
developing decision making process, managing human resources.
 5. Implementing strategies
 As managers formulate strategies, they should consider the realities of the external
environment and their available resources and capabilities in order to design strategies that
will help an organization achieve its goals.
 Strategy formulation is the process of deciding best course of action for accomplishing
organizational objectives and hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and functional strategies.
 6. Evaluating Results
 Strategy evaluation is the final step of strategy management process.
 The key strategy evaluation activities are: appraising internal and external factors that are
the root of present strategies, measuring performance, and taking remedial/corrective
actions.
 Evaluation makes sure that the organizational strategy as well as it’s implementation
meets the organizational objectives.
Importance of Strategic Management Process:

 He past strategies act as a reference for future decisions that the

organization makes.​
 It results in improved organizational performance.​
 The formulation of plans considers the current market trends and
gives organizations a competitive advantage in the changing market.​
 The step-wise strategic processes make goals achievable.​
 The synchronization of processes, workforce and strategies make sure strategies
align with organizational goals.​
CORPORATE MANAGMENT
Corporate Strategy.
A corporate strategy is a long-term plan that outlines clear goals for a company. While
the objective of each goal may differ, the ultimate purpose of a corporate strategy is to
improve the company. A company's corporate strategy may be to focus on sales,
growth or leadership.
For example:
 A business might implement a corporate strategy to expand its sales to different
markets or consumers.
Types of Corporate Strategies:
Growth strategy:
“A growth strategy is a plan or goal for the company to create considerable
growth in different areas. It could refer to overall growth, but it could also
encompass only specific areas, such as sales, revenue, following or company
size.”
 Companies can accomplish growth strategies through concentration or diversification .
 Types of growth strategies:
Concentration: Concentration refers to a company developing the core of its business, such as a bookstore
investing in selling more books.
 A company using concentration is Bose Corporation of Framingham, Massachusetts, which
focuses on developing innovative audio products and has become one of the world’s leading
manufacturers of speakers for home entertainment, automotive, and pro audio markets with sales of
more than $2 billion.

Vertical integration: A company takes complete control over one or more stages in the
production or distribution of a product.
 eBay owns an online payment business that helps it provide more secure transactions and control
one of its most critical processes.
Diversification: It’s a competitive Strategy used to expand firms operation by
adding market products and services.

Types:
i. Related diversification happens when a company combines with other companies in
different, but related, industries.
ii. Unrelated diversification is when a company combines with firms in different and
unrelated industries.
 Stability Strategy:
“It is the type of corporate strategy in which an organization continues to do what it is currently
doing.”
For Instance:
This strategy include continuing to serve the same clients by offering the same product or service,
maintaining market share, and sustaining the organization’s current business operations. This doesn't that
organization has stopped growing.

Reasons to Adopt Stability strategy:

 The organization is satisfies with their current level of sales and profit.
 They are satisfied with their current level of performance.
 The economic condition is very dynamic.
 It gives the company time to strengthen its current position and plan ahead.
Renewal Strategy:
“When a corporate strategy designed to address declining performance then this type of
strategy is called renewal strategy.”

 Its also known as turnaround strategy.

 It uses analyses and planning to save the troubled companies and bring it back to solvency.
 In corporate renewal, the management reviews failure causes analysis and SWOT analysis to
determine why the company is failing.
 Once analysis is completed, a long term strategic plan and restricting plan are created.
 Once approved, turnaround professionals begin to implement the plan, continually reviewing its
progress and make change to the plan as needed to ensure the company returns to solvency.
Retrenchment Strategy:

To achieve financial stability, a retrenchment strategy entails eliminating all the goods
and services that aren’t profitable for your company.
 It also entails removing your company from market where it no longer survive.
 It leads to the sale of asset like production line and dismissal of personnel.
Thank you