Lesson 1 Strategists – there are companies who employ them.

Their job is to think and plan strategically to improve

STRATEGIC MANAGEMENT company functions.
Introduction
Four (4) Steps to Strategic Management:

 Strategic Management involves the formulation 1. Analysis

and implementation of the major goals and 2. Formulation
initiatives taken by an organization’s managers, 3. Execution
based on consideration of resources and an 4. Evaluation
assessment of the internal and external
environments in which the organization ANALYSIS - Before planning a new strategic process,
operates. you must evaluate the current process to achieve your
goal.
 Strategic Management is the use of business
resources to reach company’s goals and  Consider what is working and what is not;
objectives.  Gather inputs from stakeholders;
 Do the SWOT (Strengths, Weaknesses,
 It requires reflection on the processes and Opportunities and Threats) analysis
procedures within the organization as well
external factors that may have an impact on how FORMULATION – Once you have the information you
company functions. need, its time to create an action plan for reaching the
goal.
 The process of strategic management should
guide top level actions and decisions. Make sure, the steps are clear, focused and directly
related to the goal.
 Companies of all sizes and in all industries can
benefit from the practice of strategic Prepare easy to understand implementation guidelines if
management. the process or procedure will impact many people within
the organization.
Strategic Management includes:
EXECUTION – Follow the steps outlined in your
1. Setting of objectives for the company; strategic plan.
2. Analyzing the actions of competitors;
3. Reviewing the organizations internal Make sure the stakeholders are implementing the plan
structure; as designed for maximum efficiency.
4. Evaluating current strategies and confirming
strategies are implemented company-wide. EVALUATION – Evaluate the final product. Did you
achieve your goal?
 Strategic Management is the sum of strategic
planning and strategic thinking. Was the process implemented appropriately company-
 Strategic Planning is the identification of wide ?
achievable goals.
 Strategic thinking is the ability to identify the Reflect / Revise as needed
needs of the organization to achieve the goals Benefits of Strategic Management:
identified through strategic planning.
1. Competitive Advantage
How does Strategic Management Work? Because of the proactive nature which means
your company will always be aware of the
Strategic Management can either be prescriptive changing market.
or descriptive.
2. Achieving Goals
 Prescriptive Management means Helps keep goals achievable by using a clear
developing strategies in advance of an and dynamic process for formulating steps and
organizational issue. implementation.
 Descriptive Strategic Management means
putting strategies into practice into practice 3. Sustainable Growth
when needed Strategic Management has been shown to lead
Upper Management – is responsible for implementing to more efficient organizational performance,
strategies, ideas or goals or organizational challenges which leads to manageable.
can come from any member of the company.
 4. Cohesive Organization –  Includes providing consistent marketing
Strategic Management necessitates collateral, both physical and digital to all
communication and goal implementation retail locations
company-wide.  Sending representatives to each retail
location to explain
An organization that is working in unison  Sets up communication links to all stores.
towards a goal is more likely to achieve its goals.
3. Execution
5. Increased Managerial Awareness  Seeing things … if the strategies used
have worked
Strategic Management means looking toward  If not, the managers/strategists should
the company’s future. If managers do this use the result of their observations to
consistently, they will be more aware of industry plan for the next move
trends & challenges.

By implementing strategic planning and thinking, Activity for Lesson 1:

they will be better prepared to face future
challenges. 1. Come up with your own example of a SWOT
Analysis. Be able to illustrate a company
EXAMPLE: situation and analyze the same by enumerating
its strength, weaknesses, opportunities and
Furniture Company Wood’s Fine Furnishings is threats.
preparing to introduce a new line of kitchen tables. They
decided to implement strategic management to ensure
that the product release goes smoothly efficiently and
consistently across all their retail locations.

1. Analysis:
In the past, Woods Fine Furnishings suffered from
inconsistent marketing and incorrect shipping costs
with the release of new products in their multiple
retail locations.

Before the release of their new table line, they have

decided to run a SWOT analysis to see how they
can improve the process.
 Strengths:
Quality product
Several locations for ease of purchase
Flat shipping rate

 Weaknesses:
Poor communication between store
managers and between store employees
Shipping rate applied times at some stores
Inconsistent marketing strategy

 Opportunities:
Unified Marketing
Transparent fees

 Threats:
Wood’s Fine Furnishings
Man’s competitors
Released a line of kitchen tables last
quarter

2. Formation
Using the SWOT analysis, Woods Fine
Furnishings creates a strategic plan for the
release of their kitchen tables.