1. Strategic Management –Defined
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives
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2. 3 Stages of the Strategic Management Process
Strategy formulation
Strategy implementation
Strategy evaluation
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3. Strategy Formulation Vision & Mission External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
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4. Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
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5. Performance Measurement
Strategy Evaluation
Internal Review
External Review
Performance Measurement
Corrective Action
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6. Anything that a firm does especially well compared to rival firms
Strategic Management is Gaining and Maintaining Competitive Advantage
Anything that a firm does especially well compared to rival firms
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Publishing as Prentice Hall

7. Vision and Mission Statements
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
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Publishing as Prentice Hall

8. External Opportunities and Threats
Analysis of Trends
Economic
Social
Cultural
Demographic/Environmental
Political, Legal, Governmental
Technological
Competitors
Threats are not controllable by an organization
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9. Internal Strengths and Weaknesses
Controllable activities performed especially well or poorly
Determined relative to competitors
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10. Long-term means more than one year
Long-Term Objectives
Specific results that an organization seeks to achieve in pursuing its basic mission
Long-term means more than one year
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11. Strategies Examples Geographic expansion Diversification Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
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12. Why Some Firms Do No Strategic Planning
Lack of knowledge of strategic planning
Poor reward structures
Fire fighting
Waste of time
Too expensive
Laziness
Content with success
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13. Why Some Firms Do No Strategic Planning (continued)
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Honest difference of opinion
Suspicion
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14. Comparing Business and Military Strategy
Strategic planning started in the military
Similarity
Both business and military organizations must adapt to change and constantly improve
Difference
Business strategy assumes competition
Military strategy assumes conflict
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall