strategic management - learning objectives ppt
- 1. Dr A.Sangeetha Assistant Profssor Sri Ramakrishna College of Arts & Science
- 2. Learning Objectives Understand the benefits of strategic management Explain how globalization and environmental sustainability influence strategic management Understand the basic model of strategic management and its components Identify some common triggering events that act as stimuli for strategic change Understand strategic decision-making modes Use the strategic audit as a method of analyzing corporate functions and activities
- 3. The Study of Strategic Management Strategic Management A set of managerial decisions and actions that determines the long- run performance of a corporation Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control
- 4. Phases of Strategic Management Phase 1: Basic financial planning Phase 2: Forecast-based planning Phase 3: Externally oriented strategic planning Phase 4: Strategic management
- 5. Benefits of Strategic Management The attainment of an appropriate match, or “fit,” between an organization’s environment and its strategy, structure and processes has positive effects on the organization’s performance. Strategic planning becomes increasingly important as the environment becomes more unstable. Clearer sense of strategic vision for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment
- 6. Impact of Globalization Globalization the integrated internationalization of markets and corporations has changed the way modern corporations do business Innovation describes new products, services, methods and organizational approaches that allow the business to achieve extraordinary returns Innovation is the implementation of potential innovations that truly drives businesses to be remarkable
- 7. Impact of Sustainability The triple bottom line involves: 1. the management of traditional profit/loss; 2. the management of the company’s social responsibility; and 3. the management of its environmental responsibility
- 8. Theories of Organizational Adaptation Population ecology once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions Institution theory organizations can and do adapt to changing conditions by imitating other successful organizations
- 9. Theories of Organizational Adaptation Strategic choice perspective not only do organizations adapt to a changing environment, but they also have the opportunity and power to reshape their environment Organizational learning theory an organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment
- 10. Creating a Learning Organization Strategic flexibility The ability to shift from one dominant strategy to another and requires: Long-term commitment to the development and nurturing of critical resources Learning organization Organizational learning is a critical component of competitiveness in a dynamic environment.