Chapter 1 Strategic Management

Strategic Management
Anindya Prasisca RZP, M.Sc

Table of contents
01
Introduction 02
Strategic
Management
Process
03
Characteristic of
Strategic Management
Decisions
01
INTRODUCTION
What is
strategy ?
Introduction
• A strategy is a set of related actions that
managers take to increase their
company performance
• Management is the process of designing

and maintaining an environment in
which individuals, working together in
groups, efficiently accomplish selected
aims.
STRATEGIC
A process of analyzing, formulating,

implementing and evaluating some set of
Strategic actions taken or to be taken for the
Management achievement of predetermined organizational
goals and objectives
A process which describes how a firm will

Strategic adapt to take advantages of opportunities in
its constantly changing environment, in order
Planning to maintain a strategic fit between the firm’s
goals and capabilities and these market
opportunities
BASIC FRAMEWORK
The firm
External
Goals & values Environment
Resources & Strategy
Competitors
Capabilities
Customers
Structures &
Suppliers
System
Levels of Strategic Management
Corporate Level Manager
Business Level Manager
Functional Level
Manager
Levels of Strategic Management
Corporate Oversee development of

strategies for whole
Level organization
Responsible for business
Business unit that provides
product/service to particular
Level market
Functional Supervise particular

function/operation
Level
02
STRATEGIC
MANAGEMENT
PROCESS
Strategic Management Process
Analyize the Analyize the organization’s

Select the organization’s external internal operating
corporate mission competitive environment to identify
and major environment to orgaanization’s strengths
corporate goals identify organization’s and weakness
opportunities and
threats
Strategic Management Process
Select strategies that build on

Implement the
the organization’s strengths
strategy
and correct its weaknesses in
order to take advantage of
ecternal opportunities and
counter external threats
Vision, Mission, Goals
Vision Mission Goals

An organization’s mission
The highest aspirations is an overall goal of the A desired future state or
and ideals of a person or organization that provides objective that a
organization, what a firm a sense of direction and company attempts to
wants to be guide to decision making realize.
for all levels of
management
Mission Statement
Mission statement should include the following components:

● Target customers and markets ● Organizational self concept
● Principal products and services ● Desired public image
● Geographic domain ● Values and guiding standard
● Core technologies ● Major goals and objectives
● Concern for survival, growth
and maturity
Characteristic of well constructed goals is :
S.M.A.R.T
Is there anyone
knows what is
S.M.A.R.T ?
S.M.A.R.T
Specific Measurable
a specific and well- Timeless a goal has to have
defined goal is focused a ruler or
Goals need to
on a task that moves scoreboard
come with
the company forward attached to it.
deadlines, due
dates
Attainable Realistic
Don't take the challenging Your goals should
characteristic (above) too be realistic and
far. Make sure you can suited to your
actually achieve what you're present capabilities.
setting out to do..
The purpose of the external analysis is to
identify strategic opportunities and threats
within the organization’s operating
environment that will affect how it pursue
its mission
EXTERNAL ANALYSIS
INTERNAL ANALYSIS
The goal of a SWOT analysis :
 Create, affirm, or fine-tune a company-specific

business model
 Design a model that will best align, fit or match
a company’s resources and capabilities to the
demands of the environment in which it
operates
SWOT STRATEGIES
Functional – level Business – level
strategies strategies
Directed at improving the  The way a company position
effectiveness of operations itself in the marketplace to
gain a competitive advatage
within a company
 The different position
 Manufacturing, marketing, strategies that can be used in
materials management, different industry settings
product development, and
customer service
SWOT STRATEGIES
Business – level
Global strategies
strategies
Address how to expand Address what business
operations outside the should the company be in
home country to maximize profitability
 How to grow and posper in a  How should a company enter
world where competitive and increase its presence to
advantage is determined at a gain a competitive edge
global level
Strategy Implementation
Strategy Putting quality Changing the

implementation
involves taking
improvement way a product is
programs into place designed
action at the
functional,
business, and Positioning the Offering different
corporate levels to
execute a strategic
product versions of thhe
plan differently in the product to different
marketplace consumers
03
CHARACTERISTICS OF
STRATEGIC MANAGEMENT
DECISIONS
● Often carry greater risk, cost, and profit
potential
Corporate Level ● Greater need for flexibility
● Longer time horizons
Managers ● Choice of businesses, dividend policies,
sources of long-term financing, and
priorities for growth
● Help bridge decisions at the corporate and
functional levels
● Less costly, risky, and potentially profitable
Business Level than corporate-level decisions
● More costly, risky, and potentially
Managers profitable than functional-level decisions
● Include decisions on plant location,
marketing segmentation, and distribution
● Implement the overall strategy formulated
at the corporate and business levels
Functional Level ●
●
Involve action-oriented operational issues
Relatively short range and low risk
Managers ● Modest costs: depend upon available
resources
● Relatively concrete and quantifiable
THANK
YOU

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Strategic Management

Anindya Prasisca RZP, M.Sc

• Management is the process of designing

A process of analyzing, formulating,

A process which describes how a firm will

Corporate Level Manager

Business Level Manager

Corporate Oversee development of

Functional Supervise particular

Analyize the Analyize the organization’s

Select strategies that build on

Vision Mission Goals

Mission statement should include the following components:

The goal of a SWOT analysis :

 Create, affirm, or fine-tune a company-specific

Strategy Putting quality Changing the

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