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Chapter 1

The document discusses the nature of strategic leadership and management, emphasizing the importance of formulating, implementing, and evaluating strategies to achieve organizational objectives. It outlines the strategic-management process, including stages of strategy formulation, implementation, and evaluation, and highlights the benefits of effective strategic management. Additionally, it compares business and military strategy, noting their differing assumptions regarding competition and conflict.

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21 views27 pages

Chapter 1

The document discusses the nature of strategic leadership and management, emphasizing the importance of formulating, implementing, and evaluating strategies to achieve organizational objectives. It outlines the strategic-management process, including stages of strategy formulation, implementation, and evaluation, and highlights the benefits of effective strategic management. Additionally, it compares business and military strategy, noting their differing assumptions regarding competition and conflict.

Uploaded by

damikiyas12
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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WELCOME

Strategic leadership
By

Chalchissa Amentie (PhD, Associate Prof.)

By: Dr. Chalchissa A., [email protected]


CHAPTER ONE
.
The Nature
of
Strategic leadership

By: Dr. Chalchissa A., [email protected]


Chapter Objectives

1. Describe the strategic-management process.


2. Explain the need for integrating analysis and intuition in
strategic management.

3. Define and give examples of key terms in strategic


management.

4. Discuss the nature of strategy formulation,

implementation, and evaluation activities.

By: Dr. Chalchissa A., [email protected]


Chapter Objectives (cont.)

5. Describe the benefits of good strategic management.

6. Discuss how a firm may achieve sustained


competitive advantage.

By: Dr. Chalchissa A., [email protected]


Introduction

 Strategy Vs Strategic Management


 strategic leadership ?

By: Dr. Chalchissa A., [email protected]


Introduction

Strategy
 A set of actions that managers take to increase their
company’s performance relative to rivals.

 If a company strategy does result in superior


performance, it is said to have a competitive advantage.

By: Dr. Chalchissa A., [email protected]


“Notable Quotes”

 "Without a strategy, an organization is like a ship without a rudder,


going around in circles. It’s like a tramp; it has no place to go."

—Joel Ross and Michael Kami

By: Dr. Chalchissa A., [email protected]


Strategic Leadership
• The process of providing the direction and inspiration necessary to

create and implement a vision, mission, and strategies to achieve and

sustain organizational objectives

• The purpose of strategic leadership is to effectively implement and

guide the process of strategic management

Dr. Chalchissa A ( Associate preofessor in management) 11-8


Defining Strategic Management

 Strategic management
 the art and science of formulating, implementing,
and evaluating cross-functional decisions that enable
an organization to achieve its objectives
Why strategic management is both art and science ?
Strategic management focuses on integrating management:,
 marketing, finance/accounting, production/operations,
 research and development, and
 computer information systems to achieve organizational success.

By: Dr. Chalchissa A., [email protected]


Defining Strategic Management

 Strategic management is used synonymously with


the term strategic planning.

 Sometimes the term strategic management is used to


refer to strategy formulation, implementation, and
evaluation, with strategic planning referring only to
strategy formulation.

By: Dr. Chalchissa A., [email protected]


Defining Strategic Management

 A strategic plan is a company’s game plan.

A strategic plan results from tough managerial


choices among numerous good alternatives, and it
signals commitment to specific markets, policies,
procedures, and operations.

By: Dr. Chalchissa A., [email protected]


Stages of Strategic Management

Strategy Strategy Strategy


formulation implementation evaluation

By: Dr. Chalchissa A., [email protected]


Stages of Strategic Management…

 Strategy formulation
 includes developing a vision and mission, identifying an
organization’s external opportunities and threats,
determining internal strengths and weaknesses,
establishing long-term objectives, generating alternative
strategies, and choosing particular strategies to pursue

By: Dr. Chalchissa A., [email protected]


Stages of Strategic Management…

 Strategy implementation
 requires a firm to establish annual objectives,
devise policies, motivate employees, and allocate
resources so that formulated strategies can be
executed

 often called the action stage

By: Dr. Chalchissa A., [email protected]


Stages of Strategic Management…

 Strategy evaluation
 reviewing external and internal factors that are the
bases for current strategies, measuring
performance, and taking corrective actions

By: Dr. Chalchissa A., [email protected]


The Strategic-Management Model

The Strategic-Management Model ?

By: Dr. Chalchissa A., [email protected]


The Strategic-Management Model

 It represent a clear and practical approach for formulating,


implementing, and evaluating strategies
These are three important questions to answer in developing a strategic
plan:

Where are we now?


Where do we want to go?
How are we going to get there?

By: Dr. Chalchissa A., [email protected]


Feedback

Perform
External
Audit

Develop Establish Generate Establish Allocate Measure &


Mission Long-term Evaluate, Policies & Resources evaluate
Statement Objectives & Select Annual Performance
Strategies Objectives

Perform
Internal
Audit

Strategy Formulation Strategy Implementation Strategy


Evaluation

A comprehensive Strategic Management Model

Eye Clinic in Florence, South Carolina, is “


Our vision is to take care of your vision."
Benefits of Strategic Management

?
Non-financial

Financial Benefit

By: Dr. Chalchissa A., [email protected]


Non financial Benefits

Following are the major benefits of Strategic management:

 Proactive in shaping firm’s future

 Initiate and influence actions


 Formulate better strategies (Systematic, logical, rational
approach)

By: Dr. Chalchissa A., [email protected]


Non financial Benefits..

 Communication is a key to successful strategic


management

 Through dialogue and participation, managers and


employees become committed to supporting the
organization

By: Dr. Chalchissa A., [email protected]


Non financial Benefits ---------

By: Dr. Chalchissa A., [email protected]


Nonfinancial Benefits…

 Increased employee productivity


 Improved understanding of competitors’ strategies

 Greater awareness of external threats


 Understanding of performance reward relationships

 Better problem-avoidance
 Lesser resistance to change

By: Dr. Chalchissa A., [email protected]


Financial Benefits

Financial Benefits:

 Improved productivity
 Improved sales
 Improved profitability

By: Dr. Chalchissa A., [email protected]


Guidelines for Effective Strategic Management

By: Dr. Chalchissa A., [email protected]


Comparing Business and Military Strategy

 A fundamental difference between military and business


strategy is that business strategy is formulated, implemented,
and evaluated with an assumption of competition, whereas
military strategy is based on an assumption of conflict

 Both business and military organizations must adapt to


change and constantly improve to be successful

By: Dr. Chalchissa A., [email protected]


END

CHAPTER ONE

Thanks Very much for your


attention !
By: Dr. Chalchissa A., [email protected]

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