Strategic ManagementStrategic Management

What is strategic management? Strategic planning Strategic implementation Strategic control

What is strategy?What is strategy?

What is strategic What is strategic management?management?

Strategic management involves strategic planning, strategic implementation, and strategic control.

Compare to traditional model of management.

Strategic planningStrategic planning

Anticipating the future, assessing present conditions, and making decisions concerning organizational directions, programs, and resource deployment.

Levels of planningLevels of planning

Corporate Business Operational/Functional

Steps in Strategic PlanningSteps in Strategic Planning

Mission Formulating objectives Strategic assessment Strategy choice

MissionMission

Formulating objectivesFormulating objectives

Results the HCO seeks to accomplish. They are derived and reflect the mission.

Strategic assessment Strategic assessment

SWOT analysis External environmental analysis Internal analysis

Strategy choiceStrategy choice

Formulation and evaluation of alternative strategies.

Strategies Ultimate goal: achieve competitive

advantage over rivals (gain market power).

Types of strategies to achieve Types of strategies to achieve competitive advantagecompetitive advantage

Position Power David versus Goliath

Position strategiesPosition strategies Business level. Position the organization vis-à-vis other

organizations within the market. Low cost Differentiation Specialization/niche

Power strategiesPower strategies

Corporate level Related to size To achieve synergies

Types of power strategiesTypes of power strategies Vertical integration Horizontal integration Diversification

Methods to implement power Methods to implement power strategiesstrategies

Internal development Purchase/Acquisition. Cooperation

Strategy implementationStrategy implementation

Organization structure Culture Leadership

Strategic controlStrategic control

Performance evaluation and feedback Budgeting Compensation systems