Strategic quality management is a process-oriented approach to quality that focuses on developing and implementing long-term strategies for improving the quality of products and services. It involves the use of various tools and techniques to measure, analyze, and improve quality at every stage of the product or service life cycle. At its core, strategic quality management is driven by a commitment to continuous improvement. This involves setting clear quality objectives and goals, and establishing systems and processes for measuring progress towards these goals. By regularly reviewing and analyzing quality data, organizations can identify areas where improvements are needed and develop effective strategies for making these improvements. One key aspect of strategic quality management is the use of quality standards and certifications, such as ISO 9001, to ensure consistency and reliability in the delivery of products and services. Organizations that achieve certification demonstrate a commitment to quality and a willingness to adhere to rigorous quality standards. Another important component of strategic quality management is the use of customer feedback and input to guide quality improvement efforts. By soliciting customer feedback and using this feedback to drive improvements, organizations can ensure that their products and services meet the needs and expectations of their customers. Overall, strategic quality management is a comprehensive approach to quality that involves the entire organization. By establishing a culture of continuous improvement, setting clear quality objectives, and using data-driven decision making, organizations can improve the quality of their products and services, enhance customer satisfaction, and drive long-term business success.

2. INTRODUCTION
• A utility decided to improve customer service quality in
an area that had been significantly under-performing.
• The solution it used was to allow any of its service
centers to handle service calls from any of the areas it
served.
• The public relations campaign turned into a backlash of
contempt, and foes of deregulation got some
ammunition that they could and did use in the future.

3. INTRODUCTION
• A medium sized engineering firm found that its designs
which had been its competitive advantage, no longer
fetched premium in the market.
• The teams were not given any direct authority to act.
• The significant number of failures not only represents a
waste of resources but also leads to a lack of credibility
in management methods.

4. INTRODUCTION
• The fundamental premise of this argument is that these
quality improvement and cost management methods
divide the organization into two groups:
»change agents; and
»the vested interests who oppose change

5. Learning Objectives
• Understand the benefits of strategic management
• Explain how globalization and environmental sustainability
influence strategic management
• Understand the basic model of strategic management and
its components

6. Learning Objectives
• Identify some common triggering events that act as stimuli
for strategic change
• Understand strategic decision-making modes
• Use the strategic audit as a method of analyzing
corporate functions and activities

7. The Study of Strategic Management
• Strategic Management
a set of managerial decisions and actions that determines the long-run
performance of a corporation
• Strategic Management includes:
Internal and external environment scanning
Strategy formulation
Strategy implementation
Evaluation and control

8. Phases of Strategic Management
Phase 1:
Basic financial planning
Phase 2:
Forecast-based planning
Phase 3:
Externally oriented strategic planning
Phase 4:
Strategic management

9. Benefits of Strategic Management
• The attainment of an appropriate match, or “fit,” between
an organization’s environment and its strategy, structure
and processes has positive effects on the organization’s
performance.
• Strategic planning becomes increasingly important as the
environment becomes more unstable.

10. Benefits of Strategic Management
• Sharper focus on what is strategically important
• Improved understanding of a rapidly changing
environment
• Clearer sense of strategic vision for the firm

11. Impact of Globalization
• Globalization
–the integrated internationalization of markets and
corporations
–has changed the way modern corporations do business

12. Impact of Innovation
• Innovation
–describes new products, services, methods and
organizational approaches that allow the business to
achieve extraordinary returns
• Innovation is the implementation of potential innovations
that truly drives businesses to be remarkable.

13. Impact of Sustainability
• Sustainability
–refers to the use of business practices to manage the
triple bottom line

14. Impact of Sustainability
The triple bottom line involves:
1. the management of traditional profit/loss;
2. the management of the company’s social responsibility;
and
3. the management of its environmental responsibility.

15. Theories of Organizational Adaptation
• Population ecology
–once an organization is successfully established in a
particular environmental niche, it is unable to adapt to
changing conditions
• Institution theory
–organizations can and do adapt to changing conditions
by imitating other successful organizations

16. Theories of Organizational Adaptation
• Strategic choice perspective
–not only do organizations adapt to a changing
environment, but they also have the opportunity and
power to reshape their environment

17. Creating a Learning Organization
• Strategic flexibility
–the ability to shift from one dominant strategy to another
and requires:
• Long-term commitment to the development and
nurturing of critical resources
• Learning organization

18. Basic Elements of the Strategic
Management Process

19. Strategic Management Model

20. Basic Model of Strategic Management
• Environmental scanning
–the monitoring, evaluating and disseminating of
information from the external and internal environments
to key people within the organization
–SWOT analysis

21. Basic Model of Strategic Management
• Strategy formulation
–process of investigation, analysis and decision making
that provides the company with the criteria for attaining
a competitive advantage
–includes defining the competitive advantages of the
business (Strategy), crafting the corporate mission,
specifying achievable objectives and setting policy
guidelines.

22. Initiation of Strategy: Triggering Events
• Triggering event
–something that acts as a stimulus for a change in
strategy and can include:
• New CEO
• External intervention
• Threat of change of ownership
• Performance gap

23. Strategic Decision Making
• Strategic decisions
–deal with the long-term future of an entire organization
and have three characteristics:
• Rare
• Consequential
• Directive