Topic 2 - The Concepts of Strategic Management
Topic 2 - The Concepts of Strategic Management
Topic 2 - The Concepts of Strategic Management
evaluation.
External and
Strategy Strategic
Internal Strategic Direction
Formulation Implementation
Environmental
& Control
Analysis
External and Internal Environmental Analysis
A well-established strategic direction provides guidance to the managers and employees who are
largely responsible for carrying it out as well as a greater understanding of the organization for
the external stakeholders with whom the organization interacts.
Business strategy formulation pertains to domain direction and navigation or how businesses
compete in the areas they have selected.
On the other hand, corporate strategy formulation refers primarily to domain definition or the
selection of business areas in which the organization will compete.
For example, in diversified organizations are involved in several different businesses and serve a
variety of customer groups. In the functional strategy formulation, it pertains to how the
functional areas such as marketing, operations, finance and research should work together to
achieve the business-level strategy.
https://www.youtube.com/watch?v=0wVAPXswE6E
Strategy implementation & Control
• Managers may collect new information that leads them to re-evaluate their
assessment of the environment.
Non-Financial
Identification, To Differentiate Financial Benefits Benefits
Strategic management has now evolved to the point that its primary value is to enable the
organization to operate successfully in a dynamic, complex environment.
Managers at all levels are expected to continually analyze the changing industry they
are in, in order to create or modify strategic plans throughout the year.
Managers have to do more than set long-term strategies; they must go through
"incremental management" in the sense that they have to make fine tuning and incremental
adjustments (emergent change) to improve the efficiency of the firm's operations to meet
the challenges of the environmental forces of change.
2.4 Strategic Management &
rapidly growing Environment
Sometime the forces of change can exert pressure on managers to make major changes in the firm's
strategic direction. If the firm does not make the necessary changes, it may not be able to sustain
its competitive advantage.
Therefore, for a company to maintain its sustainable competitive advantage it must develop
strategic flexibility in order to be able to shift from one dominant strategy to another.
Strategic flexibility demands a long-term commitment to the development and nurturing of critical
resources.
It also demands that the company becomes a learning organization i.e. an organization skilled at creating,
acquiring and transferring knowledge and at modifying its behavior to reflect new knowledge and
insights.
Learning Organizations:
2.4 Strategic This is because the management believed that the current
strategy is still appropriate and needs only some "fine tuning".
Management
& rapidly
However some triggering events may act to stimulate for a
growing change in strategy such as:
environment New CEO
External intervention
Threat of a change in ownership
Performance gap
Quiz
Q1: Strategic Management Process Model Includes the
following processes , except :
A. Financial Benefits
B. Exploration Benefits
C. Differentiation Benefits
D. Non-Financial Benefits
E. Non of the above
Quiz
• Q3: It refers to the process that leads to adjustments in the
strategic direction , strategies or the implementation plan when
necessary.
A. New CEO
B. External intervention
E. Performance gap
Thanks!
Strategic Management -2024 Dr. Khaled Mohamed Khaled