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Introduction to Strategic Management Course Objectives • Explain What is Strategic Management • Explain What is a Strategy • Describe the Strategy Statement and its Components • Explain the Steps of Strategic Management Process • Describe the Components of Strategic Management Process • Differentiate between Strategy Formulation and Strategy Implementation • Differentiate between Strategic, Administrative and Operational Decisions • Describe the Qualities of a Strategic Leader • Explain What is a Business Policy • Describe the Structure of BCG Matrix • Describe the Factors of SWOT Analysis • Explain Porter’s Five Forces Model of Competition • Explain What is Corporate Governance • Explain What is Business Ethics • Describe the Core Competency Theory of Strategy Introduction • Helium Inc. is a leading manufacturer of electrical safety equipments such as Miniature Circuit Breakers (MCBs), Molded Case Circuit Breaker (MCCBs) etc. for the past six decades. • It has carved a niche for itself in this area and captures the largest market share in its industry and segment. Introduction • However, now Helium wants to venture into the mobile and Smartphone market. • It has decided to launch a range of mobiles and Smartphone that will cater to the various segments of the society. Introduction • What do you think Helium should do to become successful in its venture? • Yes, a careful strategy planning will help Helium recognize its position in the market, its competitors, and challenges etc. to help it become successful in its new venture. Strategy Statement and its Components Strategic Intent Mission Vision Statement Let us look at each in detail. Goals and Objectives Mission Goals: A goal is a desired future state or objective that an organization tries to achieve. The following the features wellbe defined Goals specify inare particular whatofmust done ifgoals: an organization is to attain its mission or vision. Goals make mission more prominent and concrete. They co• They are precise and measurable. ordinate and integrate various functional and departmental areas in an • They look after critical and significant issues. organization. • They are realistic and challenging. Objectives: • They must be achieved within specific timewants frame. Objectives are defined as goals thataorganization to achieve over a period of time. These are the foundation of planning. Policies are developed in an • They include both financial as well as non-financial components. organization so as to achieve these objectives. Formulation of objectives is the task of top level management. Real Life Example Vision Vision: “To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services.” Real Life Example Vision Mission Mission: “Sony is committed to developing a wide range of innovative products and multimedia services that challenge the way consumers’ access and enjoy digital entertainment. By ensuring synergy between businesses within the organization, Sony is constantly striving to create exciting new worlds of entertainment that can be experienced on a variety of different products.” Components of Strategic Management Process The image given below shows the components of the Strategic Management Process. Let us look at each component in detail. Real Life Example © ManagementStudyGuide.com. All rights reserved. Real Life Example © ManagementStudyGuide.com. All rights reserved. Real Life Example © ManagementStudyGuide.com. All rights reserved. Let’s look at each in detail. © ManagementStudyGuide.com. All rights reserved. Choice of Strategy Performance Analysis Aiming in context with the divisional plans Setting Quantitative Targets Evaluating the Organizational Environment Setting Organizations’ objectives Strategy Formulation Process The following are the six steps of strategy formulation process: Did You Know? People learn more from their failures than from their success. Hence, one of the best approaches to avoid copying best practices is to create a process involving frank discussion about worst practices. This will help create very effective strategies because people debate on the merits of different examples of good practice, scout the organizations for promising practices that may already be bubbling up and then develop a view of what next practice should be. ManagementStudyGuide.com Learn Management the Easy Way – A Continuous Learning for People of Any Age Group – Learn At Your Own Pace…. This is a DEMO Course On – Strategic Management. The Complete Presentation consists of – 210 Slides. Register Now & Download Your Set of FREE Presentations. Go to All Courses and Get Access to More than 75 Courses. For Every Course You Get Powerpoint Presentation + New Courses Added Every Week.