CHAPTER 6 Strategy Formulation: Situation Analysis & Business Strategy - ppt video online downloadStrategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organisation. An organisation is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. It is also the process which helps managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved, its competitors; and fixes goals to meet all the present and future potential competitors and then reassesses each strategy. In this article we will discuss about the various steps, stages and phases involved in the strategic management process. The steps, stages and phases involved in strategic management process can be studied under the following heads:. Developing a Strategic Vision and Business Mission 2.
Or market development strategy may require an additional division to be added to the company. He recommended eight areas where objectives should be set, physical and financi. It is rare that the company will be able to follow the process from the first to the last step. Boston Consulting Group.Must possess strategic vision, motivational capabili. Two-way linkages make HR a part of the strategic formulation plan team. Human Resource Management. Flrmulation partner with private and public sector organisations to deliver their strategies successfully.
Inwriting that strategic management: , with a career spanning five decades. The basic point of the strategic plan should be to choose a direction for the firm that makes sense in terms of the external opportunities and threats it faces and the internal strengths and weaknesses it possesses. Peter Drucker was a prolific management theorist and author of dozens of management books. Analyzis new strategy changes the organizational structure and requires reallocation of resources.
Multidimensional scalingdiscriminant analysis. Employees are trained to provide effective customer services. The Strategic Management Process. Arianne Lou-Ella C. Evaluation of Strategies.
Strategy formulation -Strategic planning or long-range planning Develops mission, objectives, strategies, policies. Focuses on improving competitive position of companys products or services within the specific industry or market segment. Cost Leadership -Low-cost competitive strategy Broad mass market Efficient-scale facilities Cost reductions Cost minimization Cost Focus Low-cost competitive strategy Focus on market segment Niche focused Cost advantage in market segment. Differentiation Focus Specific group or geographic market focus Differentiation in target market Special needs of narrow target market.
The initial conclusion of the study was unambiguous: the greater a company's market share, the greater their rate of profit. We only briefly touch on the external analysis in this article, though it is just as critical to the process. This is the second step in the strategic management process. Learn how a manager or CEO develops a business strategy, including analyzing the market and creating competitive advantage.
The plummeting of transaction costs weakens the glue that holds value chains together, monitoring! Companies continued to diversify as conglomerates until the s, and allows them to separate, when deregulation and a less restrictive antitrust environment led to the view that a portfolio of operating divisions in different industries was worth more as many independent companies. In expanding beyond the goal-oriented or pre-ordinate evaluation design, responsive evaluation takes into consideration the program's background histo. Strategic management does not replace traditional management activities such as b.