strategic management presentation session 1

Strategic Management

Session 1:

Introducing the Concepts


Why is Strategic Management Important?

What is Strategic Management?


Why is Strategic Management Important?

- Individual: You will be evaluated and rewarded on doing your job well, which means understanding how and why strategic decisions are made.

- Organisation: It can make a difference to how well an organisation performs. It helps with coordinating various divisions, functions and general work activities.

Introducing the Concepts What is Strategic Management?

- Strategies: An organisation’s goal-directed decisions and actions in which its capabilities and resources are aligned with the opportunities and threats in its environment.

- Strategic Management: A process of analyzing the current situation, developing appropriate strategies, putting the strategies into action, and evaluating , modifying, or changing the strategies as needed.


What is Strategic Management?

- Four Characteristics: Interdisciplinary, external focus, internal focus and orientated towards the future.

Introducing the Concepts Strategic Management Process

- Situation Analysis: scanning and evaluating the current organisational context and external and internal environments.- Strategy Formulation: developing and then choosing appropriate strategies. - Strategy Implementation: putting strategies into action- Strategy Evaluation: evaluating the implementation and outcomes of strategies.


Types of Organisational Strategies

- Functional or Operational: short-term, goal-directed decisions and actions of the functional areas.

- Competitive or Business: how the organisation is going to compete

- Corporate: broad and long-term choices of what businesses the organisation is in or wants to be in and what to do with those businesses.


Background

- Military Strategies: exploiting the enemy’s weak spots and attacking them where they are most vulnerable!

- Academic Origins: Economics and Organisational Theory.


Emergence of Strategic Planning and Strategic Management:

- 1960s: The birth of strategy as an academic field. Researchers began looking for explanations of organizational differences in performance and functioning.- 1970s: Focus on process (how strategies were formed) and content (relationship between strategic choices and performance).