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