Strategic management is not a box of tricks or a bundle of techniques. It is analytical and commitment of resources to action.

Peter Drucker

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The task of crafting, implementing, and executing the company strategies are the heart and soul of managing a business enterprise.

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A company s strategy is the game plan management is using to stake out a market position, conduct its operations, attract and please its customers, compete successfully, and achieve organizational objectives.

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In crafting strategy management is saying Among all paths and option we could have chosen, we have decided to move in this direction, focus on these markets and customer needs, compete in this fashion, allocate our resources and energies in these ways, and rely on these particular approaches to doing business.

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Business Model. A term widely applied to management s plan for making money in particular business. Strategy. Relates to company s initiatives and business approaches (irrespective of financial and competitive outcomes it produces),

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Why need strategy. 1.There is compelling need for managers to proactively shape who the company business will be conducted. 2. There is equally compelling need to mold the efforts and decisions of different divisions, departments, managers, and groups into a coordinated ,compatible whole.

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Good Management. Good strategy and good strategy execution

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The five task of strategic management. 1. Forming a strategic vision of where the organization is headed. 2. Setting objectives. 3. Crafting strategy to achieve the desired out come. 4. Implementing and executing the chosen strategy efficiently and effectively.

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5. Evaluating performance and initiating corrective adjustment in the vision, long term direction, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.

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Developing strategic vision. A strategic vision reflects management s aspirations for the organization and its business providing a panoramic view of where we are going and giving specifics about its future business plan. It spells out long term business purpose and mold organizational identity. A strategic vision points an organization in a particular direction and charts a strategic path to follow.

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A strategic vision portrays company s future business scope ( where we are going ) Company s mission statement describe its present business scope ( who we are and what we do )

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Why strategic vision.
Look beyond today, technology, customer need and expectations, how to compete, internal and external factors.

There is no escaping the need for strategic vision

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Setting objectives, is to convert managerial statement of strategic vision and business mission into specific performance targetsresults and outcomes the organization want to achieve. Setting objectives and then measuring whether they are achieved or not help managers track an organization progress.

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Crafting a strategy. A strategy reflects managerial choices amongs alternatives and signals organizational commitment to particular products, markets, competitive approaches, and ways of operating the enterprise. Objectives are the ends and strategy is the means of achieving them.

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What does company strategy consist of?

Planned actions and initiatives to outcompete rivals. Moves to react and respond to changing external circumstances. Action to alter geographic coverage. Action to merge with or acquire a rival company to strengthen the company business position. Action to form strategic alliances and collaborative partnerships. Action to capitalize on new opportunities or to defend against threats to the company s well being. Action and approaches that define how the company manages R&D, production, sales and marketing, finance, and other key functions. Action to strengthen the company s resource base and competitive capabilities. Action to diversify the company s revenue base and enter all together new industries or businesses.

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Why Company Strategies Evolve.
External and internal events make it common place to initiate fresh strategic moves and business approaches of one kind or another in one part of organization or another, an organization s strategy reform over time as the number of changes and adaptation begin to mount.

Strategy making is an on-going process, not a one-time event

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Strategic Plan
Consist of an organization s mission and future direction, near-term performance targets and strategy.

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Implementing and executing the strategy.
+ Building an organization capable of carrying out the strategy. + Allocating company resources so that organizational units charged with performing strategy-critical activities and implementing new strategic initiative have sufficient people and funds to do their work successfully. + Establishing strategy supportive policies and operating procedures. + Putting a freshly chosen policy into place. +Motivating peoples in ways that induce them to pursue the targetsobjectives energetically and, if need be, modifying their duties and jobsbehavior to better fit the strategy requirements of successful execution. + Tying the reward structure to the achievement of targeted results. + Creating a company culture and work climate conducive to sucessful strategy implementation. + Installing information, communication, and operative systems that enable company personnel to carry out their strategic rule effectively.

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+ Instituting best practices and program for continuous improvement. + Exerting internal leadership needed to drive implementation forward and to keep improving on how the strategy is being executed.

Good strategy execution involves creating a strong fit between the way things are done internally and what it will take for the strategy to succeed. The strategy implementing/strategy executing task is easily the most complicated and time-consuming part of strategic management.

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Evaluating performance, Monitoring new developments, and initiating corrective adjustments. It is always incumbent on management to evaluate the organization s performance and progress. It is management s duty to stay on the top of company s situation, deciding whether things are going well internally, and monitoring outside developments closely.

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