MBA-502 Strategic Management Erlan Bakiev, Ph.D.

Chapter 2 The Strategic Management Process and its Components

Strategic Management Process It is the sum of activities directed for data collection, analysis, selection, implementation of the decisions for the organization’s sustainability and sustainable competitive advantage

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Stages of Strategic Management Process Selection of Strategies and Appointment Stage Strategic analysis stage: the analysis of external business environment (macro environment and industry) and internal analysis Strategic orientation stage: Mission, Vision and Goals Stage of strategy formulation: General and Sub Strategies; Corporate, Competitive and Functional strategies Strategic implementation stage: organizational structure, information systems, leadership style, corporate culture and management style Strategic control stage: the control of the performance as a result of the implementation of the strategy and compliance with the strategic objectives

Selection of Strategies and Appointment Stage The strategists, is the person who starts activities related with strategic management process and takes place at every phase in this process; an employee responsible for strategic activities Strategists are classified into two types : Strategists in the Managerial position Professional Expert Strategists

What type of strategist you can be to meet the needs of your company ? Cynthia Montgomery The head of strategy department at the Harvard Business School: Why did you call your book The Strategist and who is your intended audience for it? Can everyone become a strategist or is it only for a select few? Why? How can you be a strategist in a company if you’re a young worker? What are the challenges and opportunities? Can you give an example of a strategist at a major company and how they’ve made an impact?

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Strategists in the Managerial position I) Strategists in the Managerial position Business owners Members of the board of directors Business owners or appointed top level managers appointed by the board of directors President CEO (Chief Executive Officer) II) Mid-level Manager Strategists III) Low-level manager Strategists

Professional Expert Strategists A professional appointed out of the organization and specialized in strategic management. Specialized Strategists ; Having strategic awareness,, Having an ability to see the events from a wide angle, in a systematic approach, Ability to collect information on strategic management and analyze it, Besides analysis skill, having instict and foresight skills, Having creativity and teamwork personal traits, Good time managemend

Strategic Analysis Stage is a process related to analyzing the current state of main and industrial environmental components of a business and evaluating its internal components

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ENVIRONMENTAL ANALYSIS General / Remote Environmental Analysis Political, Legaş, Economic, Socio-cultural, Demografic, Teknological and International(global) factors Sectoral / Close Environmental Analysis Definition of main sector, Competitive analysis ve Main opponent analysis Internal Analysis of the Business External Environment analysis determine opportunities and threts; Internal analysis determine strength and weaknesses

Strategic Orientation Stage Definition of the job the business diong (determining the type of product or service, which markets it will be realized and the planned technology to produce it) Mission (The mission of the company is the cause of its existence) Vision (The vision of the company is the expression of the state they wish to be in the future) Goal and Objectives (The goal is desired results occured as a result of the work done by the business; objective is a concrete form of goal specified in a certain time of period)

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Stage of Strategy Formulation Basic and Sub Strategies Basic Strategies; Growing Strategies Donwsizing Strategies Static Strategies Mixed Strategies Sub Strategies; Related/ Unrelated Strategies Independent (Internal) / Dependent (External) Strategies Horizontal / Vertical Strategies Active / Passive Strategies

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Stage of Strategy Formulation Strategies Upon the Managerial Levels Top Level (Organizational) Strategies; Organizationa/Diversification Strategies and Withdrowing Strategies Top and Mid Level Strategies; Managemtn/competitive Strategies of the business; Cost Leadership; Differentiation and Focus Strategies Low Level Strategies; Functional (Segment) Strategies

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In the Strategy Selection Process the business does work on three themes ; Identifying alternative strategies to meet environmental opportunities and threts that can be performed by the organization’s possibilities, Determination of the criteria used in selecting alternative strategies, The selection of the most appropriate strategic alternative

Strategic Implementation Stage Establishment of appropriate organizational structure for strategies and mobilization of all business systems and resources Selection, hiring and training of qualified human resources which is going to be employed in the organizational structure implementation of the strategies Preparation of appropriate organizational atmosphere and lider/lidership that are qualified to develop management style for implementing strategic changes and applications

Strategic Control Stage Starting from the stage of strategic awareness; analysis, control of each selection and implementation stages and majing corrections if needed.

The Approaches on Starting Points in Strategic Management Work Open Analysis Approach Open analysis, is used for the intended strategy. Intended strategies; they are preparing strategies for reaching the final results that are cdesired by businesses

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The Approaches on Starting Points in Strategic Management Work Opportunity Approch Opportunity approach, is offering to reach the goal by finding attractive markets and using organizational/competitive strategies to make profit over above avarage. Resource Approach The resource approach, on the other hand, is paying attention to the assets and capabilities occured after its internal analysisi

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