Strategic Management

Presented By:

Aasim MushtaqSarfraz KhanMuhammad ImtiazSajid Ali

Strategic Manageme

ntCreating Competitive Advantages

Definition

Strategic management consists of the analysis,

decisions, and actions an organization undertakes in order to create and sustain

competitive advantages.

Strategic Planning:

The process of determining a company's long-term

goals and then identifying the best approach for achieving those goals.

Why is strategic management important?

Gives everyone a role Makes a difference in

performance levels Provides systematic approach

to uncertainties Coordinates and focuses

employees

Strategic Management ProcessStrategic Management Process is made up of four elements.

Performed in strict orderA continuous process

Situation AnalysisStrategy FormulationStrategy ImplementationStrategy Evaluation

Strategic Management Process

Strategic management process

Strategic Management Process Step 1: Identifying the organization's current

mission, objectives, and strategies Mission: the firm’s reason for being

Who we are, What we do, and Where we are now

Goals: the foundation for further planning Measurable performance targets

Step 2: Conducting an external analysis The environmental scanning of specific and general

environments Focuses on identifying opportunities and threats

Strategic Management Process (cont’d)

Step 3: Conducting an internal analysis Assessing organizational resources,

capabilities, activities and culture: Strengths (core competencies) create value for

the customer and strengthen the competitive position of the firm.

Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage.

Steps 2 and 3 combined are called a SWOT analysis (Strengths, Weaknesses,

Opportunities, and Threats)

Strategic Management Process (cont’d)

Step 4: Formulating strategies Develop and evaluate strategic

alternatives Select appropriate strategies for all

levels in the organization that provide relative advantage over competitors

Match organizational strengths to environmental opportunities

Correct weaknesses and guard against threats

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Strategic Management Process (cont’d)

Step 5: Implementing strategies Implementation: effectively fitting

organizational structure and activities to the environment

Effective strategy implementation requires an organizational structure matched to its requirements.

Step 6: Evaluating results How effective have strategies been? What adjustments, if any, are necessary?

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Levels of strategy

Key Attributes of Strategic Mgt. Directs the organization toward

overall goals and objectives.

Involves the inclusion of multiple stakeholders in decision making.

Needs to incorporate short-term and long-term perspectives.

Recognizes tradeoffs between efficiency and effectiveness.

Strategic Management Process

Corporate Governance and

Stakeholder Management Corporate governance intends to

achieve goals and objectives considering that stakeholder management is so critical in the process.

Symbiosis have to be established

Definitions

Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.

Corporate Governance

Stakeholder management is the process of managing the expectation of anyone that has an interest in a project or will be effected by its deliverables or outputs.

Definitions

Stakeholder Management