GROUP 1 TIMOTHY LOVELAND BRENT GAFFORD JOHN MENTH ZACHARY MAYOR Introducing the Concepts

Why is Strategic Management important? What is Strategic Management? Who’s involved with Strategic Management? Three important factors impacting Strategic Managment

Introducing the Concepts Why is Strategic Management important? There are 4 main reasons

Introducing the Concepts 1 st reason Everyone in an organization plays a role It is important so you can do your job well

Introducing the Concepts 2nd reason You can understand why firms succeed or fail. Companies that use Strategic Management perform better Profits are related to higher levels of performance

Introducing the Concepts 3rd reason Organizations face changing situations both internally and externally  Deliberate structure of the strategic management process guides organizational decision makers The way strategy is developed can make a difference in performance  Better decisions were made  Outperformed other organizations

Introducing the Concepts 4 th reason An Organiztion’s various divisions, departments, and work activites need to be coordinated and focused on achieving the organizational goals. Such as…  Operations  Marketing  Accounting

Introducing the Concepts What is Strategic Management? Definition- a process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing those strategies needed.  Situational Analysis  Strategy Formulation  Strategy Implementation  Strategy Evaluation

Introducing the Concepts Strategic Management has 4 characteristics 1) Interdisciplinary- it doesn’t focus on any on specific organizational area; instead encompasses all functional areas. 2) External Focus- involves the interactions of the organization with it’s external environment 3) Internal Focus- It involves assessing the organization’s resources and capabilities. 4) Future Direction- Can mean weekly manufacturing decisions, yearly financial planning cycles, or long term shifts in the organization’s products and markets

Introducing the Concepts Who’s involved with Strategic Management?  People at all organizational levels play a role in developing, implementing, and changing strategy. - The difference is the scope of the individual’s strategic actions 3 Main Groups The Board of Directors- elected group that represent a company’s shareholders. -Represents the shareholders and protect their interests

Introducing the Concepts Top Managers- Chief Executive Officer, (COO),(CFO),(CIO) - They are responsible for every decision and action of every organizational employee. They are the strategic leaders. Strategic Leadership- The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.

Introducing the Concepts Three important factors impacting Strategic Management 1 st Factor The Global Economy & Globalization  Some fear that we should be careful of becoming too global and opening boarders  When one country falters, it can have a domino effect on other countries with which it does business.

Introducing the Concepts 3 main global organizations  World Trade Organization (WTO)  World Bank Group  International Monetary Fund (IMF) -As taught in International Marketing by Dr. Duhan

Introducing the Concepts 2 nd Factor Corporate Governance- It’s the way a corporation is governed or the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad participants in organizations.  The Role of Boards of Directors -Look out for the shareholders  Financial Reporting -Senior managers must now sign off on financial statements -Independent auditors can be very expensive -More flexible guidelines are needed to help companies and auditors interpret information that saves them time and money.

Introducing the Concepts 3 rd Factor E-Business World- Uses information and communication technologies to support all the activities of a business. It includes E-Commerce Retailing side of the business Companies do it for internet selling purposes.

Introducing the Concepts