STRATEGIC MANAGEMENT Complete Notes

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Reference book: Strategic management concepts and cases by Fred R. David

Course Outline
INTRODUCTION TO STRATEGIC MANAGEMENT 3
NATURE OF STRATEGIC MANAGEMENT 6
KEY TERMS IN STRATEGIC MANAGEMENT 8
BENEFITS OF STRATEGIC MANAGEMENT 13
COMPREHENSIVE STRATEGIC MODEL 16
Characteristics of Vision & Mission Statement 18
EXTERNAL ASSESSMENT 23
INDUSTRY ANALYSIS 26
INTERNAL FACTOR EVALUATION (IFE) MATRIX 30
FUNCTIONS OF MANAGEMENT: 37
TYPES OF STRATEGIES 44
INTEGRATION STRATEGIES: 47
HORIZONTAL INTEGRATION 50
MICHAEL PORTER'S GENERIC STRATEGIES 51
INTENSIVE STRATEGIES 55
DIVERSIFICATION STRATEGIES 57
DEFENSIVE STRATEGIES 59

INTRODUCTION TO STRATEGIC MANAGEMENT

What is strategic management?
Strategic Management can be defined as “the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective.”

Definition:
“The on-going process of formulating, implementing and controlling broader plans that guide the organization in achieving the strategic goals given its internal and external environment”.

Interpretation:

1. On-going process:
Strategic management is an on-going process which is in existence throughout the life of organization.

2. Shaping broad plans:
First, it is an on-going process in which broad plans are firstly formulated than implementing and finally controlled.
3. Strategic goals:
Strategic goals are those which are set by top management. The broad plans are made in achieving the goals.

4. Internal and external environment:
Internal and external environment generally set the goals. Simply external environment forced internal environment to set the goals and guide them that how to achieve the goals?
How the strategic management show:

On-going

Process

Shaping & achieving broad plans

Broad plans are for achieving strategic

Influenced

External Environment

Forced

Top management or Internal Environment to achieve

Environment Scanning

Strategy Formulation

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