Strategic Management

• Strategic management is the process of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.

• An analysis of the current business situation, the formulation of budgeting, objectives and strategies form basis of a sound strategic management plan

FEATURES OF STRATEGIC MANAGEMENT

Strategy Management

Goal Setting

Analysis

Strategy formulationStrategy Implementation

Strategy Monitoring

Role of Strategic Managers

Identify long-range targets

Scan operating environment

Evaluate structures and resources

Match to challenges faced

Identify stakeholders

CHARACTERISTICS OF STRATEGIC MANAGEMENT

EXPLORING BEYOND THE BOUNDARIES OF YOUR ORGANIZATION

Looking in: ASSESSING INTERNAL SYSTEMS AND STRUCTURES

CHARACTERISTICS OF STRATEGIC MANAGEMENT

CHARACTERISTICS OF STRATEGIC MANAGEMENT

Looking ahead: MELDING STRATEGY WITH STRUCTURE WHILE MONITORING PROGRESS

Strategic Management and Strategic Planning

Strategic Planning provides the platform for Strategic Management

Strategic planning helps with seeing the big picture and making it a reality by breaking it up into easily managed chunks

• Whatever the type of change - restructuring, new processes, organizational merger, new systems, change of leadership, and so on - the model can be used to:

» understand how the organizational elements are interrelated

» ensure that the wider impact of changes made in one area is taken into consideration.

The McKinsey 7S Framework Model

The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually

reinforcing.

The 7S Framework as a tool of Strategic Planning

use the 7S model to help analyze the current

situation

use the 7S model to help analyze a proposed future

situation

adjust and tune the elements of the 7S model

to ensure that your organization achieves the

desired results

NOWStage

WHEREStage

HOWStage

Structure

Strategy Systems

Skills

Staff

Shared Values

Style

Strategy

Structure

Systems

Style

Staff

Skills

Shared Values

The plan devised to maintain and build competitive advantage over the competition

The way the organization is structured and who reports to whom

Daily activities and procedures that staff members engage in to get the job done

The style of leadership adopted

The employees and their general capabilities

The actual skills and competencies of the employees working for the company

Called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the

corporate culture and the general work ethic

Placing Shared Values in the middle of the model emphasizes that these

values are central to the development of all the other critical elements.

The original vision of the company is formed from the values of the

creators. As the values change, so do all the other elements.

Strategic Moves in Pakistan

• PTCL takeover by Etisalat• Bid $2.6 billion• According to experts it was overpriced by $1

billion• Payment delayed• Terms of payment rescheduled• Large scale redundancies and inefficiencies

found by Etisalat

The country’s first hostile take over was averted with an out of court settlement

Mr. Hussain Dawood stepped back and let the existing management continue running the business

The Dawood group (sponsors of Dawood Hercules Chemical--a competing urea producer) took over

control of Engro Chemical

Takeover of Adamjee Insurance by MCB Mansha Group

First hostile takeover bid in the country’s corporate history

The litigation spread over 2 years

AIC filed several petitions against the takeover

Union Bank acquired by

Standard Chartered Bank

Making it the largest bank in

Pakistan

Initially the bank acquired 80.86 per

cent shares in Union Bank Ltd. for $413 million