This slide gives an introduction of Strategic Management with its various functions, levels, and benefits. It shows how Strategy have this much importance.
2. “
“Victorious warriors win first and then
go to war, while defeated warriors go
to war first and then seek to win.”
― Sun Tzu
3. Strategic Management
It refers to the set of managerial
decisions and actions that determines
the long-run performance of a
corporation, It includes:
◦ environmental scanning (internal &
external)
◦ strategy formulation
◦ strategy implementation
◦ evaluation and control
5. Levels of Strategy - Corporate-level Strategy
◦ At this level, strategic decisions relate to
organization-wide policies and are taken
care by top-level management (BOD) with
a vision of determining ‘Where the company
wants to be?’
◦ It has two main aspects- Formulation of
Strategy (strategic planning) and Strategy
Implementation
◦ Major financial policy decisions involving
acquisition, diversification and structural
redesigning belong to this level.
6. Levels of Strategy - Business-level Strategy
◦ Business-level strategy is more likely related
to a unit within the whole. It is concerned with
competition in a market.
◦ The concerns are about what products or
services should be developed and offered to
which markets in order to meet customer
needs and organizational objectives.
◦ Decisions at this level include policies
involving new product development,
marketing mix, research & development,
personnel, etc.
7. Levels of Strategy - Functional level strategy
◦ Functional strategy involves decision-
making with respect to specific functional
areas- production, marketing, personnel,
finance etc.
◦ While corporate and business level
strategies are concerned with “Doing the
right things”, functional strategies stress on
“Doing things right”.
◦ Thus, functional level strategic management
is the management of relatively narrow
areas of activity, which are of vital, pervasive
or continuing importance to the total
organization.
8. Importance of Strategic Management
◦ It results in higher organizational
performance.
◦ It requires that managers examine
and adapt to business environment
changes.
◦ It coordinates diverse organizational
units, helping them focus on
organizational goals.
◦ It is very much involved in the
managerial decision-making process.
9. Importance of Strategic Management
◦ Strategic management takes into account the future
and anticipates for it.
◦ A strategy is made on rational and logical manner,
thus its efficiency and its success are ensured.
◦ Strategic management reduces frustration because it
has been planned in such a way that it follows a
procedure.
◦ It brings growth in the organization because it seeks
opportunities.
◦ With strategic management, organizations can avoid
misguidedness and they can work directionally.
◦ Strategic management also adds to the reputation of
the organization because of consistency that results
from organization’s success.
10. Importance of Strategic Management
◦ Often companies draw to a close because of lack of
proper strategy to run it. With strategic management
companies can foresee the events in future and that’s
why they can remain stable in the market.
◦ Strategic management looks at the threats present in
the external environment and thus companies can
either work to get rid of them or else neutralizes the
threats in such a way that they become an
opportunity for their success.
◦ Strategic management focuses on proactive
approach which enables organization to grasp every
opportunity that is available in the market.
11. Benefits of Strategic Management
▫ Clearer sense of strategic vision
▫ Sharper focus on what is strategically important
▫ Improved understanding of rapidly changing
environment
12. “
“If you can’t describe your strategy in
twenty minutes, simply and in plain
language, you haven’t got a plan. ‘But,’
people may say, ‘I’ve got a complex
strategy. It can’t be reduced to a page.’
That’s nonsense. That’s not a complex
strategy. It’s a complex thought about
the strategy.”
― Larry Bossidy,
