PRESENTATION BY: ROHIT PRAFUL RAHULSHARMA AJAY CHOUBEY SHIVANI GUSAIN YOGESH

STRATEGIC MANAGEMENT
Strategic management is what managers do to develop

an organizations strategies.

Its an important task that involves all the basic

management function-planning, organizing, leading, and controlling.

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STRATEGIC PLANNING
Strategic planning is the process by which an organization envisions its future and develops the necessary procedures and operations to achieve that future.
Strategic planning is an organization's process of

defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.
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WHAT IS STRATEGY?
Strategy is perspective, position,

plan, and pattern.

Strategy is the bridge between

policy or high-order goals on the one hand and tactics on the other.
Strategy and tactics together

straddle the gap between ends and means.

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WHY SHOULD AN ORGANIZATION DO STRATEGIC PLANNING?

1. Forces a look into the future and therefore provide an opportunity to influence the future, or assume a proactive posture. To bring everyone together in the organization so that they are on the same wavelength
To reawaken and motivate key people within the organization To increase morale within an organization and develop a sense of trust and cohesion.
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2.
3. 4.

Contd.
5. 6. 7. Helps define the overall mission of the organization and focuses on the objectives. Provides a sense of direction, continuity, and effective staffing and leadership. Strategic planning is important because organizations are complex and diverse.

In summary, strategic planning is the key to helping us collectively and cooperatively gain control of the future and the destiny of our organization.
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CHARACTERISTICS OF A USEFUL STRATEGIC PLAN

A set of priorities. Setting priorities allows for the plan to

be adjusted according to changing needs or resources.

Achievable, measurable, and time sensitive.

Remember, its better to do a few things well than many things poorly. The plan should contain goals that are measurable and have deadlines.
Flexible and responsive to changing conditions. The

plan is a road map that may contain unforeseen detours such as unexpected crises, new opportunities, or changes in resources.
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Contd.
Short and simple. Plans that are more like a book will

sit on a shelf. Keep it focused on the most important things to accomplish.

The means to an end, not an end in itself. The plan

is the process by which it reaches its destination; it is not the destination.

Based on a three- to five-year period. The strategic

plan should be a living document that has a one-year drop off and a new year added so that it always covers the same time period.
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STRATEGIC PLANNING PROCESS

Although specific steps may vary in strategic planning, but it can be elaborated through these key elements:

1. Identify the organizations current mission, goals and strategies 2. SWOT analysis .i.e. External analysis(opportunities and threat) Internal analysis(strength and weakness) 3. Formulation of strategy.

Explanation:
Step 1: IDENTIFYING THE ORGANIZATIONS CURRENT MISSION, GOALS AND STRATEGIES Mission: A statement of the purpose of an organization. Goal: A goal or objective is a desired result a person or a system envisions, plans and commits to achieve

Step 2:

SWOT ANALYSIS

External Analysis: In an external analysis, managers should

examine both the specific and general environments to see the trends and changes. On the basis of analysis managers need to pinpoint opportunities that the organization can exploit and threats that it must counteract or buffer against.
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Contd.
Opportunities: Positive trends in external environmental factors. Threats: Negative trends in external environmental factors.
Internal Analysis: Internal analysis provides important

information about an organization's specific and capabilities. After completing an internal analysis, managers should be able to identify organizational strengths and weaknesses.

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 The combined external

and internal analysis are called SWOT analysis, which is an analysis of the organizations strengths, weaknesses, opportunities, and threats.
After completing a SWOT

analysis, managers are ready to formulate appropriate strategies.

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Contd.
Step 3:

FORMULATING STRATEGIES Managers should consider the realities of the external environment and their available resources and capabilities and design strategies that will help the organization achieve its goals. Corporate, business, and functional are the three main types of strategies to be formulated by managers.

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CATEGORIES OF STRATEGIC PLANNING

Organizations uses three types of strategies :
Organizational strategy

Corporate Strategy

Competitive Strategy

Functional strategy

Corporate strategy : top-level managers typically are responsible for corporate strategy. 2. Competitive strategy : Middle-level managers are responsible for competitive strategy. 3. Functional strategy : Lower-level managers are responsible for functional strategies
1.
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CORPORATE STRATEGY
A corporate strategy is one that specifies what

businesses a company is in or wants to be in and what it wants to do with those businesses.

Its based on the mission and goals of the organization

and the roles that each business unit of the organization will play
Top-level managers are responsible for corporate

strategies.

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COMPETITIVE STRATEGIES
A competitive strategy is a strategy for how

an organization will compete in its business(s).

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FUNCTIONAL STRATEGIES
The Strategies used by an organizations various

functional departments to support the organizations competitive strategy.

Lower-level managers or front -line managers are responsible for functional strategies.

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