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Lec 01

The document discusses strategic management. It begins by outlining the learning objectives which are to understand the strategic management process, appreciate the need to integrate intuition and analysis, and understand how to adapt to changing scenarios. It then provides an overview of the nature of strategic management, noting the importance of globalization, e-commerce, and environmental issues. The document outlines the key phases of strategic management as strategy formulation, implementation, and evaluation. It discusses considerations and steps involved at each phase. The summary emphasizes the integration of functions, continuous modification, and balancing of intuition and analysis required for strategic management.

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Shahzad Aslam Shahbaz
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13 views24 pages

Lec 01

The document discusses strategic management. It begins by outlining the learning objectives which are to understand the strategic management process, appreciate the need to integrate intuition and analysis, and understand how to adapt to changing scenarios. It then provides an overview of the nature of strategic management, noting the importance of globalization, e-commerce, and environmental issues. The document outlines the key phases of strategic management as strategy formulation, implementation, and evaluation. It discusses considerations and steps involved at each phase. The summary emphasizes the integration of functions, continuous modification, and balancing of intuition and analysis required for strategic management.

Uploaded by

Shahzad Aslam Shahbaz
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
You are on page 1/ 24

Strategic

Management

Lecture - 1
Learning Objectives

• Understanding the strategic management


process
• Appreciating the need for integrating intuition
and analysis in strategic management
• Understanding the importance of adapting to
changing scenarios

2
Strategic Management:
Its Nature
• Globalization: Survival for businesses

• E-commerce: Now an essential business


tool

• Earth’s environment has become a major


strategic issue

3
Strategic Management:
Route to Success
It integrates:
• Marketing

• Management

• Finance

• Research & Development


4
Strategic Management:
Route to Success
It integrates:

• Productions/Operations

• Information Systems

• Other functional areas


5
Terminology
“Strategic Management”
Same as
“Strategic Planning”

• Strategic management
Used more often in academic circles

• Strategic planning
Used more often in the business world
6
Terminology
• Strategic management
Refers to:
• Strategy formulation
• Strategy implementation
• Strategy evaluation

• Strategic planning
Refers to:
• Strategy formulation
7
Brief History
• 1950s
Term strategic planning originates

• 1960s – 1970s
Strategic planning very popular
 Widely viewed as panacea for problems

8
Brief History
• 1980s
Strategic planning cast aside
 Planning models did not yield higher returns

• 1990s–2000
Revival of strategic planning
 Widely practiced in business world

9
Strategic Management:
Its three phases

1. Strategy Formulation

2. Strategy Implementation

3. Strategy Evaluation

10
Strategy Formulation

• Vision & Mission

• Strengths & Weaknesses

• Opportunities & Threats

11
Strategy Formulation

• Setting Long-term Goals

• Generating Possible Strategies

• Selecting a strategy

12
Strategy Formulation
Considerations:

• Allocation of resources
• Businesses to enter/retain
• Businesses to divest/liquidate

13
Strategy Formulation
Considerations:
• Joint ventures/mergers
• Whether to expand/diversify
• Opening foreign markets
• Avoiding takeovers

14
Strategy Implementation

• Policies
• Annual Objectives
• Resource Allocation
• Employee Motivation

15
Strategy Implementation
This is the action phase:
• Requires consensus to pursue the goals
• Includes developing a supportive culture
• Interpersonal & managerial skills are critical
• Requires high overall motivation

16
Strategy Implementation
• Toughest of all phases, it needs:
- Personal discipline
- Commitment
- Sacrifice
• Challenge: Inspiring everyone to work
with pride and enthusiasm
• Creating effective organizational structure

17
Strategy Evaluation

Fundamental Activities:
• Internal assessment
• External assessment
• Measuring performance
• Remedial measurers/Fine tuning

18
Strategy Evaluation

Last phase of strategic management:


• Today’s success does not assure success
tomorrow
• Continuous Modification of strategies
• Success itself leads to new problems
• Smugness can bring organizational disaster

19
Prime Task

Peter Drucker says:


“The prime task is to think through the overall
mission of a business”.

Ask the question:


What is our Business?

20
Intuition & Analysis
Strategic management tries to bring together
qualitative and qualitative information

Intuition rests on:


- Past experiences
- Judgment
- Feelings

21
Intuition & Analysis

Helps in decision making where:


• Uncertainty prevails
• Little or no precedence exists
• Highly interrelated variables exist

• A choice from various possible


alternatives is needed

22
Intuition & Analysis

• Intuition and analytical judgment requires


inputs from all managerial levels

• Analytical thinking and intuitive thinking


complement one another

23
Intuition & Analysis

“ Imagination is more important than


knowledge, because knowledge is limited,
whereas imagination embraces the entire
world.”
. . . . Albert Einstein

24

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