Strategic Management-

Introduction.
Capt Dr Abdul Azees P,
Farook College
The Concept of Strategy
• The term strategy is derived from a Greek word strategos, which
means generalship- the actual direction of military force.
• According to Alfred D Chandler strategy is the determination of the
basic long term goals and objectives of an enterprise and the
adoption of the courses of action and the allocation of resources
necessary for carrying out these goals.
• Connected to the strategic positioning of a firm, making trade-offs
between its different activities, and creating a fit among these
activities.
• It is a kind of mgt activity.
Strategic Management- Definition
• It is defined as the dynamic process of formulation, implementations,
evaluation and control of strategies to realise the organisation‘s
strategic intent.
• Strategic management is concerned with deciding on strategy and
planning how that strategy is to put into effect.
• Strategic management is primarily concerned with relating the
organisation to its environment, formulating strategies to adapt to the
environment and assuring the implementation of strategies taken
place.
Importance of Strategic Management
• Due to change: Forecasting change and pro-acting to the change is
inevitable.
• To provide guidelines: To minimise conflict between job performance
and job demands.
• Developed field of study:
• Probability for better performance:
• Systematic Business decisions:
• Improves communication:
• Improves allocation of resources.
Strategic Management Process
• Identify corporate vision, mission, objectives and goals.
• Analyse the corporate external environment to identify opportunities
and threats.
• Scan the corporate internal environment to identify strengths and
weaknesses of the company.
• Craft the strategic alternatives.
• Select the best corporate strategy.
• Implement the strategy.
• Evaluate and control the strategic implementation process.
Vision Statement
• Vision statements visualise the future of the company.
• Vision statement answers the question “ what do we want to
become” or “ What can we become”. the vision guides the direction of
the organization's efforts.
• A vision statement describes the company’s purpose, what the
company is striving for, and what it wants to achieve.
• Most writers of vision statements find that it’s a rewarding and
inspiring process. It gives them the chance to articulate the
characteristics that influence the organization’s strategy.
Vision- Examples
• BBC: “To be the most creative organization in the world”
• Disney: “To make people happy.”
• Google: “To provide access to the world’s information in one click”
• IKEA: “To create a better everyday life for the many people”
• Instagram: “Capture and share the world’s moments”
• LinkedIn: "Create economic opportunity for every member of the global
workforce”
• Microsoft: “To help people throughout the world realize their full potential”
• Nike: “To bring inspiration and innovation to every athlete in the world”
Mission Statement
• A mission statement is defined as an action-based statement that
declares the purpose of an organization and how they serve their
customers. This sometimes includes a description of the company,
what it does, and its objectives.

• A mission statement provides perfect clarity behind the “what,” the

“who,” and the “why,” of your company. The best mission statements
are guidelines by which a company operates. Everything you do as a
company should work toward your mission statement.
Mission- Examples
• Tesla- To accelerate the world’s transition to sustainable energy.
• TED- Spread ideas.
• LinkedIn-To connect the world’s professionals to make them more
productive and successful.
• Paypal-To build the web’s most convenient, secure, cost-effective
payment solution.
• Amazon-To be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy
online, and endeavors to offer its customers the lowest possible
prices.”