LESSON 1 Flashcards
Strategic Management
- Management
- Marketing
- Economics
- Financial management
- HR management
- Managerial accounting
the art and science of formulating,
implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives
Strategic Management
A plan of actions designed to achieve a particular goal
strategy
strategy Originated from the Greek word
‘strategos’
refer to the act of maneuvering troops into position, deployment of troops before the enemy is actually engaged
strategy
strategos meaning
meaning ‘the art of the general’ or ‘general’s view’
5P (Henry Mintzberg)
plan
ploy
pattern
position
perspective
“Strategy is when you are out of ammunition, but keep on firing so that the enemy won’t know”
(Unknown)
“Strategies are the means by which long-term objectives will be achieved”
(Fred David, 2007)
“Strategy is essentially, a way of channeling resources to achieve a goal”
(Nigel Nicholson, 2004)
Types of Strategy
- International/Regional
- National
- Industry/Sectoral
- Organization/Company/Corporate
- Business/Service
- Functional
Strategy which involves the cooperation of multiple nations usually within a particular continent or region
International/Regional
examples are
In 1999 EU strategy to create a single European Currency (As of 2009, 13 out of 27 EU countries are using Euro)
* ‘ASEAN’ strategy on widening cooperation to become ‘ASEAN + 3
International/Regional
The main strategies of a particular nation
National
examples are
- Introducing Vision 2020 in 1991
- Introducing 7 National Key Result Area (NKRA) in 2009
National
Strategy which is focused on a particular industry or sector in a particular nation
industry/sectoral
example is
- In 2005 Malaysia established a National Biotechnology Policy which provides a comprehensive framework to guide biotechnology development efforts in the country
industry/sectoral
Strategy which guides the particular organisation to achieve its goals
Organisation / Company /Corporate
example is
Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the national oil and gas firm wants to expand its core business as well as diversify but is mindful of its cash position
Organisation / Company /Corporate
Certain organisations are involve in more than one business or services. For each business or service, it is wise to have specific strategies
Business /Service
example is
MESTEC must develop strategies for each of its services and also several strategies that encompass combination of ‘Energy, Science, Technology, Environment & Climate Change’ service
Business /Service
Specific strategy for each function that exists in the business or service of a particular organisation
functional
example is
Each functions in the organisation, such as HR, Finance, Logistics and others need to have its own strategies to ensure goals achievement
functional
Stages of Strategic Management
- Formulating
- Implementation
- Evaluation
- developing a vision and mission
statement, identifying an organization’s external
opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing strategies to pursue
Formulating
establish annual objectives, devise
policies, motivate employees, and allocate resources so
formulated strategies can be executed.
Implementation
-final stage, includes 3 fundamental
activities
Evaluation
3 fundamental activities in evaluation
Reviewing external and internal factors as bases for
current strategies
Measuring performance
Taking corrective actions
an organization’s process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy
Strategic Planning
It is a SYSTEMATIC process that involves defining an organization’s long-term vision, setting
specific goals and objectives, and developing strategies to achieve them.
Strategic Planning
Importance of Strategic Planning:
*Provides Direction and Focus
*Improves Resource Allocation
*Enhances Decision-Making
*Encourages Proactive Management
*Boosts Organizational Performance
*Facilitates Risk Management
*Ensures Sustainability and Growth
Key Elements of Strategic Planning:
- Vision and mission
- Goals and objectives
- Environmental analysis
- Strategy formulation
- Implementation
- Evaluation and COntrol
Defines the organization’s purpose and long-term
aspirations.
Vision and Mission
Specific, measurable targets aligned with the vision.
Goals and Objectives
Assessing internal strengths and weaknesses, as well as
external opportunities and threats (SWOT Analysis).
Environmental Analysis
Developing a strategic approach to achieve objectives.
Strategy Formulation
Allocating resources and executing the strategies.
Implementation
Monitoring performance and making adjustments as
needed.
Evaluation and Control
Tool used to evaluate internal strengths and
weaknesses and external opportunities and threats
Used in strategic planning
SWOT Analysis
