What is Strategic Management ? Strategic Management can be defined as the art and science of : • formulating, • implementing, and • evaluating
competitive moves and business approaches that enable an organization to achieve its objectives.
The Strategy-Making, Strategy-Executing Process
Developing Developing A Strategic A Strategic vision vision
Crafting a Monitoring Strategy to Implementing developments, evaluating Achieve the and executing Objectives the strategy performance & making And vision corrective adjustments
Revise as needed in light of actual performance, changing conditions
External Environment Analysis
Aim is to identify : • Opportunity (Competitive possibilities) : a condition which will help a firm achieve strategic competitiveness. • Threat ( Potential constraints ) : a condition that may hinder a firm’s efforts to achieve strategic competitiveness.
BASIC ANALYTICAL TOOLS FOR EXTERNAL ENVIRONMENT ANALYSIS
PESTEL Analysis Degree of turbulence
Company / Public Sector Organization
Five Forces Analysis Source : Lynch
Internal Environment Analysis
Internal Environment Analysis includes :
• Recognizing what are, and what are not the firm’s core competencies. • Exploiting core competencies that will create value for customers.
Financial The firm’s borrowing capacity Ability to generate internal funds Firm’s reporting structure and formal planning , controlling systems Location of a firm’s plant & equipment Access to raw materials
Intangible Resources Knowledge Human
Trust Managerial capabilities Organizational routines Ideas Scientific...