overview of strategic management

8/2/2019 Overview of Strategic Management

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Prepared by:Alaa MaherGroup (6)


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The set of decisions and actions that result

in the formulation and implementation of

plans designed to achieve a companys

objectives.


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1. Formulate the companys mission.

2. Conduct an analysis that reflects the

companys internal conditions and

capabilities.

3. Assess the companys external

environment.


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4. Analyze the companys options.

5. Identify the most desirable options.

6. Select a set of long term objectives and

guard strategies.

7. Develop annual objectives and short term

strategies.


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8. Implement the strategic choices.

9. Evaluate the success of the strategic

process.


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Strategic issues:

Require top management decisions.

Require large amounts of the firms

resources.

Often affect the firms long-term prosperity.


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Strategic issues:

Are future oriented.

Have multifunctional or multibusiness

consequences.

Require considering the firms external

environment.


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Top of the decision making hierarchy:

Corporate level.

Middle of the decision making hierarchy

Business level.

Bottom of the decision making hierarchy

Functional level.


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Composed of a board of directors and the

chief executive and administrative officers.

The attitudes at the corporate level reflect

the concerns of stock holders and society

at large.


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Composed of business and corporate

managers.

They translate the statements of the

direction and intent generated in the

corporate level into concrete objectives

and strategies.


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Composed of managers of product,

geographic, and functional areas.

Their responsibility is to implement or

execute the firms strategic plans.

They address issues such as efficiency

and effectiveness.


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Corporate and business level managers

center their attention on doing right

things.

Managers at the functional level center

their attention on doing things right.


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Formality:

The degree to which participation,

responsibility, authority, and discretion in

decision making are specified in strategic

management.


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Entrepreneurial mode:

Associated with firms under control of a

single individual (small firms).

Strategic evaluation is informal, intuitive,

and limited.


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Planning mode:

Associated with large firms.

Strategic evaluation is comprehensive,

formal planning system.


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Adaptive mode:

The strategic formality associated to

medium-sized firms that emphasis the

incremental modification of existing

competitive approaches.


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1. Enhance the firms ability to prevent

problems.

2. Group-based strategic decisions results

in better decisions.

3. Involvement of employees heightens their

motivation.


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4. Gaps and overlaps among individuals

and groups are reduced.

5. Resistance to change is reduced.


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Company mission.

Internal analysis.

External environment.

Strategic analysis and choice.

Long-term objectives.


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Generic and Grand strategies.

Short-term objectives.

Action plans.

Functional tactics.

Policies that empower action.


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Restructuring, Reengineering, Refocusing

the organization.

Strategic control and continuous

improving.


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Process:

The flow of information through interrelated

stages of analysis towards the

achievement of an aim.


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In strategic management process the flow of

information involves forecast data on the

operations and environment of the business.

Managers evaluate these data in the light of

the values and priorities of influential

individuals and groups (stakeholders)


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A change in any component will affect several

or all other components.

Strategy formulation and implementation are

sequential.

The necessity of feedback.

The need to regard it as a dynamic system.


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overview of strategic management

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