NATURE OF STRATEGIC MANAGEMENT

NATURE OF STRATEGIC MANAGEMENT

• It is considered as the capstone
course of all management and
business subjects.
Strategic management

focuses more on planning.

THREE POSITION OF MANAGERIAL
FUNCTIONS
STRATEGIC MANAGEMENT
KEY NOTES
• The forerunner of strategic management is business policy.
• Business policy refers to the process of defining the long
term goals of the company.
• Introduction of strategic management is in 1950.
• Business policy and strategic management are similar since
both are with long term performance of a company.
Business policy Internal environment

Both external and

Strategic management internal environment
STRATEGIC
MANAGEMENT
WHELEEN AND HUNGER (2010)
1. Determine the long run performance of
company.
2. Includes environmental scanning ,
strategy formulation, strategy
implementation, and evaluation and
control.
3. Emphasize the monitoring and
evaluation of external opportunities and
treats in light of a company’s strengths
and weaknesses
STRATEGIC
MANAGEMENT
DAVID (2013)
Defined it as the art and
science of formulating,
implementing, and evaluating
cross functional decisions that
enable company to achieve its
objectives.
STRATEGIC Operationally refers to a management’s continuous rational
MANAGEMENT process of defining the long term direction of a company after
critically evaluating the different competing forces surrounding
and within its competitive advantage.
 ACTION
STRATEGIC Operationally refers to a management’s continuous rational process of
MANAGEMENT defining the long term direction of a company after critically evaluating the
different competing forces surrounding and within its competitive
advantage
And
control
This stage refers to the development of
long term goals and objectives of a
company after conducting a through
analysis forces comprising its
environment.
This is the stage
wherein different
strategic phase are
put into action and
are aligned with
defined business
programs,
procedures, and
budgets.
STRATEGY EVALUATION AND CONTROL

This is the last stage wherein the operating

performance of a company is monitored
and evaluated, and remedial action is
made.
 EVOLUTIONARY PHASES OF
STRATEGIC MANAGEMENT

1.SHORT-TERM FINANCIAL PLANNING PHASE

2.MEDIUM-TERM PLANNING PHASE
3.STRATEGIC PLANNING PHASE
4.STRATEGIC MANAGEMENT PHASE
IMPORTANCE OF STRATEGIC MANAGEMENT

1. It can provide a clear overall

direction
2. It can overcome direct and
indirect competition.
3. It can achieve a competitive
advantage
4. It can attain superior business
performance
PURPOSE OF STRATEGIC MANAGEMENT
1. Exploit business opportunities
from a changing environment
2. Identify priorities requiring
financial assistance
3. Assist in reducing business risk
4. Continuously define and redefine
direction
5. Build competitive advantage.
BENEFITS OF STRATEGIC PLANNING

1. A clear sense of strategic vision

for the company
2. A sharper focus on what is
strategically important
3. An improved understanding of
a rapid changing environment
4. Readily aligned resources for
optimal result.
5. Easier implementation of risk
control measures to minimize
uncertainty.
STRATEGIC MANAGEMENT MODEL