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Lecture (1) - 20.bin PDF

The document provides an overview of strategic management. It defines strategy as the formulation of organizational objectives, scopes, and action plans for gaining advantage while considering competition and external forces. It discusses analyzing the present situation, visioning the future direction, and crafting an action plan to get there. Strategy is about how a firm can outcompete rivals and respond to economic conditions to improve financial performance and competitive position through a creative, distinctive strategy. Formulating strategic choices involves assessing internal/external factors to select long-term objectives and strategies to achieve the vision and mission.

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Hasnat nahid Himel
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55 views10 pages

Lecture (1) - 20.bin PDF

The document provides an overview of strategic management. It defines strategy as the formulation of organizational objectives, scopes, and action plans for gaining advantage while considering competition and external forces. It discusses analyzing the present situation, visioning the future direction, and crafting an action plan to get there. Strategy is about how a firm can outcompete rivals and respond to economic conditions to improve financial performance and competitive position through a creative, distinctive strategy. Formulating strategic choices involves assessing internal/external factors to select long-term objectives and strategies to achieve the vision and mission.

Uploaded by

Hasnat nahid Himel
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MBA Program

Overview of Strategic Management


Lecture 01
Strategy-­‐The  formulation  of  
organizational  objectives,  
scopes  and  action  plans  for  
gaining  advantage.    
 
Strategy-­‐  the  formulation  of  
organizational  missions,  
goals,  objectives  and  action  
plans  for  achievement  that  
explicitly  recognize  the  
competition  and  the  impact  
of  outside  environmental  
forces  
What  is  our  present  situation?  
•  Business  environment  and  
industry  conditions  
•  Firm’s  Cinancial  and  
competitive  capabilities  
Where  do  we  want  to  go  from  
here?  
•  Creating  a  vision  for  the  
Cirm’s  future  direction  
How  are  we  going  to  get  there?  
•  Crafting  an  action  plan  
that  will  get  us  there  
ž  Strategy  is  all  about  How:  
•  How  to  outcompete  rivals.  
•  How  to  respond  to  
economic  and  market  
conditions  and  growth  
opportunities.  
•  How  to  manage  functional  
pieces  of  the  business.  
•  How  to  improve  the  Cirm’s  
Cinancial  and  market  
performance.  
A  Cirm  does  strategy:  
To  improve  its  Cinancial  
performance.  
To  strengthen  its  competitive  
position.  
To  gain  a  sustainable  
competitive.  advantage  over  
its  market  rivals.  
 
A  creative,  distinctive  strategy:  
Can  yield  above-­‐average  proCits.  
Makes  competition  difCicult  for  
rivals.  
ž  To earn profits firms need to encompass a set of approachs.
ž  “Long range planning”, “planning, programming, budgeting” and
“business policy” needs to blend with immense emphasisis on
environmental forecasting and external considereations- these are the
approachs need to be all encompassed.
ž  In short we can conclude that the set of decisions and actions that result
in the formulation and implementation of plans designed to achieve a
comany’s objectives is known as Strategic Management.
ž  Formulating the company’s vision and mission.
ž  Conducting an analysis that reflects the company’s internal conditions
and capabilities.
ž  Assess the comapny’s external environment.
ž  Identifying the most desirable options by evaluating each options in the
context of company’s vision and mission.
ž  Select a set of long-term objectives and grand strategies that will achieve
the most desirable options.
ž  Develop annual objectives and short-term strategies that are compatible
with the selected set of long-term objectives and grand strategies.
ž  Implement the strategic choices by means of budgeted resources.
ž  Evaluate the success of the strategic process as an input for future
decision making
ž  Strategic issues require Top-management decisions
ž  Strategic issues require large amounts of the firm’s resources
ž  Strategic issues often affect the firm’s long term prosperity
ž  Strategic issues are future oriented
ž  Strategic issues usually have multifunctional or multibusiness
environment
ž  Strategic issues require considering the firm’s external environment
ž  The decision-making hierarchy of a firm typically contains three
levels.
Ø  Corporate Level
Ø  Business level
Ø  Functional Level

Corporate management are responsible for the firm’s finalcial


performance and for the achivement of nonfinancial goals.
They attempt to exploit their firm’s distinctive competencies by
adopting a portfolio approch to management of its businesses and
by developng long-term plans.
ž  Business level managers translate the statements of direction and intent
generated at the corporate objectives and strategies for individual
business divisions.

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