STRATEGIC MANAGEMENT

LEARNING OBJECTIVES
1. Discuss the concept of strategic management
2. Identify the key terms involved in STRAMA
3. Conceptualize the Strategic Management Model
4. Identify the benefits of Strategic Management
5. Analyze the reasons of some firms non participation in STRAMA
6. Identify pitfalls in STRAMA
7. Identify the guidelines in effective STRAMA
What is 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
objectives. As this definition implies, strategic
management focuses on integrating
management, marketing, finance/accounting,
production/operations, research and
development, and information systems to
What is STRATEGIC MANAGEMENT?

STRATEGIC MANAGEMENT is
used to refer to strategy
formulation, implementation,
and evaluation, with strategic
planning referring only to
strategy formulation.
What is STRATEGIC MANAGEMENT?

STRATEGIC MANAGEMENT is
used to refer to strategy
formulation, implementation,
and evaluation, with strategic
planning referring only to
strategy formulation.
 01

STRATEGIC
MANAGEMENT
MODEL
STRATEGIC MANAGEMENT MODEL
1 SCANNING
To know your position in the environment
To respond effectively to constant change
To see the organization as a whole
To avoid surprises
To survive
To lay the foundation for strategic issues

KEY ENVIRONMENTAL VARIABLES

Macro Environment: STEP, PESTEL, SWOT
Task Environment: Industry Analysis
Strategy Formulation
It includes developing a vision and
mission, identifying an organization’s
external opportunities and threats,
determining internal strengths and
weaknesses, establishing long-term
objectives, generating alternative
strategies, and choosing particular
strategies to pursue.
2 STRATEGY FORMULATION
Stage where you will analyse strategies
using different matrix to be use as basis.
External Factor Evaluation (EFE) Matrix
Competitive Profile Matrix (CPM)
Internal Factor Evaluation (IFE) Matrix
Strengths Weaknesses Opportunities Threats (SWOT) Matrix
Strategic Position and Action Evaluation (SPACE) Matrix
Boston Consulting Group (BCG) Matrix
Internal-External (IE) Matrix
Grand Strategy (GS) Matrix
Quantitative Strategic Planning Matrix (QSPM)
Strategy Implementation
It requires a firm to establish
annual objectives, devise
policies, motivate employees,
and allocate resources so that
formulated strategies can be
executed.
3 STRATEGY IMPLEMENTATION

How do we get
there?
Work Action Plans
RECOMMENDED
Strategy Evaluation
The final stage in Strategic
Management. Three fundamental
strategy-evaluation activities are (1)
reviewing external and internal factors
that are the bases for current strategies,
(2) measuring performance, and (3)
taking corrective actions.
4 MEASUREMENT/PERFORMANCE
Why do we measure our progress?

Proactive Reasons
Makes us more responsive to public needs
Provides feedback on mission Reactive Reasons
accomplishment Government Intervention
Creates blueprint for linking budget to Fewer Resources and Smaller Budgets
outcomes Increased Demand for Accountability
Good management and good public policy Mandated
 02

KEY TERMS
in
STRAMA
1 COMPETITIVE ADVANTAGE
This term can be defined as “anything that a firm does
especially well compared to rival firms.” When a firm can
do something that rival firms cannot do, or owns
something that rival firms desire, that can represent a
competitive advantage.

2 STRATEGISTS
Are the individuals who are most responsible for the
success or failure of an organization. Strategists have
various job titles, such as chief executive officer, president,
owner, chair of the board, executive director, chancellor,
dean, or entrepreneur
3 VISION & MISSION STATEMENT
A vision statement that answers the question “What do we want to
become?” Developing a vision statement is often considered the first step
in strategic planning, preceding even development of a mission statement.
Mission statements are “enduring statements of purpose that
distinguish one business from other similar firms. A mission statement
identifies the scope of a firm’s operations in
product and market terms.”

4 EXTERNAL OPPORTUNITIES & THREATS

External opportunities and external threats refer to economic, social,
cultural, demographic, environmental, political, legal, governmental,
technological, and competitive trends and events that could significantly
benefit or harm an organization in the future. Opportunities and threats
are largely beyond the control of a single organization—thus the word
external.
5 INTERNAL STRENGHT & WEAKNESSES
Internal strengths and internal weaknesses are an organization’s controllable
activities that are performed especially well or poorly. They arise in the
management, marketing, finance/accounting, production/operations, research and
development, and management information systems activities of a business.

6 LONG-TERM OBJECTIVES
Objectives can be defined as specific results that an organization seeks to
achieve in pursuing its basic mission. Long-term means more than one year.
Objectives are essential for organizational success because they state direction; aid
in evaluation; create synergy; reveal priorities; focus coordination; and provide a
basis for effective planning, organizing, motivating, and controlling activities.
Objectives should be challenging, measurable, consistent, reasonable, and clear.
7 STRATEGIES
Strategies are the means by which long-term objectives will be achieved.
Business strategies may include geographic expansion, diversification, acquisition,
product development, market penetration, retrenchment, divestiture, liquidation, and
joint ventures.

8 POLICIES
Policies are the means by which annual objectives will be
achieved. Policies include guidelines, rules, and procedures
established to support efforts to achieve stated objectives.

Policies are guides to decision making and address repetitive or

recurring situations.
 03
Comprehensive
Strategic
Management
Model
 04

Benefits of
Strategic Management
 Benefits
Strategic managementallows an
organization to be more proactive
than reactive in shaping its own
future; it allows an organization to
initiate and influence (rather than just
respond to) activities—and thus to exert
control over its own destiny.

Historically, the principal benefit of

strategic management has been to help
organizations formulate better
strategies through the use of a
Benefits of STRATEGIC MANAGEMENT
Greenley stated that strategic management
offers the following benefits:
1. It allows for identification, prioritization, and exploitation of opportunities.
2. It provides an objective view of management problems.
3. It represents a framework for improved coordination and control of activities.
4. It minimizes the effects of adverse conditions and changes.
5. It allows major decisions to better support established objectives.
6. It allows more effective allocation of time and resources to identified opportunitie
7. It allows fewer resources and less time to be devoted to correcting erroneous
or ad hoc decisions.
8. It creates a framework for internal communication among personnel.
9. It helps integrate the behaviour of individuals into a total effort.
10. It provides a basis for clarifying individual responsibilities.
11. It encourages forward thinking.
12. It provides a cooperative, integrated, and enthusiastic approach to tackl
problems
and opportunities.
13. It encourages a favourable attitude toward change.
14. It gives a degree of discipline and formality to the management of a business.
 05
Why some FIRMS
don’t used
STRATEGIC
MANAGEMENT
Some firms do not engage in strategic planning, and some firms do
strategic planning but receive no support from managers and
employees. Some reasons for poor or no strategic planning are as
follows:
1. Lack of Knowledge or Experience in Strategic
Planning
2. Poor reward structures
3. Firefighting
4. Waste of Time
5. Too Expensive
6. Laziness
7. Fear of Failure Overconfidence
8. Prior Bad Experience
9. Self-interest Fear of the Unknown
10.Honest difference of opinion
 06

PITFALLS IN
Strategic Planning
Pitfalls in STRATEGIC PLANNING

Strategic planning is an involved, intricate, and

complex process that takes an organization into uncharted
territory. It does not provide a ready-to-use prescription for
success; instead, it takes the organization through a
journey and offers a framework for addressing questions
and solving problems. Being aware of potential pitfalls and
being prepared to address them is essential to success.
Pitfalls in STRATEGIC PLANNING
1. Using strategic planning to gain control over decisions and
resources
2. Doing strategic planning only to satisfy accreditation or
regulatory requirements
3. Too hastily moving from mission development to strategy
formulation
4. Failing to communicate the plan to employees, who continue
working in the dark
5. Top managers making many intuitive decisions that conflict
with the formal plan
6. Top managers not actively supporting the strategic-planning
process
Pitfalls in STRATEGIC PLANNING
7. Failing to use plans as a standard for measuring
performance
8. Delegating planning to a “planner” rather than involving all
managers
9. Failing to involve key employees in all phases of planning
10. Failing to create a collaborative climate supportive of
change
11. Viewing planning as unnecessary or unimportant
12. Becoming so engrossed in current problems that
insufficient or no planning is done
13. Being so formal in planning that flexibility and creativity are
stifled
 07

Guidelines in Effective

Strategic-Planning
Guidelines
1. It should be a people process more than a paper process.
2. It should be a learning process for all managers and employees.
3. It should be words supported by numbers rather than numbers
supported by words.
4. It should be simple and no routine.
5. It should vary assignments, team memberships, meeting formats, and
even the planning calendar.
6. It should challenge the assumptions underlying the current corporate
strategy.
7. It should welcome bad news.
8. It should welcome open-mindness and a spirit of inquiry and learning.
9. It should not be a bureaucratic mechanism.
Guidelines
10. It should not become ritualistic, stilted, or orchestrated.
11. It should not be too formal, predictable, or rigid.
12. It should not contain jargon or arcane planning language.
13. It should not be a formal system for control.
14. It should not disregard qualitative information.
15. It should not be controlled by “technicians.”
16. Do not pursue too many strategies at once.
17. Continually strengthen the “good ethics is good business”
policy.
CONCLUSION
All firms have a strategy, even if it is
informal, unstructured, and sporadic. All
organizations are heading somewhere,
but unfortunately some organizations do
not know where they are going.

Organizations should take a proactive

rather than a reactive approach in their
industry, and they should strive to
influence, anticipate, and initiate rather
than just
respond to events.
The strategic-management process
embodies this approach to decision
making. I
REFERENCES
BOOK
Strategic Management of Fred
David

STRATEGIC MANAGEMENT
https://www.youtube.com/watch?v=g-wf
6A0ailA
STRATEGIC MANAGEMENT OF HILTON HOTELS AND RESORTS
https://www.youtube.com/watch?v=ThZFTtBqk1o

STRATEGIC MANAGEMENT PROCESS

https://www.youtube.com/watch?v=r7yu2
CHiPVU
THANK
YOU!