Strategic
Management
Let Us Pray
•
Heavenly and Gracious Father, thank you for this
wonderful day. Thank you for the gift of life and spirit.
Thank you for all the blessings you have given us. Loving
Father, we ask for your mercy and implore that you protect
us from any harm. We beg you to eradicate the virus that’s
causing this pandemic. We also you to nurture our mind
and spirit with knowledge and wisdom. Teach us to be a
better individual. This we ask in your HOLY and
GRACIOUS NAME. AMEN
•
St. Marcellin
PRAY FOR US
Learning Objectives:
•
To be able define and elaborate strategic
management
•
To be able to determine the nature of
strategic management and the role it plays in
business organizations today
What is Management?
According to Harold Koontz…
Management is:
The
art of getting things done
through and with people in
formally organized groups.
It
is the art of creating an
environment in which people can
perform and individuals could
cooperate towards attaining of
group goals.
According to George R. Terry…
Management is:
A
distinct process, consisting of
planning, organizing, actuating and
controlling, performed to determine
and accomplish stated goals by the
use of human beings and other
resources.
What is Management?
•
•
•
Management involves coordinating and
overseeing the work activities of others so that
their activities are completed efficiently and
effectively.
It is a process of planning, decision making,
organizing , leading, motivation and controlling
human resources, financial, physical and
information resources of an organization to
reach its goals efficiently and effectively.
It is a process a systematic way of doing things.
What are the basic
functions of management?
Basic Functions of Management:
1.
Planning – consists of the activities involved in choosing
courses of action to achieve organizational objectives
2.
Organizing – grouping of jobs into a framework for
coordination and direction
3.
Staffing – it is planning, organizing, directing and controlling
of procurement, development, compensation, integration and
maintenance of people for the purpose of contributing to
individual, organizational and social goals
•
4.
Directing – includes motivating, commanding, leading and
activating people
Controlling – involves checking, verifying and comparing of
actual performance with the plans, identification of
deviations and correcting identified deviations
What is Strategy?
Strategy
•
It is a unified, comprehensive and integrated
plan that relates to the strategic advantages of
the firm to the challenges of the environment
According to Alfred D. Chandler …
• Strategy
is the
determination of the
basic long-term goals
and objectives of an
enterprise and the
adoption of the
courses of action and
allocation of resources
necessary for carrying
out these goals
According to Arthur Sharplin…
• Strategy
is a plan or
course of action which
is of vital pervasive,
continuing
importance to the
organization as a
whole
According to James Brain Quinn…
• Strategy
is a pattern of plan
that integrates an
organization’s major goals,
policies and action
sequences into a cohesive
whole
Dimensions of Strategy
1.
Contains three essential elements:
i.
ii.
iii.
Most important objectives to be achieved
Most significant policies guiding or limiting action
Major action sequences that are to accomplish the defined
goals within the limits set
2.
Develop few key concepts and thrusts which give them
cohesion, balance and focus
3.
Deals not just with the unpredictable but also with the
unknownable
4.
Complex business organizations have a number of
hierarchically related and mutually supporting strategies
Criteria for Effective Strategy
1.
Clear, decisive objectives
2.
Maintaining the initiative
3.
Concentration
4.
Flexibility
5.
Coordinated and Committed Leadership
6.
Surprise
7.
Security
Forms and Kinds of Strategies
Planned
Strategy
Entrepreneurial
Ideological
Umbrella
Process
Strategy
Strategy
Strategy
Strategy
Disconnected
Consensus
Imposed
Strategy
Strategy
Strategy
Why do we need
STRATEGY?
5 Good Reasons:
1.
To set direction and priorities
2.
To get everyone on the same page
3.
To simplify decision-making
4.
To drive alignment
5.
To communicate the message
Strategy is necessary because…
i.
To have rules to guide the search for new opportunities both inside and
outside the firm
ii.
To take high quality project decisions
iii.
To develop measures to judge whether a particular opportunity is a rate
one or whether much better ones are likely to develop in the future
iv.
To have assurance that the firm’s overall resource allocation pattern is
efficient
v.
To have and develop internal ability to anticipate change
vi.
To save time, money and executive talent
vii.
To identify, develop and exploit potential opportunities
viii.
To utilize the delay principle that is delay commitment until an
opportunity is on hand