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    CH 1

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    Shomser Ali Emon
    This document provides an introduction and overview of strategic management. It defines strategic management and strategy, outlines the key tasks and objectives of strategic management, and describes the strategic management process. The process involves three phases - strategy formulation, strategy execution, and strategy evaluation. It also discusses guidelines, benefits, different levels of strategies, and emphasizes that strategic management is an ongoing process essential for a firm's survival.

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    CH 1

    Uploaded by

    Shomser Ali Emon
    22 views10 pages
    This document provides an introduction and overview of strategic management. It defines strategic management and strategy, outlines the key tasks and objectives of strategic management, and describes the strategic management process. The process involves three phases - strategy formulation, strategy execution, and strategy evaluation. It also discusses guidelines, benefits, different levels of strategies, and emphasizes that strategic management is an ongoing process essential for a firm's survival.

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    Chapter 1

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    Ch 1

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    This document provides an introduction and overview of strategic management. It defines strategic management and strategy, outlines the key tasks and objectives of strategic management, and describes the strategic management process. The process involves three phases - strategy formulation, strategy execution, and strategy evaluation. It also discusses guidelines, benefits, different levels of strategies, and emphasizes that strategic management is an ongoing process essential for a firm's survival.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views10 pages

    CH 1

    Uploaded by

    Shomser Ali Emon
    This document provides an introduction and overview of strategic management. It defines strategic management and strategy, outlines the key tasks and objectives of strategic management, and describes the strategic management process. The process involves three phases - strategy formulation, strategy execution, and strategy evaluation. It also discusses guidelines, benefits, different levels of strategies, and emphasizes that strategic management is an ongoing process essential for a firm's survival.

    Copyright:

    © All Rights Reserved
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    of 10

    Chapter 1

    Introduction
    Definition of Strategy
    1. Von Neumann and Morgenstern: Strategy is a series of
    actions by firm that are decided according to the particular
    situation.
    2. Thompson and Strickland: Strategy is the pattern of
    organizational moves and managerial approaches used to
    achieve organizational objectives, and to pursue the
    organization’s mission.
    3. Sharon M. Oster: Strategy as a commitment to undertake
    one set of actions rather than another.
    Definition of Strategic Management

    1. Fred R. David: Strategic Management can be defined


    as the art and science of formulating, implementing,
    and evaluating cross-functional decisions that enable
    on organization to achieve its objectives.
    2. Byars, Rue and Zahra: Strategic management is the
    process by which top management determines the
    long time directions and performance of the
    organization by ensuring that careful formulation,
    effective implementation and continues evaluation of
    the strategy takes place
    3. M. A. Rahman: Strategic management may be
    defined as a process of analyzing, formulating,
    implementing and evaluating some set of actions
    taken or to be taken for the achievement of pre
    determined goals/ objectives of any organization.
    Guidelines for Effective Strategic
    Management

    1.No bureaucracy
    2. No ritualistic, stilted or too formal / rigid
    3. Willingness to consider new information
    4. Gaining ability for the satisfaction of
    strategists.
    5. Strategic decisions to eliminate some
    courses of action
    6. Long vs. short range strategic decisions
    Tasks or Functions of Strategic Management
    The SM process consists of five following
    interrelated managerial tasks:

    Developing Setting Crafting Execution Evaluating the


    vision & objectives strategy strategy
    mission

    Revise as Revise as Improve/Change Improve/Change Recycle to


    Needed Needed as needed as needed Tasks 1.2.3 or 4
    as Needed
    1.Developing strategic vision and business
    mission
    2. Setting objectives: Financial and Strategic
    3. Crafting strategy
    4. Execution of strategy
    5. Evaluation and control of strategy
    Objectives of Strategic Management

    1. To analyze the strategies


    2. To formulate strategies
    3. To assess strengths & opportunities
    4. To acquaint with weaknesses and threats
    5. To identify core competencies
    6. To make differentiation program
    7. To analyze competitive abilities
    8. To obtain cost effectiveness
    9. To gain leadership in technology
    10. To expand market share
    Benefits of Strategic Management
    1. Better guidance
    2. Alert management
    3. Rational evaluation
    4. Unifying numerous strategies
    5. Proactive management
    6. Identification of opportunities
    7. Objective view
    8. Framework for coordination
    9. Change minimization
    10. Major decisions
    11. Effective time allocation
    12. Minimum resource allocation
    13. Internal communication
    14. Integration behavior
    15. Basis for responsibilities
    16. Forward thinking
    17. Problem solving
    18. Favorable attitude
    19. Discipline
    Strategic Management Process/Model
    Strategic management process is composed of
    three basic phases as follows:
    1. Strategy formulation
    a. Defining the purpose and mission
    b. Establishing long range objectives
    c. Selecting the strategy
    2. Strategy execution
    a. Developing organizational structure
    b. Establishing short range objectives
    3. Strategy evaluation
    a. Establishing standards of performance
    b. Monitoring progress of execution
    c. Initiating corrective actions
    Hierarchy of Strategies

    There are four hierarchies of strategies:

    1. Corporate strategy
    2. Business unit strategy
    3. Functional strategy
    4. Operating strategy
    Strategic Management : An ongoing
    Process
    1. It is essential for the existence of firm
    2. It is not an one step process
    3. It continues from inception to end
    4. Because competitors survive in business
    5. For copying with competition strategy is
    suppose to be taken always
    6. If it is stopped, survival may be at stake

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