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STRATEGIC MANAGEMENT

INTRODUCTION AND PROCESS

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CLIENTS

FIRMProducts

Strengths &

Competencies

COMPETITORSProducts

SATISFY

Distinctive Competencies

STRATEGIES

STRATEGIES

Key Success FACTORS

Competitive Advantage

CONCEPTS & DEFINITIONS

Needs

&

Wants

SATISFY

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CONCEPTS & DEFINITIONS

WHAT IS STRATEGIC MANAGEMENT?Definition of Thompson & Strickland,

1987:

Strategic management is the ongoing processwhereby managers establish an organizations

long-term direction, set specific performance

objectives, develop strategies to achieve theseobjectives in the light of all the relevant internaland external circumstances, and undertake to

execute the chosen action plans.

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CONCEPTS & DEFINITIONS

WHAT IS STRATEGIC MANAGEMENT?

Definition of Dess, Lumpkin & Taylor,

2004:Strategic management consists of the analysis,

decisions, and actions an organization

undertakes in order to create and sustaincompetitive advantages.

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CONCEPTS & DEFINITION

Process -comprises a sequence of activities

Competitive advantage - is a distinctivecompetence that allows firms to consistently

outperform their rivals.

Strategy-management's game plan forstrengthening the performance of the

company (how the company will be unique,how the company will build its competitive advantage,how the company will sustain that advantage over time),the result of choices made, on where to play and how to

win, to maximize long-term value.

http://www.superstock.com/stock-photos-images/1830-62542http://www.google.ro/imgres?imgurl=http://blog.fabsuite.com/wp-content/uploads/2011/06/process.jpg&imgrefurl=http://blog.fabsuite.com/2011/06/it%E2%80%99s-all-a-process/&h=312&w=310&sz=22&tbnid=_FrUJsJii35gYM:&tbnh=93&tbnw=92&zoom=1&usg=__NsUAt8BiZqJfWoiuKP-Y1OCXWTo=&docid=l34o21cPll1_9M&hl=ro&sa=X&ei=rTclUYTGDo-Vswa3yIGwDg&sqi=2&ved=0CC0Q9QEwAQ&dur=693

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CONCEPTS & DEFINITION

Strength= a resource or competence (ability) of a firmto carry out well an activity.

Core competence= a competence that matters for

the firm's profitability and competitiveness.Key success factorsconsist of the several activities

which are the primary determinants of success in theindustry.

Distinctive competence = a competitively valuablecore competence better than what competitors mightpossess.

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CONCEPTS & DEFINITIONS

Key attributes of strategic management

Directs the organization toward overall goalsand objectives.

Includes multiple stakeholders in decisionmaking

Needs to incorporate short-term and long-termperspectives

Recognizes trade-offs between efficiency andeffectiveness

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CONCEPTS & DEFINITIONS

Thinking strategically means answering threequestions:

1. WHERE ARE WE NOW?2. WHERE DO WE WANT TO GO? (strategic andfinancial outcomes)

3. HOW WILL WE GET THERE?

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CONCEPTS & DEFINITIONS

Strategic management is the study of:

-why some firms outperform others?

-how to compete in order to createcompetitive advantages in themarketplace (unique, valuable, and

sustainable, difficult for competitors tocopy or substitute)

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THE STRATEGIC MANAGEMENT PROCESS

Situation Analysis

Evaluation of the external

environment and the

organization

Strategic Direction

Creation of organizational

vision, mission and strategic

objectives

Strategy Formulation

Development of corporate,

business and functional

strategies

Strategy Implementation,

Follow-up & Evaluation

Design of organizational

structure, control,

informational and

decisional systems, and

performance indicators.

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THE STRATEGIC MANAGEMENT PROCESS

Situation Analysis (external and internal environmentsanalyses)

Direction settings (develop a strategic vision & mission,and setting strategic objectives)

Strategy formulation Strategy implementation and Evaluation of performance,

reviewing new developments, and initiating correctiveadjustments

Strategic Management is an Ongoing Process.