Strategic Management - created from Mind Map

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"Strategic management is concerned with deciding on strategy and planning how that strategy is to be put into effect"

STRATEGIC FIT VS STRATEGIC INTENT

CHALLENGES

Analyzing the definition

Strategic management is a continuous process but that does not mean that the organisation never finishes its strategic work. Managers require different emphasis and effort of varying intensity at different times.

Phase 1: Basic Financial Planning: The first phase of (he strategic development is fairly a simple routine of basic finanCial planning.

Benefits of strategic management

Phase 2: Forecast-hased Planning: During this phase, the primary concern is mainly on effective plans, environmental scanning, plan for the future

Phase 3: Externally-oriented Planning: There is a remarkable shift during this phase_ The notable developments include: increasing response to markets and competition

Phase 4: Strategic Management: The focus shifts over time from meeting the budget tú planning for the future, to thinking abstractly, to working te create desired future.

(i) Strategic management helps an organisation ro be proactive racha future.

ii) II helps organisations not only tu respond ro its relevant environmen

(iii) it helps organisations lo make effective strategies through che use of a more systemauc, logical and rational approach

(v) II encourages the organisations ro decentralise the management process

• I d e n t i f y corporate vision, mission, objectives and goals, • A n a l y s e the corporate external environment to identify opportunities and threats, • S c a n the corporate interna' environment to identify strengths and weaknesses of the company, • R e v i s e the corporate mission, i f there is any drastic deviation in the externa' environment • C r a f t the strategic alternatives based mostly on (he corporate opportunities and strengths.

VISSION AND MISSION STATEMENT

strategic management process includes

External environ mental analysis provideS business opportunities and threats.

Internal environmental anaiysis provides business's strengths and weaknesse

1. formulation of vission

2. formulation of mission

3.objective

4. goals

strategies SWOT strategies

The next logical step is lo bring the alliance between opportunities and appropriate strengths, taking stock of weaknesses in relation to opportunitles, study the possibility of correcting the weaknesses and study (he threats, altering the strengths to convert the threats into opportunities.

I Technological Advaneements and Strategie Management:

(II) Product/Service Innovation and Development and Strategie Management:

(itr) Quality Issues and Strategic Management

(iii) Global Issues and Strategle Management