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8 Strategic Management

The document summarizes a lecture on strategic management. It defines strategic management as managers' activities to develop an organization's strategies, involving planning, organizing, leading, and controlling. The strategic management process includes identifying the mission, doing external and internal analysis (SWOT analysis), formulating strategies, implementing strategies, and evaluating results. Finally, the document outlines three corporate strategy types: growth strategies to expand markets or products, stability strategies to maintain current operations, and renewal strategies like retrenchment or turnaround to address declining performance.

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кристина раджабова
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59 views6 pages

8 Strategic Management

The document summarizes a lecture on strategic management. It defines strategic management as managers' activities to develop an organization's strategies, involving planning, organizing, leading, and controlling. The strategic management process includes identifying the mission, doing external and internal analysis (SWOT analysis), formulating strategies, implementing strategies, and evaluating results. Finally, the document outlines three corporate strategy types: growth strategies to expand markets or products, stability strategies to maintain current operations, and renewal strategies like retrenchment or turnaround to address declining performance.

Uploaded by

кристина раджабова
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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2019. 11. 12.

Strategic management

Management and Organization


12/11/2019

Mark Gal PhD


senior lecturer
Institute of Social Sciences and International Relations

What’s on today’s „menu”?

 What is strategic management?

 Strategic management process;

 Corporate strategy types;

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2019. 11. 12.

1. What is strategic management?


 managers activity in order to develop an organization’s
strategies
 it involves all the basic management functions
(planning, organizing, leading, controlling);
Strategy: the decisions and actions that determine the
long-run performance of an organization;
Business model: a strategic design for how a company
intends to profit from its strategies, work processes, and
work activities;
• it focuses on: (1) whether customers will value what the
company is providing; (2) whether the company can
make any money doing that;

1. What is strategic management?


 Why is it important?
- it results in higher organizational
performance;
- it requires that managers examine and adapt to
business environment changes;
- it coordinates diverse organizational units,
helping them focus on organizational goals;
• the company can make any money doing that;

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2019. 11. 12.

2. The process

Source: Robbins, S. – Coulter, M. (2012), p. 226

2. The process
• Step 1: Identifying the current mission: every
organization needs a mission-statement
(reminder from the 1st chapter) of its purpose.
These statements provide clues to what these
organizations see as their purpose.
• Step 2: Doing an external analysis: the
environmental scanning of specific and
general environments (it involves identifying
opportunities and threats);

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2019. 11. 12.

2. The process
• Step 3:
Doing an internal analysis: assessing
organizational resources, capabilities and
activities (strengths create value for the
customer and strengthen the competitive
position of the organization / weaknesses can
place the company at a competitive
disadvantage)
Stept 2 + 3 combined = SWOT analysis

2. The process
• Step 4:
Formulating strategies: develop and evaluate
strategic alternatives;
- select appropriate strategies for all levels in
the organization that provide relative
advantage over competitors;
- match organizational strengths to
environmental opportunities;
- correct weaknesses and guard against threats;

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2019. 11. 12.

2. The process
• Step 5: implementation
- effectively fitting organizational structure to the
environment;
- the environment dictates the chosen strategy;
effectve strategy implementation requires an
organizational structure matched to its
requirements;
• Step 6: evaluating results
- how effective have strategies been?
- what adjustments if any are necessary?

3. Corporate strategy types


a) Growth:
when an organization expands the number of
markets served or products offered, either
through its current business(es) or through
new business(es);
Because of its growth strategy, an organization
may increase revenues, number of employees,
or market share;

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2019. 11. 12.

3. Corporate strategy types


b) Stability: corporate strategy in which an organization
continues to do what it is currently doing;
- in other words: the organization doesn’t grow, but
doesn’t fall behind, either;
c) Renewal: these address declining performance; it can
be done via:
- a retrenchment strategy is a short-run renewal strategy
used for minor performance problems; this strategy
helps an organization stabilize operations, revitalize
organizational resources and capabilities;
- a turnaround strategy: when an organization’s
problems are more serious;

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