Documente Academic
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in Strategic
Management
What is Strategy?
A companys strategy consists of the set of
competitive moves and business
approaches that management is employing
to run the company
Strategy is managements game plan to
Attract and please customers
Stake out a market position
Conduct operations
Compete successfully
Achieve organizational objectives
Set of managerial
decisions and
actions that
determines the
long-run
performance of a
firm.
Strategic Management
Strategic management is the art and science
of formulating, implementing and evaluating
cross-functional decisions that will enable an
organization to achieve its objectives.
It is the process of specifying the organization's
objectives, developing policies and plans to
achieve these objectives, and allocating
resources to implement the policies and plans
to achieve the organization's objectives.
Monitoring, evaluation,
and disseminating
information from external
and internal environments
to key people in the firm
Environmental Variables
Environmental Scanning
SWOT Analysis
Strengths Weaknesses
Opportunities - Threats
Strategy Formulation
Development of long-range plans for
effective management of opportunities
and threats in light of corporate
Strengths and weaknesses
Strategy
Formulation
Mission Statement
Strategic Vision
A view of an organizations future
direction and business course; a
guiding concept for what the
organization is trying to do and to
become.
Organization Mission
Represents managements customized
answer to the question what is our
business and what will it be. A mission
statement broadly outlines the
organizations future direction and
serves as a guiding concept for what
the organization is to do and to become.
STRATEGY - Types
In
S t t e nd
ra e
te d
gy
Del
ibe
Unrealized
Strategy
rate
Stra
teg
y
Realized
Strategy
Sustained
Superior
Performance
Emergent strategy
Adapted from: Mintzberg, H. The Strategy Concept I: Five Ps for Strategy California Management Review. Volume 30 Number1, Fall 1987.
Hierarchy of
Strategy
3 Levels of Strategy
Corporate strategy
Formulated for the company as a whole
Business strategy
Formulated for each separate business unit
Functional strategy
Formulated by functional-area managers within
each business unit
Corporate Strategy
Stability
Growth
Retrenchment
Business Strategy
Competitive strategies
Cooperative strategies
Functional Strategies
GAME PLAN for running a particular
function within a business
Adds DETAIL to business strategy and governs HOW key
activities will be managed
Functional Strategy
Technological leadership
Technological followership
Operating Strategies
Concerns even narrower strategic approaches
for managing KEY OPERATING UNITS
Designed to achieve strategy-critical
performance targets of operating-level units
Add detail to overall business plan and
functional strategies but are of lesser scope
Strategic Decision
Making
Strategic Decisions
Rare
Consequential
Directive
Strategic
Decision
Making
Process
Mintzbergs Modes
Entrepreneurial mode
Adaptive mode
Planning mode
Logical incrementalism
Arenas
Vehicles
Differentiators
Staging
Economic logic
Please prepare
Mission,
Vision,
Objective
For a
Company
Of your
choice