1. Nature of Strategic Management

2. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Strategy
Means by which long-term objectives are achieved
Strategic Management-Concepts & Cases,Fred R David,12th edtn

3. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives
Purpose-To exploit and create new and different opportunities for tomorrow
In essence, the strategic plan is a company’s game plan
Strategic Management-Concepts & Cases,Fred R David,12th edtn

4. Stages of strategic management Process
Strategy formulation
Strategy implementation
Strategy evaluation
Strategic Management-Concepts & Cases,Fred R David,12th edtn

5. Strategy Formulation Vision & Mission External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
Strategic Management-Concepts & Cases,Fred R David,12th edtn

6. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Issues in Strategy Formulation
Businesses to enter
Businesses to abandon
Allocation of resources
Expansion or diversification
International markets
Mergers or joint ventures
Avoidance of hostile takeover
Strategic Management-Concepts & Cases,Fred R David,12th edtn

7. Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Strategic Management-Concepts & Cases,Fred R David,12th edtn

8. Strategy Implementation Steps
Developing a strategy-supportive culture
Creating an effective organizational structure
Redirecting marketing efforts
Preparing budgets
Developing and utilizing information systems
Linking employee compensation to organizational performance
Strategic Management-Concepts & Cases,Fred R David,12th edtn

9. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Issues in Strategy Implementation
Action Stage of Strategic Management
Mobilization of employees & managers
Most difficult stage
Interpersonal skills critical
Strategic Management-Concepts & Cases,Fred R David,12th edtn

10. Performance Measurement
Strategy Evaluation
Internal Review
External Review
Performance Measurement
Corrective Action
Strategic Management-Concepts & Cases,Fred R David,12th edtn

11. Key Terms in Strategic Management
Competitive advantage
Strategists
Vision and mission statements
External opportunities and threats
Internal strengths and weaknesses
Long-term objectives
Strategies
Strategic Management-Concepts & Cases,Fred R David,12th edtn

12. Competitive Advantage
Strategic Management is Gaining and Maintaining Competitive Advantage
Anything that a firm does especially well compared to rival firms
Strategic Management-Concepts & Cases,Fred R David,12th edtn

13. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Achieving Sustained Competitive Advantage
1. Continually adapting to changes in external trends and events and internal capabilities, competencies, and resources
2. Effectively formulating, implementing, and evaluating strategies that capitalize on those factors
Strategic Management-Concepts & Cases,Fred R David,12th edtn

14. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Strategists
Gather Information
Analyze Information
Organize Information
Strategic Management-Concepts & Cases,Fred R David,12th edtn

15. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Vision and Mission Statements
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Strategic Management-Concepts & Cases,Fred R David,12th edtn

16. Strategic Management-Concepts & Cases,Fred R David,12th edtn
External Opportunities and Threats
Economic
Social
Cultural
Demographic/Environmental
Political, Legal, Governmental
Technological
Competitors
….That could significantly benefit or harm an organization in the future
Strategic Management-Concepts & Cases,Fred R David,12th edtn

17. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Basic Tenet of Strategic Management:-
Take advantage of External Opportunities
Avoid/minimize impact of External Threats
Strategic Management-Concepts & Cases,Fred R David,12th edtn

18. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Internal Strengths and Weaknesses
Controllable activities performed especially well or poorly
Strength and weakness are determined relative to competitors
Strategic Management-Concepts & Cases,Fred R David,12th edtn

19. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Internal Strengths and Weaknesses
Typically located in functional areas of the firm
Management
Marketing
Finance/Accounting
Production/Operations
Research & Development
Management Information Systems
Strategic Management-Concepts & Cases,Fred R David,12th edtn

20. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Long-Term Objectives
Specific results that an organization seeks to achieve in pursuing its basic mission
Long-term means more than one year
Strategic Management-Concepts & Cases,Fred R David,12th edtn

21. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Strategies
Means by which long-term objectives are achieved
Strategic Management-Concepts & Cases,Fred R David,12th edtn

22. Strategic Management-Concepts & Cases,Fred R David,12th edtn
Strategies
Examples
Geographic expansion
Diversification
Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
Strategic Management-Concepts & Cases,Fred R David,12th edtn