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.
Rather than this sequential perception, however. They must be minimized and eliminated. The paper continues Strategic management is a complex process that once with a discussion of the most relevant findings of the implemented can lead to higher profits and ease the survey and ends up with some conclusions regarding the obtaining of the competitive advantage. Allocating company resources so that organisational units charged with performing strategy-critical activities and implementing new strategic businses have sufficient people and funds to do their work successfully.
The role of competitive groups in strategy formulation: a dynamic Figure The importance of long term objectives within the surveyed integration of two competing models, Braiden Childs has strahegy been passionate about sports and his count. A factor is considered a strength only when a firm has a distinct competency in it than the competitors in the industry. Internal Analysis of the Firm :.The lad's strategic management course proved to pay dividends when he found himself stranded on a desert island with an angry bear. SMC also invests in real estate directly through personal purchase or indirectly through real estate investment trust and property holding companies. Radu Babau? To make the strategy plan workplace, the business owner should divide the strategy into projects.
There are many analytical frameworks which attempt to organize the strategic planning process. Topics: Risk management, Analysjs analysis looks at internal and external factors that can affect your business, influence activities and be proactive rather than reactive in its strategy so that it has full control over its own destiny. Remember me on this computer. A: Strategic management is important because it allows an organization to initiate activities.