this is business management you will able to draw the strategy and develop it

1. Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Strategic Business
Management

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What is the meaning of Strategic Business
Management?
The activities associated with running a company, such
as controlling, leading, monitoring, organizing, and
planning

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Planning LeadingOrganizing Controlling
Management
Functions
Management Functions

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A process that includes
defining goals, establishing
strategy & developing plans
to coordinate activities
Planning
Planning

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Determining what tasks are
to be done, who is to do
them, how the tasks are to
be grouped, who reports to
whom & where decisions
are to be made
Organizing
Organizing

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A function that includes
motivating employees,
directing others, selecting the
most effective communication
channels, and resolving
conflicts
Leading
Leading

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Monitoring activities to
ensure they are being
accomplished as planned &
correcting any significant
deviations
Controlling
Controlling

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Efficient versus Effective Management
Traditional Management
Decision making, planning, & controlling
Communication
Exchanging routine information & processing paperwork
Human Recourses Management
Motivating, disciplining, managing conflict, Staffing, & training
Networking
Socializing, politicking, & interacting with others

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Future
Short /
Long Term
planning
Strategy

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10
Strategy & Objectives
S
M
A
R
T
Specific
Measurable
Achievable
Realistic
Time bounded

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Strategic Challenges

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Business Mission and Its Vision
An aspirational description of what an organization would
like to achieve or accomplish in the mid-term or long-term
future
A written declaration of an organization's core purpose and
focus that normally remains unchanged over time.
Vision
Mission
A mission is different from a vision in that the former is the cause and the latter
is the effect; a mission is something to be accomplished whereas a vision is
something to be pursued for that accomplishment

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A SWOT Chart
SWOT Analysis
The use of a SWOT chart to
compile and organize the
process of identifying company
Strengths,
Weaknesses,
Opportunities, and
Threats.
P.S lately they call it SLOT as L stands for
Limitations

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Organization’s Strategy

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Types of Strategic Planning

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Types of Strategic Planning
Diversification strategy
The firm will expand by adding new product lines.
Vertical integration strategy
means the firm expands by producing its own raw
materials, or selling its product direct.
Consolidation strategy
reduces the company’s size.
Geographic expansion strategy
takes the company abroad.

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Cost leadership:
A firm aims to become the low-cost leader .
Differentiation:
A firm seeks to be unique in its industry.
Focus:
A firm seeks to compete by providing a product or service customers
can get in no other way.
Functional strategies
Identify the basic courses of action that each department will pursue
in order to help the business attain its competitive goals.
Types of Strategic Planning

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Competitive Advantage
Any factors that allow an organization to
differentiate its product or service from those of its
competitors to increase market share
Competitive advantage
Ex. Mc Donald’s competitive advantage,
consist of two key elements: Production &
delivery speed; while Microsoft’s competitive
advantage is making user friendly software

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1
2
3
4
5
Strategic Business
Management
Business target market
Business mission statement
Business customer
Business strategy for competition
Business objectives and performance
6 Policies & procedures
9
7
8
Potential opportunities for increased sales & profits
Foresee future
Assessment of your competitors

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1. Business mission statement
without a guiding mission statement, a business is bound to fail.
2. Business target market
a business should have a written description of the firm’s target
market , knowing where the product or service is produced?
2. Business customer
you should answer the following questions:
- what customers characteristics are?
- what are they purchasing?
- what they buy from you?
Strategic Business Management

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4. Business strategy for competition
Do you have a master strategy designed to keep your firm ahead of
the competition?
Every firm should define its competitive advantage & then seek to
maintain it through planning.
5. Business objectives and performance
Do you have written objectives to guide your company’s performance
in critical areas?
Are they specific and measurable?
Do they include a time frame and an index for measuring progress?
6. policies & procedures
Have you created written policies to guide action and decision making
in the organization and to ensure consistency?
Do employees know what these policies are?
Are thy followed?
Strategic Business Management

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7. Potential opportunities for increased sales
Have you identified potential opportunities for increased sales and
profits for your firm?
New products, new markets, or new locations could generate
more business for the small firm if management has the capacity
to reach them ?
8. Foresee future
Do you attempt to foresee future conditions and changes that
have a significant impact on your business?
Do you predict future economic trends and their affection your
business?
Although no forecast is ever completely accurate, managers should
attempt to peer into the future to avoid being surprised by
unforeseen changes.
Strategic Business Management

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9. Assessment of your competitors
Do you make assessment of your competitors’ actions so that you
can plot a strategy to meet them?
How do customers perceive your firm in comparison to your
competitors?
Strategic Business Management

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Strategic Management Process
Strategic management tasks
 Step 1: Define the Business and Its Mission
 Step 2: Perform External and Internal Audits
 Step 3: Translate the Mission into Strategic Goals
 Step 4: Formulate a Strategy to Achieve the
Strategic Goals
 Step 5: Implement the Strategy
 Step 6: Evaluate Performance

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Step 1: get the big picture
Understand your business strategy
Highlight the key driving forces of your business?
e.g., technology, distribution, competition.
what are the fundamental people contribution to bottom business
performance?
Step 2: develop a mission statement
Develop the mission statement that relates to the people side of the
business.
Strategic Management Process

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Step 3: conduct a SWAT analysis of the organization
focus on the internal strengths and weaknesses of people
side of the business
Consider the current skill and capability issue
Highlight the opportunities & threats relating to the people
side of the business
Consider skill shortages
The impact of new technology on staffing levels
Strategic Management Process

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Step 4 : conduct a detailed HR analysis
 Concentrate on the organization’s COPS
(culture, organization, people, and HR systems)
 Consider where you are now & where do you want to be?
 What gaps exists between the reality of where you are now and
where you want to be?
Step5: determine critical people issues
 Go back to your business strategy and examine it against your
SOWT and COPS analysis.
 Identify where you should be focusing your efforts and
resources.
Strategic Management Process