Strategic management

Definition Is the analyzing and evaluating information from external and internal environment to identify strategic factors that create and sustain competitive advantage.

Purpose of S M The purpose is to achieve competitive advantages (offering consumer greater value, or benefits either by means of lower prices).

S M elements: 2. Strategic formation 3. Strategic implementation 1.Environmental scanning (both external & internal) 2. Strategic formation 3. Strategic implementation 4. Evaluation and control

Benefits Clearer sense of strategic vision for the firm. Great focus on what is strategically important Improved understanding of a rapidly changing environment.

Mission follows the Vision Vision: is the image of what a company wants to be in future? Mission: is the purpose for the organizational existence, it tells us what the firm is proving to society? Mission follows the Vision

Objectives (goals) End results of planned activity Should begin with word to

Environmental scanning Is the analyzing and evaluating of information from external and internal environments to identify strategic factors that will determine the future of firm. SWOT Analysis External Environment: Economic forces(money, information) Technological forces(new product) Political-legal forces(Lows, regulation) Sociocultural forces (rate of population, Birth rate)