STRATEGIC MANAGEMENET

THE STRATEGIC MANAGEMENT

PROCESS
What is Strategy? Why Strategy?Why Strategy is More Complex? Strategic Management Significance of Strategic Management Strategic Management Process

Stability Strategies
Strategy Formulation SWOT Analysis Stability Strategies Maintenance of Status Quo Pause/Proceed with Caution Strategy No Change Strategy Profit Strategy

Growth Strategies
Internal Growth Strategy Concentric Strategies Merger Strategy Take-Over/ Acquisition Strategy Joint Venture

Nature of Strategic Management

Strategic management is the process of formulating, implementing and evaluating strategies to achieve organisational goals

Strategic Management Involves Five Steps

Step 1 : Select the corporate mission and major corporate goals. Step 2 :Analyse the opportunities and threats or constraints that exist in the external environment. Also analyse the strengths and weaknesses that exist in internal environment. Step 3 : Formulate strategies that will match the organisation's strengths and weaknesses with the environment's threats and opportunities. Step 4 : Implement the strategies. Step 5 : Evaluate and control activities to ensure that the organisation's objectives are achieved.

Steps in Strategic Management

Strategic Management Process

Step 1 - The first step in strategic management process is selecting or crafting corporate mission and corporate goal. Step2 - Environmental Scanning : The environment of an organisation comprises both external and internal factors. Environment needs to be scanned in order to determine trends and projections of factors that will affect fortunes of the organisation.

Step 3 -

Strategy Formulation : Strategies are formulated at four levels: i. Corporate level ii. Global level iii. Business unit level and iv. Functional level. Step 4 - Strategy Implementation : Strategies formulated need to be implemented. Implementation of strategies is often, more difficult than their formulation. Implementing strategies requires such actions as altering sales territories, adding new departments, closing facilities, hiring new employees, changing an organisation's pricing strategy, developing financial budgets, formulating new employee benefits, establishing cost-control procedures, changing advertising strategies, building new facilities, training new employees, transferring managers among divisions and building better computer information system etc.

Step 5 - Strategy Evaluation: Strategy evaluation helps determine the extent to which the companys strategies are successful in attaining its objectives.