Strategic Management

Lecture
Business Studies
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Strategic Management
Strategic managementanalyzes the
major initiatives taken by an organization's
top management, involvingresourcesand
performance in its environments
Strategic management is what
managers do to develop the
organizations strategies.
Its an important task involving all the basic
management functionsplanning, organizing,
leading, and controlling.

Some concepts
It entails specifying
theorganization'smission, goals and
objectives, developing policies and
plans
And in terms of projects and
programs, action plans, priorities,
and activities are designed to
achieve goals & objectives
then allocating resources to
implement the policies and plans,

What are an organizations

strategies?
the plans for what the organization
will do whatever its in business, how
it will do it
&
compete successfully to attract and
satisfy its customers in order to
achieve its goals

Why is strategic management so

important?
There are three reasons
1. it can make a difference in how well an
organization performs
2. Managers face continually changing
situations. They cope with this uncertainties
and contingencies by examining relevant
factors and decide what actions to take.
3. organizations are complex and diverse. Each
part needs to work together toward achieving
the organizations goals; strategic
management helps do this.

The strategic
management process
A six-step process that
encompasses
strategy planning, implementation,
and evaluation

Strategic Management
Process
External
Analysis:
Opportunities
Threats
Identify
Organiza
tion
missions
, goals,
and
objective
s

S
W
O
T
Internal
Analysis:
Strengths
weaknesses

Formula
te
Strategi
es

Impleme
nt
Strategie
s

Evalua
te
Result
s

 Step 1: Identifying the Organizations Current Mission, Goals, and

Strategies

Every organization needs a missiona statement of its purpose.

The mission of Facebook is a social utility that connects you with the
people around you.
Step 2: Doing an External Analysis
Analyzing external environment is a critical step in the strategic management
process

managers need to find opportunities that the organization can exploit

and;
threats that it must counteract.
Opportunities are positive trends
Threats are negative trends.

 Step 3: Doing an Internal Analysis

internal analysis provides important

information about an organizations specific
resources and capabilities.
managers should be able to identify
organizational strengths and weaknesses
Ex.. plz. Enlist organizations strengths
Ex plz. Enlist organizations weaknesses
Step 4: Formulating Strategies
Here comes the real test of a manager
The three main types of strategies;
corporate, competitive, and functional

 Step 5: Implementing Strategies

implementation phase is critical
It is to put strategies into action
How managers implement strategies?

Step 6: Evaluating Results

Whether performance has increased?
Goals accomplished?
We gained competitive edge?
We overcome weaknesses and counter threats?
We availed more opportunities and improve
strengths?
If not, then make adjustments in SM process

Q&A