1. Strategic Management u What is strategic management? u Strategic planning u Strategic implementation u Strategic control

2. What is strategy?

3. What is strategic management? u Strategic management involves strategic planning, strategic implementation, and strategic control. u Compare to traditional model of management.

4. Strategic planning u Anticipating the future, assessing present conditions, and making decisions concerning organizational directions, programs, and resource deployment.

5. Levels of planning u Corporate u Business u Operational/Functional

6. Steps in Strategic Planning u Mission u Formulating objectives u Strategic assessment u Strategy choice

7. Mission

8. Formulating objectives u Results the HCO seeks to accomplish. u They are derived and reflect the mission.

9. Strategic assessment u SWOT analysis u External environmental analysis u Internal analysis

10. Strategy choice u Formulation and evaluation of alternative strategies. u Strategies u Ultimate goal: achieve competitive advantage over rivals (gain market power).

11. Types of strategies to achieve competitive advantage u Position u Power u David versus Goliath

12. Position strategies u Business level. u Position the organization vis-à-vis other organizations within the market. u Low cost u Differentiation u Specialization/niche

13. Power strategies u Corporate level u Related to size u To achieve synergies

14. Types of power strategies u Vertical integration u Horizontal integration u Diversification

15. Methods to implement power strategies u Internal development u Purchase/Acquisition. u Cooperation

16. Strategy implementation u Organization structure u Culture u Leadership

17. Strategic control u Performance evaluation and feedback u Budgeting u Compensation systems