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Strategic Management
• Strategic management is the process of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.
• An analysis of the current business situation, the formulation of budgeting, objectives and strategies form basis of a sound strategic management plan
FEATURES OF STRATEGIC MANAGEMENT
Strategy Management
Goal Setting
Analysis
Strategy formulationStrategy Implementation
Strategy Monitoring
Role of Strategic Managers
Identify long-range targets
Scan operating environment
Evaluate structures and resources
Match to challenges faced
Identify stakeholders
CHARACTERISTICS OF STRATEGIC MANAGEMENT
EXPLORING BEYOND THE BOUNDARIES OF YOUR ORGANIZATION
Looking in: ASSESSING INTERNAL SYSTEMS AND STRUCTURES
CHARACTERISTICS OF STRATEGIC MANAGEMENT
CHARACTERISTICS OF STRATEGIC MANAGEMENT
Looking ahead: MELDING STRATEGY WITH STRUCTURE WHILE MONITORING PROGRESS
Strategic Management and Strategic Planning
Strategic Planning provides the platform for Strategic Management
Strategic planning helps with seeing the big picture and making it a reality by breaking it up into easily managed chunks
• Whatever the type of change - restructuring, new processes, organizational merger, new systems, change of leadership, and so on - the model can be used to:
» understand how the organizational elements are interrelated
» ensure that the wider impact of changes made in one area is taken into consideration.
The McKinsey 7S Framework Model
The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually
reinforcing.
The 7S Framework as a tool of Strategic Planning
use the 7S model to help analyze the current
situation
use the 7S model to help analyze a proposed future
situation
adjust and tune the elements of the 7S model
to ensure that your organization achieves the
desired results
NOWStage
WHEREStage
HOWStage
Structure
Strategy Systems
Skills
Staff
Shared Values
Style
Strategy
Structure
Systems
Style
Staff
Skills
Shared Values
The plan devised to maintain and build competitive advantage over the competition
The way the organization is structured and who reports to whom
Daily activities and procedures that staff members engage in to get the job done
The style of leadership adopted
The employees and their general capabilities
The actual skills and competencies of the employees working for the company
Called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the
corporate culture and the general work ethic
Placing Shared Values in the middle of the model emphasizes that these
values are central to the development of all the other critical elements.
The original vision of the company is formed from the values of the
creators. As the values change, so do all the other elements.
Strategic Moves in Pakistan
• PTCL takeover by Etisalat• Bid $2.6 billion• According to experts it was overpriced by $1
billion• Payment delayed• Terms of payment rescheduled• Large scale redundancies and inefficiencies
found by Etisalat
The country’s first hostile take over was averted with an out of court settlement
Mr. Hussain Dawood stepped back and let the existing management continue running the business
The Dawood group (sponsors of Dawood Hercules Chemical--a competing urea producer) took over
control of Engro Chemical
Takeover of Adamjee Insurance by MCB Mansha Group
First hostile takeover bid in the country’s corporate history
The litigation spread over 2 years
AIC filed several petitions against the takeover
Union Bank acquired by
Standard Chartered Bank
Making it the largest bank in
Pakistan
Initially the bank acquired 80.86 per
cent shares in Union Bank Ltd. for $413 million
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