STRATEGIC

MANAGEMENT
WHAT IS STRATEGY?
 A company’s strategy consist of the set of competitive
moves and business approaches that management us
employing to run the company.
 Strategy is management’s GAME PLAN
ATTRACT AND PLEASE CUSTOMERS
STAKE OUT MARKET POSITION
CONDUCT OPERATIONS
COMPETE SUCCESSFULLY
ACHIEVE ORGANIZATIONAL OBJECTIVES
WHY ARE STRATEGIES NEEDED?

 Toproactively shape a company’s business will

be conducted
 Toknow the independent actions and
decisions of managers and employees into
coordinated, company wide game plan
STRATEGIC MANAGEMENT
Isan art and science of
formulating, implementing and
evaluating cross functional
decisions that enable an
organizations to achieve its
objectives.
CHARACTERISTIC OF STRATEGY
 Strategy
is traditionally meant to be grand
plan made in the light of what is believed an
adversary might or might not do.
 Strategyderives its relevance given from the
existence competition in business
CHARACTERISTIC OF STRATEGY

 It is done on presumption of the

existence of a negative scenario
 It also connotes general program of
action and deployment of emphasis and
resources to attain comprehensive
objectives
A process of deciding on objectives of the
organization, on changes in these objectives
on the resources used to attain these
objectives use and disposition of these
objectives, use and disposition of these
resources
 Involvesdetermination of the basic long term
goals and objectives of an enterprise and the
adoption of courses and the allocation of
resources necessary to carry out those goals
 Decision about how to use available
resources to secure a major objective
in the face of obstruction
 Unlike policy, strategy implies actions
and guides decision making, spelling out
directions to be taken
Bases of Policies and Strategies
 Legal mandate refers to formulation
policies on the basis of the provision of
the charter or legal basis
 Vision and mission statement refers to
the leadership bias as well as sense of
direction and mission
Bases of Policies and Strategies

Specific objectives are the

corporate objectives purposely
develop for the organization
Programs and policies set by the
organizations policymaker (board
of directors and top management)
Approaches to Identify Policies and
Strategy
 Policy/strategy
profile involves systematic
examination of present company policy/strategy
 Gap analysis an examination of whether an end
that has been established is likely to be achieved
 Competitive strategy analysis involves thorough
analysis of forces in a firms environment and
searching for an alternative option
Three Level of Strategy

Corporate Level
Business Level
Functional Level
Components of these Strategic
Management Model
 Profitability
 Return on investment
 Competitive position
 Technological leadership
 Productivity
 Employee relationship
 Public responsibility
 Employee development
STRATEGIC DECISION
 Isthe most important in business specially in
decision making
 Strategic decision making is about choosing
the best path to success. For instance, if
you're starting a new business, you need to
consider factors like cost, time and the target
market