Strategic management

Strategic management can be defined as the art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an organization to achieve its objectives

Corporate Strategy is the direction and scope of an organization, which achieves advantage for the
organization through its configuration of resources within a changing environment and to fulfill
stakeholder expectations.

Components of strategic management:

The strategy statement of a firm sets the firms long-term strategic direction and broad policy directions.
It gives the firm a clear sense of direction and a blueprint for the firms activities for the upcoming years.
The main constituents of a strategic statement are as follows:
Strategic plans can come in many different shapes and sizes, but they all have the following
components. The list below describes each piece of a strategic plan in the order that theyre typically
developed.

Mission statement: The mission statement is an overarching, timeless expression of your purpose and
aspiration, addressing both what you seek to accomplish and the manner in which the organization
seeks to accomplish it. Its a declaration of why you exist as an organization.

Vision statement: This short, concise statement of the organizations future answers the question of
what the company will look like in five or more years.

Values statement or guiding principles: These statements are enduring, passionate, and distinctive core
beliefs. Theyre guiding principles that never change and are part of your strategic foundation.

SWOT: A SWOT is a summarized view of your current position, specifically your strengths, weaknesses,
opportunities, and threats.

Competitive advantage: Your competitive advantage includes what youre best at compared to the
competition.

Long-term strategic objectives: These long-term strategic focus areas span a three-year (or more) time
horizon. They answer the question of what you must focus on to achieve your vision.

Strategies: Strategies are the general, umbrella methods you intend to use to reach your vision.
Short-term goals/priorities/initiatives: These things change over the vital destinations into particular
execution focuses on that fall inside the one-to two-year time skyline. They state what, when, and who
and are quantifiable
Action items/plans: These particular explanations clarify how an objective will be proficient. They're the
regions that move the procedure to operations and are for the most part executed by groups or people
inside one to two years.

Scorecard: You utilize a scorecard to report the information of your key execution pointers (KPIs) and
track your execution against the month to month target

Financial assessment: In view of verifiable record and future projections, this evaluation helps design
and anticipate the future, enabling you to increase much better control over your association's
budgetary execution

Essential Elements of Good Management:

1.Targets
2.Incentives
3.Monitoring

LEVELS OF STRATEGY

Corporate level strategy

Business Unit strategy: Competitive Strategy
Operational strategy: Go-to-Market Strategy or Functional Strategy

Strategic Business Management

1. Cost Leadership Low cost

2. Cost Leadership Best Value
3. Differentiation
4. Focus Low cost
5. Focus Best Value

5 Ps of Strategy
1.Plan
2.Ploy
3.Pattern
4.Position
5.Perspective.

External Audit
The purpose of External Audit is to identify key external variables that offer actionable
responses.

Key External Forces :

1. Economic
2. Social, Cultural Demographic & Environmental
3. Political, Governmental & Legal
4. Technological
5. Competitive

Goals & Objectives

SURVIVAL
PROFITABILITY
STABILITY
EFFICIENCY
GROWTH

Micro Environment

Micro Environment is identified with little territory or prompt outskirts of the association. It
impacts the association routinely and straightforwardly.
Choices influenced by Micro-Environment

Employees, their qualities, attitudeand profiles.

The client base
Methods and wellsprings of finance
Vendors/providers and the connections
The local group
Direct competition

Macro Environment
Macro Environment consists of wide, roundabout components which influence the general
business condition in a nation or locale, over all ventures.
Demographic
Economic
Legal / Regulatory
Government
Political
Cultural
Technological
Global