Presentation on Strategic Management in Action

1. Presentation on Strategic Management in Action Submitted by WWW.ASSIGNMENTPOINT.COM www.assignmentpoint.com

2. Learning Outline • Why is strategic management important? • Give four reasons why strategic management is important. • Discuss what studies have shown about the impact of strategic management on an organization’s performance. • What is strategic management? • Define strategy and strategic management. • Describe the strategic management process. • Describe the three levels of organizational strategies. • Explain the historical evolution of strategic management. www.assignmentpoint.com

3. Learning Outline (contd.) • Who’s involved with strategic management? • Explain the role of the board of directors in strategic management. • Discuss how top managers can be effective leaders. • Describe the role of other managers and organizational employees in strategy. • Strategic management in today’s world • Discuss how globalization issues affect strategic management. • Explain the concept of corporate governance and how it’s impacting strategic management. • Describe the three different strategic approaches to e-business. www.assignmentpoint.com

4. Why is Strategic Management Important? • It gives a role to everyone in an organization to manage strategically. • It helps the organization perform well. • It helps the organization to effectively cope with the uncertainties in the external and internal environment. • It helps to coordinate various functions and activities www.assignmentpoint.com

5. Definition of Strategy Goal-directed decisions and actions in which its capabilities and resources are matched with the opportunities and threats in its environment www.assignmentpoint.com

6. Strategy involves • Organization’s goals • Goal-directed actions • Matching key internal strengths with external opportunities and threats www.assignmentpoint.com

7. Definition of Strategic Management The process of analyzing the current situation, developing appropriate strategies, putting those strategies into action and evaluating, modifying, or changing those strategies as needed www.assignmentpoint.com

8. Figure 1.1 Basic Activities of Strategic Management Situation Analysis Strategy Formulation Strategy Evaluation Strategy Implementation www.assignmentpoint.com

9. Characteristics of Strategic Management Interdisciplinary Four aspects that set apart Strategic Management External focus Internal focus Future direction www.assignmentpoint.com

10. Figure 1.2Strategic Management in Action Analyzing Current Situation Deciding on Strategies Putting Strategies in Action Evaluating and Changing Strategies Situation Analysis Strategy Formulation Strategy Implementation Strategy Evaluation External Analysis Organizational Context Functional Competitive Chapter 2 Chapter 3 Chapter 5 Chapter 6 Internal Analysis Corporate Chapter 4 Chapter 7 www.assignmentpoint.com

11. The Strategic Management Process Situation Analysisentails scanning and evaluating • Organizational context • External environment • Organizational environment www.assignmentpoint.com

12. Figure 1.3 Levels of Strategies Corporate What direction are we going and what business(es) are we in or do we want to be in? Competitive: How are we going to compete in our chosen business(es)? Functional What resources and capabilities do we have to support the corporate and competitive strategies? www.assignmentpoint.com

13. The Strategic Management Process Strategy Implementation • Putting the organization’s various strategies into action Strategy Evaluation • Evaluating how the strategy has been implemented as well as the outcomes of the strategy www.assignmentpoint.com

14. The Strategic Management Process • A continuous cycle of • Situation analysis • Strategy formulation • Strategy implementation • Strategy evaluation www.assignmentpoint.com

15. Looking at Strategic Management’s Past Strategy’s Military Roots • Battlefield strategies to gain an edge on the enemy • Exploit enemy’s weak spots • Attack enemy where most vulnerable Academic Origins of Strategic Management • Mainstream economic theory • Scientific management (Taylor) • Bureaucratic organizations (Weber) • Administrative functions/open systems (Barnard) www.assignmentpoint.com

16. Looking at Strategic Management’s Past The 1960s • Strategic management established as separate field, basic concepts established The 1970s and 1980s • Process researchers (“how” strategy is formed) • Content researchers (“what” of a strategic decision) www.assignmentpoint.com

17. Who’s Involved with Strategic Management? • Board of Directors • Elected representatives of stockholders • Play significant role in corporate governance • Top Management Team • Ultimately responsible for every decision and action of every organizational employee • Act as strategic leaders • Other Strategic Managers and Organizational Employees • Responsible for strategy implementation and evaluation www.assignmentpoint.com

18. Table 1.1 Typical Board Responsibilities • Review and approve strategic goals and plans • Review and approve organization’s financial standards and policies • Ensure integrity of organization’s financial controls and reporting system • Approve an organizational philosophy • Monitor organizational performance and regularly review performance results • Select, evaluate, and compensate top-level managers • Develop management succession plans • Review and approve capital allocations and expenditures • Monitor relations with shareholders and other key stakeholders Other responsibilities may be assigned depending on the unique culture and needs of the organization www.assignmentpoint.com

19. Figure 1.4 Board Involvement in the Strategic Management Process APPROVING ROLE INITIATING ROLE (Lowest level of board involvement) (Highest level of board involvement) www.assignmentpoint.com

20. Figure 1.5 Effective Strategic Leadership Involves Determining Organizational Purpose or Vision Establishing Appropriately Balanced Controls Exploiting and Maintaining Core Competencies Effective Strategic Leadership Emphasizing Ethical Decisions and Practices Developing Human Capital Creating and Sustaining Strong Organizational Culture www.assignmentpoint.com

21. Strategic Management in Today’s World • Three important issues affecting strategic management in today’s world • Globalization • Corporate governance • E-business www.assignmentpoint.com

22. Corporate Governance • Corporate governance is the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad participants in organizations • Sarbanes-Oxley Act of 2002 – a U.S. federal law designed to protect investors by improving the accuracy and reliability of corporate disclosures www.assignmentpoint.com

23. Chapter One ? Questions www.assignmentpoint.com