1 strategic management overview

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Strategic ManagementStrategic Management

OverviewOverviewBy Alex Nathan By Alex Nathan

SserwangaSserwanga

04/07/2304/07/[email protected]@yahoo.com

History of Strategic ManagementHistory of Strategic Management

From art of warFrom art of war

From the Greek word ‘strategeia’ meaning the From the Greek word ‘strategeia’ meaning the art or science of being the generalart or science of being the general

Originally known as the grand plan which Originally known as the grand plan which included the strategic plan and the included the strategic plan and the implementation plan of acting on those plansimplementation plan of acting on those plans

The grand strategy approach was later adopted The grand strategy approach was later adopted into business in form of business strategy which into business in form of business strategy which is embedded in strategic managementis embedded in strategic management

04/07/2304/07/23 [email protected]@yahoo.com

Cont-Cont-

From the mass production era of the industrial From the mass production era of the industrial revolution in light of the 1revolution in light of the 1stst and 2 and 2ndnd world war world war which destroyed what was in place led to more which destroyed what was in place led to more concern for long term survival hence need for concern for long term survival hence need for strategic planning and strategy implementationstrategic planning and strategy implementation

The two main reasons for the ever increasing The two main reasons for the ever increasing need for strategic management are1) the ever need for strategic management are1) the ever changing business environment & 2) the rapid changing business environment & 2) the rapid increase in size and complexity of companies.increase in size and complexity of companies.


What is strategic Management?What is strategic Management?

A process that involves A process that involves carrying out decisions and carrying out decisions and actions to develop an actions to develop an appropriate strategy appropriate strategy (means) to achieve an (means) to achieve an organization's objectives.organization's objectives.


Process whereby managers Process whereby managers establish an organization's long establish an organization's long term direction, set objectives, term direction, set objectives, develop strategies to achieve develop strategies to achieve these objectives in light of the these objectives in light of the internal and external internal and external circumstances, and undertake to circumstances, and undertake to execute the chosen action plans. execute the chosen action plans.


Determination of the basic Determination of the basic long term goals and long term goals and objectives of an objectives of an organization, and adoption organization, and adoption of courses of action and of courses of action and allocation of resources allocation of resources necessary to carry out these necessary to carry out these goalsgoals


Characteristics of strategic managementCharacteristics of strategic managementIt is not an event but rather a It is not an event but rather a process.process.Futuristic and long term oriented.Futuristic and long term oriented.Focus on strategy as a central theme.Focus on strategy as a central theme.Focuses on creating competitive Focuses on creating competitive superiority.superiority.Top management point of view.Top management point of view.Prioritizing resource allocation.Prioritizing resource allocation.


The strategic Management FrameworkThe strategic Management Framework

Defining the business of the firm Defining the business of the firm / enterprise/ enterpriseSetting objectives & Setting objectives & performance targetsperformance targetsFormulating strategiesFormulating strategiesImplementing the selected Implementing the selected strategystrategyEvaluation and controlEvaluation and control


The Strategic Planning ProcessThe Strategic Planning ProcessThis is the process of revising the This is the process of revising the existence of the enterprise (mission existence of the enterprise (mission statement), setting the long-term goals statement), setting the long-term goals and objectives in view of your and objectives in view of your environment, formulating the best strategy environment, formulating the best strategy of getting where you want to be.of getting where you want to be.

It does not include the strategy It does not include the strategy implementation phase(1/2 way the battle implementation phase(1/2 way the battle of outwitting your rivals)of outwitting your rivals)


Dimensions of strategyDimensions of strategyA strategy as a planA strategy as a plan: course of action, a : course of action, a guideline to deal with a situationguideline to deal with a situationA strategy as a ployA strategy as a ploy- i.e a maneuver to win - i.e a maneuver to win competitorscompetitorsA strategy as a patternA strategy as a pattern i.e. a series of i.e. a series of consistent actions/activitiesconsistent actions/activitiesA strategy as a positionA strategy as a position- a means of locating - a means of locating an organization in the environment/marketan organization in the environment/marketA strategy as a perspectiveA strategy as a perspective-it unites an -it unites an organization by a common thinking towards organization by a common thinking towards achieving common goalsachieving common goals

Date post:	11-Sep-2014
Category:	Business
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1 strategic management overview

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