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 firm's objectives follow from its formulztion. It may not be possible to draw a clear line of difference between each phase, and the change-over from one phase to another is gradual. Master of Science in Strategic Management.
Bernard says "The process is the sensing of the organization as a whole and the total situation relevant to it. In strategic management, the presence of strong core values for an organisation helps build institutional identify? Strategy analysis may be looked upon as the starting point of the strategic management process. Opportunities - Opportunities are presented by the environment within which our organization operates.