STRATEGY AND
STRATEGIC Marc Lewis A. Brotonel
Instructor, Tanauan Institute
MANAGEMENT
STRATEGIC MANAGEMENT
Strategic Management is a field of study that
involves the process through which firms define
their missions, visions, goals, and objectives, as
well as craft and execute strategies at various levels
of the firms’ hierarchies to create and sustain a
competitive advantage.
STRATEGY
Strategy is a high level plan to achieve
one or more goals under conditions of
uncertainty.
STRATEGY
Strategy is the determination of the
basic long-term goals of an enterprise,
and the adoption of courses of action
and the allocation of resources necessary
for carrying out these goals;
- Chandler(1962)
STRATEGY
Strategy is a mediating force between
the organization and its environment:
consistent patterns in streams of
organizational decisions to deal with the
environment.
- Mintzberg (1979)
STRATEGY
Strategy is more then just fit and
allocation of resources. It is stretch
and leveraging of resources.
- Prahlad (1993)
STRATEGY
Strategy is about being different. It
means deliberately choosing a
different set of activities to deliver a
unique mix of value.
- Porter (1996)
UNIVERSAL STRATEGY
Universal Strategy refers to a complex
web of thoughts, ideas, insights,
experiences, goals, expertise, memories,
perceptions, and expectations that
provides general guidance for specific
actions in pursuit of particular ends.
CORPORATE STRATEGY
This describes a company’s overall
direction towards growth by managing
business and product lines? These
include stability, growth and
retrenchment.
BUSINESS STRATEGY
This usually occurs at business unit or product
level emphasizing the improvement of
competitive position of a firm’s products or
services in an industry or market segment
served by that business unit. Business strategy
falls in the in the realm of corporate strategy.
FUNCTIONAL STRATEGY
It is the approach taken by a functional area to
achieve corporate and business unit objectives
and strategies by maximizing resource
productivity. It is concerned with developing
and nurturing a distinctive competence to
provide the firm with a competitive advantage.
OPERATING STRATEGY
These are concerned with how the component
parts of an organization deliver effectively the
corporate, business and functional -level
strategies in terms of resources, processes and
people. They are at departmental level and set
periodic short-term targets for
accomplishment.
STRATEGIC MANAGEMENT
Strategic Management is all about identification
and description of the strategies that managers can
carry so as to achieve better performance and a
competitive advantage for their organization. An
organization is said to have competitive advantage
if its profitability is higher than the average
profitability for all companies in its industry.
STRATEGIC MANAGEMENT
Strategic management can also be defined as a
bundle of decisions and acts which a manager
undertakes and which decides the result of the
firm’s performance. The manager must have a
thorough knowledge and analysis of the general and
competitive organizational environment so as to
take right decisions.
OBJECTIVES OF STRATEGIC
MANAGEMENT
In strategic management, there are strategic
objectives and financial objectives.
Additionally, all objectives are either short-run
or long-run types. When planning a firm's
strategy it is important to have objectives in
mind and to understand the differences
between the types of objectives.
STRATEGIC OBJECTIVES
Strategic objectives deal with the firm's position
in the model. You might do this, for example,
by positioning the firm relative to the external
forces – bargaining power of customers,
bargaining power of suppliers, threat of new
entrants, threat of substitutes, and competition
within the industry – that can impact a business.
FINANCIAL OBJECTIVES
Managers use financial objectives to measure
strategic performance. For example, if the
firm's strategic objective is to increase
efficiency, the financial objective could be to
increase return on assets or return on capital.
Financial objectives, derived from
management accounting, are more concrete.
SHORT-RUN OBJECTIVES
Financial and strategic objectives can either
be short-run or long-run objectives. Short-run
objectives deal with the immediate future.
They typically focus on tangible goals that
management can realize in a short time. An
example of a short-run objective might be to
increase monthly sales.
LONG-RUN OBJECTIVES
Long-run objectives target the firm's long-term
position. While short-run objectives focus on a
firm's annual or monthly performance, long-run
objectives concern themselves with the firm's
development over several years. Examples of
long-term objectives might be to become the
market leader or to attain sustainable growth.
THANK
YOU.
