FUNDAMENTALS OF STRATEGIC MANAGEMENT

1. FUNDAMENTALS OF STRATEGIC MANAGEMENT

2. STRATEGIC MANAGEMENT -It takes into consideration various external as well as internal factors and the environment in general as well as competitiveness and sustainability over the long-term period in the industry or sector it belongs.

3. CHRACTERISTICS OF STRATEGY • Traditionally meant to be a grand plan in the light of what is was believed and adversary might do or might not do. • Derives its relevance given from the existence of a competition in the business • It is done in the presumption of the existence of a negative scenario

4. CHRACTERISTICS OF STRATEGY 4. It also connotes general program of action and deployment of emphasis and resources to attain comprehensive objectives 5. Strategy may, in some extreme or necessary cases, exist without a policy

5. STRATEGY VS. POLICY • In may instances, business policies exist amidst absence of business strategy and strategies may exist without the established business policies. • If ever they exist, business policies are generally directional in nature and strategy is more operational in context. • Business policies are often formal or written and strategies may be informal and not necessarily written and often confidential

6. STRATEGY VS. POLICY • In may instances, business policies exist amidst absence of business strategy and strategies may exist without the established business policies. • If ever they exist, business policies are generally directional in nature and strategy is more operational in context. • Business policies are often formal or written and strategies may be informal and not necessarily written and often confidential

7. STRATEGY VS. TACTICS • As to level of conduct, strategy developed a the highest level of management whereas tactics are employed and related to lower levels of management. • As to regularity, formulation of strategy is both continuous and irregular whereas tactics are determined on a periodic cycle with fixed time schedule.

8. STRATEGY VS. TACTICS 3. As to subjective values, strategic decision making is more heavily weighed with subjective values of managers than is tactical decision making. 4. As to the range of alternativeness, the total possible range of alternatives from which management must choose is far greater in strategic than in tactical decision-making

9. STRATEGY VS. TACTICS 5. As to uncertainty, uncertainty is usually much greater in both formulation and implementation of strategy than in deciding upon and knowing the results of tactical decisions

10. STRATEGIC TYPES • Defenders- This type includes companies with a limited product line that focus on improving the efficiency of the existing operations. This cost orientation makes them unlikely to innovate in a new area.

11. STRATEGIC TYPES 2. Prospectors- This type of companies includes firms with fairly broad product lines that focus on product innovation and market opportunities. They tend to emphasize creativity and over efficiency.

12. STRATEGIC TYPES 4. Reactors- This type includes companies that lack a consistent strategy-structure-culture relationship. Their responses to environmental pressures tend to be piecemeal strategic changes.

13. STRATEGIC TYPES 3. Analyzers- This type includes business organization that operate in at least two different product market areas, one stable and one variable. In stable areas, efficiency is emphasized. In variable areas, innovation is emphasized.

14. BASES OF POLICIES AND STRATEGIES • Legal Mandate • Vision and Mission statement • Specific Objectives • Programs and Policies

15. STRATEGY FOUR GENERIC APPROACHES • CLASSICAL APPROACH • EVOLUTIONARY • PROCESSUAL • SYSTEMATIC