Description
Concept of strategic management
Concept of Strategy A strategy is a fundamental pattern of present and planned objectives, resource deployment and interactions of an organization with markets, competitors and other environmental factors A good strategy should specify: 1. What is to be accomplished? 2. Where? Industries, products, markets it focus 3. How? Which resources, activities will be allocated to each product market to meet environmental opportunities and threats and to gain competitive advantage Components of Strategy: There are five components or sets of issues within a well developed strategy 1. Scope: The number and types of industries, product lines and market segments it plans to enter 2. Goals and objectives: Desired levels of accomplishments- Volume growth, profits ROI over specific time period 3. Resource deployment- human and financial across product- markets, functional departments, management teams 4. Identification of sustainable competitive advantage Te organization needs to examine - Market opportunities in each business product-market - Core competencies or strengths relative to its competitors 5 Synergy: When a firm’s business, product market, resource deployment reinforce one another
Synergy enables the total performance of the related businesses to be greater than it would be otherwise The Hierarchy of strategies: Most organizations pursue a hierarchy of inter related strategies- each formulated at different levels of of the firm Three important levels are: 1. Corporate strategy 2. Business strategy 3. Functional strategies
doc_901630835.doc
Concept of strategic management
Concept of Strategy A strategy is a fundamental pattern of present and planned objectives, resource deployment and interactions of an organization with markets, competitors and other environmental factors A good strategy should specify: 1. What is to be accomplished? 2. Where? Industries, products, markets it focus 3. How? Which resources, activities will be allocated to each product market to meet environmental opportunities and threats and to gain competitive advantage Components of Strategy: There are five components or sets of issues within a well developed strategy 1. Scope: The number and types of industries, product lines and market segments it plans to enter 2. Goals and objectives: Desired levels of accomplishments- Volume growth, profits ROI over specific time period 3. Resource deployment- human and financial across product- markets, functional departments, management teams 4. Identification of sustainable competitive advantage Te organization needs to examine - Market opportunities in each business product-market - Core competencies or strengths relative to its competitors 5 Synergy: When a firm’s business, product market, resource deployment reinforce one another
Synergy enables the total performance of the related businesses to be greater than it would be otherwise The Hierarchy of strategies: Most organizations pursue a hierarchy of inter related strategies- each formulated at different levels of of the firm Three important levels are: 1. Corporate strategy 2. Business strategy 3. Functional strategies
doc_901630835.doc