SPDM1

8/4/2019 SPDM1

http://slidepdf.com/reader/full/spdm1 1/21

Strategic management is not a box

of tricks or a bundle of techniques. It

is analytical and commitment of

resources to action.

Peter Drucker

8/4/2019 SPDM1


Strategic Management Process

� The task of crafting, implementing, andexecuting the company strategies are the

heart and soul of managing a business

enterprise.

8/4/2019 SPDM1



A companys strategy is the game planmanagement is using to stake out a market

position, conduct its operations, attract and

please its customers, compete successfully,

and achieve organizational objectives.

8/4/2019 SPDM1



In crafting strategy management is saying

Among all paths and option we could have

chosen, we have decided to move in thisdirection, focus on these markets and

customer needs, compete in this fashion,

allocate our resources and energies in these

ways, and rely on these particular approaches

to doing business.

8/4/2019 SPDM1



Business Model.

A term widely applied to managements plan

for making money in particular business.

Strategy.

Relates to companys initiatives and businessapproaches (irrespective of financial and

competitive outcomes it produces),

8/4/2019 SPDM1



Why need strategy.

1.There is compelling need for managers to

proactively shape who the company businesswill be conducted.

2. There is equally compelling need to mold the

efforts and decisions of different divisions,

departments, managers, and groups into a

coordinated ,compatible whole.

8/4/2019 SPDM1



Good Management.

Good strategy and good

strategy execution

8/4/2019 SPDM1



�

The five task of strategic management.1. Forming a strategic vision of where the

organization is headed.

2. Setting objectives.3. Crafting strategy to achieve the desired out

come.

4. Implementing and executing the chosenstrategy efficiently and effectively.

8/4/2019 SPDM1



5. Evaluating performance and initiatingcorrective adjustment in the vision, long term

direction, objectives, strategy, or execution in

light of actual experience, changingconditions, new ideas, and new opportunities.

8/4/2019 SPDM1



� Developing strategic vision.

A strategic vision reflects managements

aspirations for the organization and its business

providing a panoramic view of where we are

going and giving specifics about its futurebusiness plan. It spells out long term business

purpose and mold organizational identity.

A strategic vision points an organization in aparticular direction and charts a strategic path

to follow.

8/4/2019 SPDM1



� A strategic vision portrays companys future

business scope (where we are going)

� Companys mission statement describe its

present business scope (who we are and

what we do)

8/4/2019 SPDM1



�

Why strategic vision. ± Look beyond today, technology, customer need

and expectations, how to compete, internal and

external factors.

There is no escaping the

need for strategic vision

8/4/2019 SPDM1



� Setting objectives, is to convert managerial

statement of strategic vision and business

mission into specific performance targets-

results and outcomes the organization want toachieve.

� Setting objectives and then measuringwhether they are achieved or not help

managers track an organization progress.

8/4/2019 SPDM1



� Crafting a strategy.

A strategy reflects managerial choices amongs

alternatives and signals organizational

commitment to particular products, markets,

competitive approaches, and ways of operating the enterprise.

Objectives are the ends and strategy is the means of achieving them.

8/4/2019 SPDM1



� What does company strategy consist of? ± Planned actions and initiatives to outcompete rivals.

± Moves to react and respond to changing external circumstances.

± Action to alter geographic coverage.

± Action to merge with or acquire a rival company to strengthen the

company business position.

± Action to form strategic alliances and collaborative partnerships.

± Action to capitalize on new opportunities or to defend against threats

to the companys well being.

± Action and approaches that define how the company manages R&D,

production, sales and marketing, finance, and other key functions.

± Action to strengthen the companys resource base and competitive

capabilities.

± Action to diversify the companys revenue base and enter all together

new industries or businesses.

8/4/2019 SPDM1



� Why Company Strategies Evolve.

External and internal events make it common place

to initiate fresh strategic moves and business

approaches of one kind or another in one part of

organization or another, an organizations strategy re-form over time as the number of changes and

adaptation begin to mount.

Strategy making is an on-going

process, not a one-time event

8/4/2019 SPDM1



� Strategic Plan

Consist of an organizations mission

and future direction, near-term

performance targets and strategy.

8/4/2019 SPDM1



� Implementing and executing the strategy.+ Building an organization capable of carrying out the strategy.

+ Allocating company resources so that organizational units charged with

performing strategy-critical activities and implementing new strategic

initiative have sufficient people and funds to do their work successfully.

+ Establishing strategy supportive policies and operating procedures.

+ Putting a freshly chosen policy into place.

+Motivating peoples in ways that induce them to pursue the targetsobjectives

energetically and, if need be, modifying their duties and jobsbehavior to

better fit the strategy requirements of successful execution.

+ Tying the reward structure to the achievement of targeted results.

+ Creating a company culture and work climate conducive to sucessful

strategy implementation.

+ Installing information, communication, and operative systems that enable

company personnel to carry out their strategic rule effectively.

8/4/2019 SPDM1



+ Instituting best practices and program for continuous improvement.

+ Exerting internal leadership needed to drive implementation forward and to

keep improving on how the strategy is being executed.

Good strategy execution involves creating a strong fit between the

way things are done internally and what it will take for the strategy to

succeed.

The strategy implementing/strategy executing task is easily the most

complicated and time-consuming part of strategic management.

8/4/2019 SPDM1



� Evaluating performance, Monitoring new

developments, and initiating correctiveadjustments.

It is always incumbent on management toevaluate the organizations performance and

progress. It is managements duty to stay on

the top of companys situation, deciding

whether things are going well internally, and

monitoring outside developments closely.

8/4/2019 SPDM1



SPDM1

Documents

Transcript of SPDM1