Strategic Management

Presented
Name SOHAIL LATIF MEHMOOD HASSAN YASER IFTIKHAR SIBGHATULLAH By Roll Number MI07MBA057 MI07MBA036 MI07MBA058 MI07MBA042
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What is strategic management?

A continuous, iterative process aimed at keeping an organization as a whole approporiately matched to its environment (Certo and Peter) Keeping the business in tune with management and marketing forces both outside and inside the firm
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Benefits of strategic management

Establish the mission Formulate philosophy Establish policies Setting objectives Developing strategy Plan the organizational structure Provide personnel

Establish procedures Provide facilities Provide capital Set standards Establish programs and plans Control information Activate people
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Steps to strategic management

Environmental analysis Establish organizational direction Strategy formulation Strategy implementation Strategic control

Environmental analysis

Process of examining the organizations environment to determine:

Strengths Weaknesses Opportunities Threats

Environmental structure

General environment

Social, economic, political, legal, technical International, supplier, labor, competition, customer Organizational, marketing, financial, personnel, production
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Operating environment

Internal environment

Methods of environmental forecasting

Expert opinion Trend extrapolation Trend correlation Dynamic modeling

Cross-impact analysis Multiple scenarios Demand/hazard forecasting

Establish organizational direction

Establishing an organizational direction for the company involves determining two indicators:

Organizational mission the reason why the organization exists Objectives measurable targets to track the growth of the business
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Key objective areas

Market standing Innovation Productivity Resource levels Profitability Manager performance and development Worker performance and attitude Social responsibility
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Types of objectives

Profitability Growth Market share Social responsibility Employee welfare Product Quality Service

R&D Diversification Efficiency Financial stability Resource conservation Mgt & labor development
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Strategy formulation

What are the purpose(s) and objective(s) of the organization? Where is the organization presently going? What critical environmental factors does the organization currently face? What can be done to achieve organizational objectives more effectively in the future?
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Growth-share matrix
22 20 18 Market Growth Rate (percent) 14 12 10 8 6 4 2 Cash Cows Dogs Stars Question Marks

10.0

5.0

2.0

1.0

0.5

0.1

Relative Market Share

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Formulating business strategies

Structural analysis of competitive forces

Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products Rivalry among existing competitors Strategic alternatives
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Formulating functional strategies

Operations strategy Financial strategy Marketing strategy Human resource strategy

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Strategy implementation

Commander approach

Organizational change approach

Collaborative approach

Cultural approach
Crescive approach
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Strategic control

Typically consists of three steps Monitoring performance Comparing performance to standards Taking corrective action where needed
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The material for this presentation was taken from:

Strategic Management: Concepts and Applications

Samuel C. Certo and J. Paul Peter Random House Business Division

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