Transcript Strategic Management Theory and practice T1 Introduction

Strategic Management
Introduction
Business administration’06-07
Prof.Dr. E.Vatchkova
Contents





Strategy as a subject of study
Defining Strategic management
Main components
Strategic management in different context
Strategic management vs. Operational
management
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
Three main aspects



STRATEGY ITSELF
EXCELLENCE IN THE IMPLEMENTATION
FOR EFFECTIVE PERFORMANCE
INNOVATION – TO RESPOND TO
PRESSURES FOR CHANCE
COUNSTABLE (1980)

management processes and decisions
which determine the long-term structure
and activities of the organization
Management process
 Management decision
 Time scale
 Structure

ANSOFF (1987)

Strategic management involves:

Strategic planning

Management capability plan

The overall process of strategic change
1
ENVIRONMENT
WHAT IS POSSIBLE?
4
STRATEGY
WHAT DO WE DO?
3
2
OBJECTIVES
WHAT DO WE WANT?
RESOURCES
WHAT DO WE HAVE?
A summary model of the elements of SM
Culture and
stakeholder
expectations
The
environment
Resources and
strategic
capability
Strategic
analysis
Identifying
strategic
options
Strategic
choice
Strategy
implementation
Evaluating
options
Selecting
strategy
Managing
strategic
change
Planning and
allocating
resources
Organization
structure and
design
Strategic constituents
Media
Owners
Costumers
Suppliers
Employees
Competitors
Organization
Community
Organizations
Governments
Consumer
Special
Interest
Groups
Advocates
Planning instruments used in SM
•
•
•
•
•
•
•
•
Aspirations planning
Corporate
Administration
Productivity
Innovation
Contingency
Team culture
Shock event
Strategic
management
•
•
•
Ambiguity
Complexity
Non-routine
•
Organization-wide
Fundamental
•
Significant change
•
•
Environment or
expectations driven
vs
Operational
management
•
Routinised
•
Operationally specific
•
Small-scale change
•
Resource driven
Components of strategic planning
Defining
organizational
purpose
and
mission
Redefine?
Setting
organizational
goals
Formulating
organizational
strategic
plan
Implementing
strategic
plan
Evaluating
and
reformulating
strategic
plan
Reset?
Reformulate?
Rework?
Expected
results?
Environmental
Scanning
External
Societal
Environment
General forces
Task
Environment
Industry
analysis
Internal
Structure
Chain of
command
Strategy
Formulation
Strategy
Implementation
Evaluation
And Control
Mission
Reason
for
existence
Objectives
What
results to
accomplis
h by when
Strategie
s
Plan to
achieve the Policies
mission &
objectives Broad
guidelines
for
decision
making
Culture
Beliefs,
expectations,
values
Programs
Activities
needed to
accomplish
a plan
Budgets
Cost of the
programs
Procedures
Sequence
of steps
needed to
do the job
Resources
Assets, skills,
competencies,
knowledge
Feedback/Learning
Process
to monitor
performance
and take
corrective
action
Performance