Strategic

Management Process

• The figure signifies the strategic management process which outlines how an
organization formulates, implements, and evaluates systems and processes
for efficient and effective company performance.

- Includes environmental scanning (both internal and external environment)
- Provides information necessary to formulate the company’s mission/vision
statement

a) internal – refers to employee interactions with one another regardless of rank
b) external – refers customers, suppliers, creditors, and competitors

To provide a better picture of Organizational Culture, the INTERNAL environment is
observed by tracing how relationships are formed and enhanced. Their behavior is
observed using different techniques like interview, and focus group discusiion

In the EXTERNAL environment, customers, suppliers, competitors are observed.
- Who are the customers? and
- Who are the direct and indirect competitors?
- What is the relationship of the company and the suppliers?

External Environment: Characteristics of consumers
• Nokia was trying to make its cellphone battery’s life span, and increased the
pixel of mobile phones to reach the cameras’ standard . The executives
focused on products and technology a lot, ignoring that the needs of
consumers have changed with the market showing different
characteristics.
• Decision-making that wasn’t based on consumer’s demand lead Nokia
not only to separate itself from the market, but also ignore the real needs of
consumers.




There Is a Deviation in the Business Tactic of the Company
• The traditional 4P theory (including product, price, place, promotion)
transformed into 4C theory (including Consumer, Cost, Communication,
Convenience) gradually.
• It means that companies should pay more attention to the products as
well as the consumer needs,

• Nokia has valued the hardware business a lot and neglected the software
business over a long period of time.
• If Nokia could adopt an open attitude to treat the innovation of the operating
system and cooperated with Google Android, thus Nokia may haven’t come to
such a situation.
• The biggest mistake that Nokia made was refusing to cooperate with
other mobile phone manufacturers in its business process.

The Companies Should Make the Right Business Tactic
• Business tactic means that in our competitive environment, everything must
be adjusted to the changes of the internal conditions and the external
environment.
• So investigate and analyze the external environment and internal
conditions of enterprises, and eventually have a clear direction about how
to enhance its own strength.

Ø Current enterprises must have a win-win idea and put it into action.
Ø Executives must take note of this principle:
“To take a small step back is to take a big step forward”
Ø Win-win does not only help companies to preserve their own in the
competitive environment, but also establish business partnerships to seek
support for the future development.

Strategy
It has been studied for years by business leaders and by business theorists. Yet,
there is no definite answer about what strategy really is.
• Reason: People think about strategy in different ways.

Definitions:

Gerry Johnson and Kevan Scholes, authors of "Exploring Corporate Strategy," say
that
“Strategy determines the direction and scope of an organization over the long term,
and they say that it should determine how resources should be configured to meet
the needs of markets and stakeholders.”

Michael Porter, a strategy expert and professor at Harvard Business School,
emphasizes the need for strategy.
“ It is how to define and communicate an organization's unique position, and should
determine how organizational resources, skills, and competencies should be
combined to create competitive advantage.”

• For instance, many successful and productive organizations have a corporate
strategy to guide the big picture.
• Each business unit within the organization then has a business unit strategy,
which leaders use to determine how they will compete in their individual
markets.
• In turn, each team should have its own strategy to ensure that its day-to-day
activities help move the organization in the right direction.
• Experts have this definition of strategy:
"Determining how we are going to win in the period ahead."

There are six “strategy” questions all good leaders must answer.
• Why do we exist?
• How will we behave?
• Where are we going?
• How will we succeed?
• What is most important right “now”

Strategy Formulation is composed of 3 organizational levels:
1) Operational
2) Competitive/Business Unit
3) Corporate

LEVELS OF STRATEGY
1) Business Unit strategy
• Also known as ‘Competitive Strategy’, it decides the tactics to beat/ overcome
the competition.
• Is about how to compete successfully in particular markets.
• The concerns are about competitors, opportunities and new products or
services.

• As a leader, one must first ask the question, “How will we succeed
• Concerned with competing successfully in individual market "How do we
win in this market?”

2) Operational strategy
• Also called the ‘Go-to-Market Strategy’ or ‘Functional Strategy’,
• It decides the operational methods to implement the tactics. Are concerned
with how the component parts of an organization deliver effectively the
corporate and business-level strategies in terms of resources, processes and
people.


3) Corporate level strategy
• In business, corporate strategy refers to the overall strategy of an
organization that is made up of multiple business units, operating in multiple
markets.
• How the corporation as a whole supports and enhances the value of the
business units within it.
• It answers the question,
"How do we structure the overall business, so that all of its parts create more
value together than they would individually?"

SWOT Analysis
• is a useful technique for understanding your Strengths and Weaknesses,
and for identifying both the Opportunities open to you and the Threats you
face.
• combines analysis of the external and internal environment of the
organization

SWOT analysis is presented as a matrix consisting of four quadrants:
• “Strengths” (S) are determined as organizational capabilities, competitive
advantages or available resources that can be used;
• “Weaknesses” (W) are determined as the absence of skills, low on levels of
competence, weaknesses, shortcomings or lack of resources;
• “Opportunities” (O) are represented as situations in which external benefits
are absolutely clear and there is a great opportunity to realize if an
organization take certain actions;
• “Threats” (T) are represented as situations that lead to potentially harmful to
the organization external events and results if appropriate actions are not
taken.


Why SWOT Analysis?

“YOU WERE BORN TO WIN, BUT FOR YOUTO BE A WINNER,
YOU MUST PLAN TO WIN
PREPARE TO WIN
AND EXPECT TO WIN.” Zig Ziglar

Why SWOT Analysis?
-to capitalize on your strengths
-to overcome weaknesses
-to exploit opportunities
-to survive threats
-to be pro-active
-to take better decisions


You are most likely to succeed in life if you use your talents to their fullest extent.
Similarly, you'll suffer fewer problems if you know what your weaknesses are, and
if you manage these weaknesses so that they don't matter in the work you do.


• What makes SWOT especially powerful is that, it can help you uncover
opportunities that you would not otherwise have spotted.
• By understanding your weaknesses, you can manage and eliminate
threats that might otherwise hurt your ability to move forward.

There are achievers who have struggled with their weakness. Some of these people
were rejected by society because they were termed Weak.
However, they did not dwell on their condition but turned their weakness into an
asset.

Below are people who turned their weakness to an asset.

Nick Vujicic
• The adorable Nick was born with tetra-amelia syndrome, a rare disorder
characterized by the absence of all four limbs. Nick struggled with this
disability during his childhood years. It was only when he came to terms to
his condition, that he saw his disability as an opportunity.
• Nick at the age of 17 started a Non-profit organisation. Life Without Limbs.
Nick has written four inspirational books. He is a motivational speaker and
his message has been about life with a disability.

Bruce Willis
• Bruce suffered from a severe stutter for the very first 20 years of his life. This
condition was one of his greatest advantage. He is known as a mega star
actor and his action packed kicking butt characters in movies .
• He is also a singer as well as a producer and won an Emmy Award for
Moonlightning in 1987. His stuttering gave him a sense of humor and
enabled him to make people laugh.

Lizzie Velasquez
• Lizzie was born without an adipose tissue which never made her gain weight.
Despite her struggles with bullies, awful stares, being ridiculed and was
even termed The Ugliest On The Internet, Lizzie didn’t despair.
• She became an author of two books and a motivational speaker. Rather than
focus on the event, she discovered her purpose on earth. She also has
a YouTube channel where she addresses the issue of true beauty.







Richard Branson
• At a time when Dyslexia was not popular and was known by only a few,
Branson was never a bright student in school. He was thought to be lazy by
his teachers and always felt bored with learning.
• However using Dyslexia as an advantage, Branson is the only entrepreneur in
the world to have built eight billion-dollar companies from scratch in eight
different countries. Starting with a Magazine called Student at the age of 16,
then venturing into Virgin records, a chain of record stores and finally being
the founder of Virgin Atlantic which compromises of more than 400
companies, Branson is a business man and an investor.
•
Thomas Edison
• During Edison’s school days, he was known to have a wavering mind; his
focus was poor and he had difficulty with speech and words. Yet with all
these conditions, Thomas became a prolific inventor and businessman
holding 1093 patents in the US as well as United Kingdom, France, and
Germany. His inventions include electric light, power utilities, sound
recording, and motion pictures.
•