strategic management

• Strategic Management


  The continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives, including financial performance. Critical process in every business.
• Strategic Management


  1. Analyzing internal and external environment (SWOT analysis)

  2. Creating action plans

  3. Implementing the action plan

  4. Evaluating to what degree the action plan was successful and make changes when desired results are not produced
• The three big strategic questions

  • Where Are We Now?
  • Where Do We Want To Go?
  • How Will We Get There?
• Vision Statement


  An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.
• Mission Statement


  Its purpose is to focus and direct the organization itself. It communicates primarily to the people who make up the organization— its members or employees— giving them a shared understanding of the organizations intended direction.
• SMART Objectives


  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time-bound
• Balance Scorecard


  A set of measures that gives top managers a fast but comprehensive view of the business. It includes financial measures that tell the results of actions already taken, and complements the financial measures with operational measures on customer satisfaction, internal processes and the organization's innovation and improvement activities.
• Using the Balance Scorecard

  1. Compiling data from past performance in a single report

  2. Identifying inefficiencies

  3. Devising plans for improvement

  4. Communicating goals and priorities to employees and stakeholders
• Benefits of the Balance Scorecard

  • Ability to bring information into a single report
  • Tracking performance in service and quality in addition to financial data
  • Recognizing and reducing inefficiencies
• Four critical processes of the Balance Scorecard

  1. Clarifying and translating vision into strategy

  2. Communicating strategic objectives and measures and linking them to operations

  3. Planning and setting targets to align strategic initiatives

  4. Enhancing strategic feedback and learning
• Four perspectives of the Balance Scorecard

  • Financial Perspective
  • Customer Perspective
  • Internal Business Process
  • Learning and Growth Objectives
• Components of the Balance Scorecard


  • Objectives
  • Measures
  • Targets
  • Initiatives
• Uses of the Balance Scorecard

  • Communicate Goals
  • Align Daily Tasks with Strategies
  • Prioritize Projects
  • Measure Performance
  • Monitor Progress
• Four types of strategies

  • Integration Strategies
  • Intensive Strategies
  • Diversification Strategies
  • Defensive Strategies
• Types of Executives


  • Chair of the Board (COB)
  • Chief Executive Officer (CEO)
  • Chief Operating Officer (COO)
  • Chief Financial Officer (CFO)
  • Chief Marketing Officer (CMO)
  • Chief Information Officer (CIO)
  • Chief Commercial Officer (CCO)
  • Chief Human Resources Officer (CHO)
  • Chief Technology Officer (CTO)
  • Chief Content Officer (CCO)
  • President
  • Vice President
  • Directors and Managers
• FOUR TYPES OF STRATEGIES

  • Integration Strategies
  • Intensive Strategies
  • Diversification Strategies
  • Defensive strategies
• Integration Strategies


  • Forward integration
  • Backward integration
  • Horizontal integration
• Vertical integration strategies


  Allow a firm to gain control over distributors, suppliers, and/or competitors
• Intensive Strategies


  • Market penetration
  • Market development
  • Product development
• Intensive strategies


  Require intensive efforts if a firm's competitive position with existing products is to improve
• Diversification Strategies


  • Related
  • Unrelated
• Related diversification


  When the business' value chains posses competitively valuable cross-business strategic fits
• Unrelated diversification


  When their value chains are so dissimilar that no competitively valuable cross-business relationship exist
• Most companies favor related diversification strategies in order to capitalize on synergies
• Defensive strategies


  • Retrenchment
  • Divestiture
  • Liquidation