Module 1: Strategic Management the
Challenge of the New Century
What is Strategic management?
is about handling the
entirety of an enterprise.
is the overall long-term
It requires the degree to
goal of the management
which activities meet the
of the organization.
strategic needs of the
policy of the organization.
Strategic planning is organizing
Continuous improvement is organizational
scheduling tasks concerning roles
and resources within a given learning, which promotes and incrementally
timeline to achieve the increases the customer's efficiency and
organization's goals. satisfaction in day-to-day management,
according to the organization's strategic
Strategic change is a fundamental requirements.
transition phase that takes a
company to a new sustainable Competitive strategy is a method at the
competitive position, which is likely company level intended to retain a
to entail changes to the current competitive edge over rivals and future rivals.
strategy.
Who is responsible for handling the elements of strategic
management?
Top-level strategic goals and strategies to
achieve them need to be broken down into
departmental strategic goals and strategies
and translated into operational goals and
Senior managers Strategic
Management
daily management strategies. This order of
operation is often called a Hierarchy of
Strategy.
Managers
Daily Management
Supervisors &
Operators
Strategic Planning
Purpose
Situation Analysis External or Internal Environment, Strategic Objective
Strategy * Business Level *Corporate Level *Global
Implementation *Strategy Implementation *Strategic Control *Strategic
Leadership
Strategic planning
It is a structured,
systematic method that
POST : purpose,
offers a sequenced
objectives, strategy, and
structure or organizational
tactics.
template to achieve a
long-term goal.
Strategic Planning; The Baldrige Excellence Framework
defines good practice in terms of a set of management
principles:
1. All tasks must be planned properly.
2. Plans must be implemented so that people are working on these plans.
3. Work must monitor, and progress must review.
4. Necessary action must take to account for any deviation from the plan.
5. Organizations must have structures and management systems to ensure the above work in practice.
6. Everybody must be involved in these structures and systems.
Baldrige specifies that a strategic plan
should have:
1. A defined strategy,
2. Action plans derived from this strategy,
3. Awareness and recognition of the differences between short- and longer-term plans,
4. An approach for developing strategy based on an organization's external environment and internal strategic resources,
5. An approach for implementing action plans that consider an organization's key processes and performance measures, and
6. An approach for monitoring and evaluating organizational performance concerning the strategic plan.
Strategic • A structural transition
aimed at bringing an
change organization to a new
successful role.
• Works by concentrating time
and money on few critical
success drivers.
According • Strategy is a provisional
to Jack course of action often
revisited and redefined by
Welch the leadership according
to changing market.
(2005)
Continuous improvement
The continuous Stick within its
change is gradual core values of its
and is focused on own business
progress. model.
Competitive strategy
• The competitive strategy gives a
company an edge in achieving above-
average profits in its industry by
generating unique value relative to its
rivals.
• Competitive strategy needs a long-term
plan that is sustainable.
What is strategy?
STRATEGY PRINCIPLE IS FUNDAMENTAL TO EXTERNAL MARKET AND INTERNAL
STRATEGIC MANAGEMENT, BUT IT IS JUST STRATEGIC RESOURCES ARE THE TWO
PART OF STRATEGIC MANAGEMENT LIKE PERSPECTIVES CONSIDERED WHEN
STRATEGIC PLANNING. THINKING ABOUT STRATEGY.
Essential summary
Purpose – the reason for the organization and its overall goals.
Vision statement – organization’s statement of its desired future state.
Mission statement – organization’s statement of its overriding purpose, such as
the value it creates for its stakeholders and other responsibilities.
Values – are the expected norms and behaviors.
Vision Statement
IT IS A DESIRE FUTURE STATE OR ALSO, IT IS AN ASPIRATIONAL
IDEA FOR AN ORGANIZATION. STATEMENT MADE BY AN
ORGANIZATION THAT ARTICULATES
WHAT THEY WOULD LIKE TO ACHIEVE
IN THEIR FUTURE.
Mission
Statement It simply explains that why is
an organization exists. eg. “To
gain profit”
Also, It is states what is the In addition, The products that they
organization overall goal is, provide or services, the primaary
customers or market and its
identifying the goal of its geographical region of operation are
operations. also part of the Mission statement.
It is the expected collective norms and
behavioral standards for managers and the
organizations workers.
Values Also, it is the list of the core principle that
guide and direct the organization and its
Statement culture.
In addition, It guides the decision making
and establishes a standard against which
actions can be assessed.
THANK YOU!
