Strategic Management Introduction

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Strategic Management Introduction

• Business administration06-07
• Prof.Dr. E.Vatchkova

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Contents

• Strategy as a subject of study
• Defining Strategic management
• Main components
• Strategic management in different context
• Strategic management vs. Operational management

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Strategic Management

• Primarily concerned with how organizations and
  managers can make appropriate decisions to ensure
  the long term survival and success of the
  organization, in condition of substantial
  complexity and uncertainty

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Three main aspects

• STRATEGY ITSELF
• EXCELLENCE IN THE IMPLEMENTATION FOR EFFECTIVE
  PERFORMANCE
• INNOVATION TO RESPOND TO PRESSURES FOR CHANCE

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COUNSTABLE (1980)

• management processes and decisions which
  determine the long-term structure and activities
  of the organization
• Management process
• Management decision
• Time scale
• Structure

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ANSOFF (1987)

• Strategic management involves
• Strategic planning
• Management capability plan
• The overall process of strategic change

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ENVIRONMENT WHAT IS POSSIBLE?
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STRATEGY WHAT DO WE DO?
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OBJECTIVES WHAT DO WE WANT?
RESOURCES WHAT DO WE HAVE?
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A summary model of the elements of SM
Culture and stakeholder expectations
Resources and strategic capability
The environment
Strategic analysis
Identifying strategic options
Strategy implementation
Strategic choice
Planning and allocating resources
Evaluating options
Organization structure and design
Managing strategic change
Selecting strategy
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Strategic constituents
Media
Owners
Costumers
Suppliers
Competitors
Organization
Employees
Governments
Community Organizations
Consumer Advocates
Special Interest Groups
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Planning instruments used in SM

• Aspirations planning
• Corporate
• Administration
• Productivity
• Innovation
• Contingency
• Team culture
• Shock event

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Strategic vs Operationalmanageme
nt management

• Ambiguity
• Complexity
• Non-routine
• Organization-wide
• Fundamental
• Significant change
• Environment or expectations driven

• Routinised
• Operationally specific
• Small-scale change
• Resource driven

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Components of strategic planning
Defining organizational purpose and mission
Setting organizational goals
Formulating organizational strategic plan
Implementing strategic plan
Evaluating and reformulating strategic plan
Redefine?
Reset?
Reformulate?
Rework?
Expected results?
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Feedback/Learning