Strategic Management.Pdf

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Strategic Management.Pdf

By | September 2011
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What is strategic management? The set of managerial decisions and actions that determines the long-run performance of an organisation.

Strategic management

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Why strategic management is important
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The strategic management process

It results in higher organisational performance. It requires that managers examine and adapt to business environment changes. It coordinates diverse organisational units, helping them focus on organisational goals. It is very much involved in the managerial decision-making process.

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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

Figure 8.1

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Strategic management process Step 1: Identifying the organisation’s current mission, objectives, and strategies Mission: the firm’s reason for being
The scope of its products and services

Components of a mission statement
• Customers: Who are the organisation’s customers? • Products or services: What are the organisation’s major products or services? • Markets: Where does the organisation compete geographically? • Technology: How technologically current is the organisation? • Concern for survival growth, and profitability: Is the organisation committed to growth and financial stability? • Philosophy: What are the organisation’s basic beliefs, values, aspirations, and ethical priorities? • Self-concept: What is the organisation’s major competitive advantage and core competencies? • Concern for public image: How responsive is the organisation to societal and environmental concerns? • Concern for employees: Does the organisation consider employees a valuable asset? Source: Based on F. David, Strategic Management, 8th ed. (Upper Saddle River, NJ:...