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Module 1. Lesson Proper

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25 views

Module 1. Lesson Proper

Uploaded by

Pauline Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategic Management Page 1 of 11

Introduction to Strategic Management

III. LESSON PROPER

1. Definition of Strategic Management


Strategic Management is the process of formulating, implementing, and evaluating
decisions that enable an organization to achieve its objectives. It involves setting long-
term goals, analyzing competitive environments, and making decisions that will allow
the organization to thrive in a competitive marketplace.
Strategic Thinking vs. Operational Thinking: While strategic thinking focuses on
long-term vision and overarching goals, operational thinking is concerned with the day-
to-day activities and efficiency of the organization. Strategic management requires
balancing both perspectives.
Discussion Questions: Why is it important for companies to have a clear strategy?

2. Importance of Strategic Management


Direction and Focus: Strategic management provides a sense of direction and outlines
measurable goals. It helps organizations stay focused on their long-term objectives.
Competitive Advantage: By understanding and anticipating market trends, strategic
management allows companies to develop unique strengths that set them apart from
competitors.
Adaptation to Change: The business environment is constantly changing. Strategic
management enables organizations to adapt to changes in technology, customer
preferences, and competitive landscapes.
Resource Allocation: It helps in the effective allocation of resources, ensuring that the
organization's assets are used efficiently to achieve its goals.

3. Levels of Strategy
Corporate-Level Strategy: Focuses on the overall scope of the organization and how
value is added to the different business units. It involves decisions about diversification,
mergers, acquisitions, and resource allocation among units.
Business-Level Strategy: Concerns how a business competes within a particular
industry or market. It includes decisions about pricing, product differentiation, and
market positioning.
Strategic Management Page 2 of 11
Introduction to Strategic Management

Functional-Level Strategy: Involves the specific strategies within functional areas of


the business, such as marketing, operations, finance, and human resources. It focuses
on supporting business-level strategy.

4. Strategic Management Process


1. Goal Setting: Defining the vision, mission, and objectives of the organization. This
stage involves setting both short-term and long-term goals.
2. Environmental Scanning: Analyzing internal and external environments to
understand the strengths, weaknesses, opportunities, and threats (SWOT analysis).
3. Strategy Formulation: Developing strategies based on the analysis, including
corporate, business, and functional strategies.
4. Strategy Implementation: Executing the chosen strategies by allocating resources,
developing policies, and aligning organizational structures.
5. Evaluation and Control: Monitoring the implementation of the strategy and making
necessary adjustments. This involves measuring performance, reviewing progress, and
making corrective actions if needed.

5. Key Elements of Strategy


Vision and Mission Statements: These statements define the organization's purpose
and aspirations, guiding strategic decision-making.
Core Competencies: The unique strengths and abilities that give an organization a
competitive edge. These may include specialized knowledge, technology, or skilled
personnel.
Value Proposition: The unique value that an organization offers to its customers. This
differentiates it from competitors and attracts customers.
Competitive Advantage: The attributes that allow an organization to outperform its
competitors, such as cost leadership, differentiation, or focus strategies.
Strategic Management Page 3 of 11
Introduction to Strategic Management

References:
Barney, Jay et. al (2019). Strategic Management and Competitive Advantage: Concepts
6th Edition. Publisher: Pearson
Forest, David et.al (2020). Strategic Management: A Competitive Advantage Approach,
Concepts and Cases 17th edition. Publisher: Pearson
Grant, Robert (2021). Contemporary Strategy Analysis 11th Edition. Publisher: Wiley
Martin, Frank et. al (2021). Strategic Management: Awareness & Change 9th Edition.
Publisher: Cengage Learning
Rothaermel, Frank (2020). Strategic Management: Concepts and Cases 5th Edition.
Publisher: McGraw-Hill Education

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