Strategic Strategic ManagementManagement

Dr. Hamed Hassaan-PhDDr. Hamed Hassaan-PhD

Professor of Strategic Management Professor of Strategic Management

Weller IBS, Paris-FranceWeller IBS, Paris-France

Chapter oneChapter one Basic ConceptsBasic Concepts

IntroductionIntroduction

• Business World of today is Business World of today is mainlymainly characterized by: characterized by:

Continuous Fast ChangingContinuous Fast Changing (Dynamic) (Dynamic) Environ.Environ.

High Uncertainty of the Environments.High Uncertainty of the Environments. Globalization of the Market.Globalization of the Market. How does a company become How does a company become SuccessfulSuccessful

and and staystay SuccessfulSuccessful for long in this for long in this dynamic uncertain global situation? dynamic uncertain global situation?

Certainly, not by the traditional way of Certainly, not by the traditional way of management what so ever but through ….management what so ever but through ….

Strategic Management Process; why?Strategic Management Process; why?

Introduction…Introduction…

•Strategic Management Strategic Management becomes now more essential to becomes now more essential to both both SmallSmall and and LargeLarge firms for firms for EffectiveEffective and and EfficientEfficient management, to be management, to be SuccessfulSuccessful and and Stay Successful Stay Successful not only in not only in the today’s business, but in the today’s business, but in tomorrow’s as well and tomorrow’s as well and For LongFor Long..

BackgroundBackgroundCase 1;Case 1; IBM IBM During1970 -1980During1970 -1980, , IBMIBM dominated computer industry dominated computer industry

worldwide for both mainframes and PCs. worldwide for both mainframes and PCs. By 1990s By 1990s New ComersNew Comers; HP, Dell, Gateway, Compaq ; HP, Dell, Gateway, Compaq

were invading market with high quality & cheaper were invading market with high quality & cheaper price. price.

By 1993By 1993, IBM lost $14 B. & its stock price dropped., IBM lost $14 B. & its stock price dropped.What Strategic Management Process IBM have to What Strategic Management Process IBM have to

follow to survive?.(Turn around-Retrenchment follow to survive?.(Turn around-Retrenchment Strategy)Strategy)

From 1994-2000From 1994-2000, IBM transformed itself from computer , IBM transformed itself from computer maker to service provider and dominating this market. maker to service provider and dominating this market.

By 2000By 2000, its global service unit grew from 0- $ 30B. , its global service unit grew from 0- $ 30B. By 2004By 2004, it , it divested divested PC business to Lenovo.PC business to Lenovo.

Background…Background…Case 2;Case 2; Kodak Kodak• KodakKodak;; a Photographic a Photographic US co., Est. since 1892US co., Est. since 1892

2007 2007 20082008

• Total AssetsTotal Assets 13.659 $M 13.659 $M 9.179 9.179

• Total Equity Total Equity 3.0293.029 961961

• Revenue Revenue 10.301 10.301 9.4169.416

• Net IncomeNet Income 676 676 (711)(711)

New TechnologyNew Technology; Digital Tech; Digital Tech., while Kodak ., while Kodak had a wrong concept that consumers would be had a wrong concept that consumers would be slow to adopt it. Its core business became slow to adopt it. Its core business became obsolete. Huge investment required to change. obsolete. Huge investment required to change.

Background…Background…ConclusionConclusion: : Giant Corporations Giant Corporations would be out of business, would be out of business,

if it can’t timely manage the change.if it can’t timely manage the change.In today’s business, as we are living in In today’s business, as we are living in uncertainuncertain

and and fast dynamicfast dynamic environments (more than in environments (more than in any preceding era) any preceding era) the only constant is the only constant is changechange..

All organizations must be capable of indentifying All organizations must be capable of indentifying and adapting to change to survive (L&S), and adapting to change to survive (L&S), HowHow? ?

Strategic Management Strategic Management is aimed at allowing is aimed at allowing organizations to adapt to change over long run to organizations to adapt to change over long run to be successful and stay successful.be successful and stay successful.

Strategic Management Strategic Management At the present time and in our today’s business:At the present time and in our today’s business:It is not the strongest Species that surviveIt is not the strongest Species that surviveNor the most intelligent…Nor the most intelligent…But the one But the one most Responsive to Changemost Responsive to Change Strategic ManagementStrategic Management will learn us How to will learn us How to

timely manage the changes. timely manage the changes. ConclusionConclusion: : St. M. is the St. M. is the Long run ManagementLong run Management

of the corporation of the corporation effectivelyeffectively and and efficientlyefficiently to to be be successfulsuccessful and to stay and to stay successful successful in an in an uncertain dynamic environmentsuncertain dynamic environments..

DefinitionsDefinitions

What is Management?What is Management?It is a It is a Decision Making ProcessDecision Making Process of of

PPlanning, lanning,

OOrganizing, rganizing,

LLeading, eading,

CControlling and ontrolling and

AAllocating the llocating the Scarce Resources Scarce Resources

to achieve the Organization to achieve the Organization GoalsGoals. .

The scarce resources are:The scarce resources are: people, money and time. people, money and time.

Management is the managing of peoples Management is the managing of peoples to achieve certain goalsto achieve certain goals..

Definitions…Definitions…

What is What is Strategic ManagementStrategic Management? and? and What is its What is its Benefits and ValueBenefits and Value??What is Management? andWhat is Management? andWhat is Strategy? What is Strategy?

•ManagementManagement:: is a Decision Making is a Decision Making Process to achieve the corporation Process to achieve the corporation goal.goal.

•StrategyStrategy is a long run plan to is a long run plan to achieve a certain goalachieve a certain goal..

DefinitionDefinition Strategic Management Strategic Management is a set of is a set of Managerial Decisions and Managerial Decisions and

ActionsActions that determines the that determines the Long-Run Long-Run PerformancePerformance of a Corporation.of a Corporation.

Strategic ManagementStrategic Management integrates integrates all the all the business modules (Management, business modules (Management, Marketing, Accounting, Finance, HRM, Marketing, Accounting, Finance, HRM, Operation & Logistics, R&D, ISM….) to Operation & Logistics, R&D, ISM….) to develop strategies that meet the develop strategies that meet the Corporation Mission and Objectives. Corporation Mission and Objectives.

Benefits of Strategic Benefits of Strategic ManagementManagement

1-It supports Top Managements to manage 1-It supports Top Managements to manage their companies:their companies:

• EffectivelyEffectively and and EfficientlyEfficiently

• To become To become ssuccessfuluccessful and to stay and to stay successfulsuccessful

• For LongFor Long

• Managing the changeManaging the change; ; Managing the Managing the dynamic uncertain surrounding dynamic uncertain surrounding environment-e.g. New comer and/or new environment-e.g. New comer and/or new technology.technology.

Benefits of Strategic Benefits of Strategic ManagementManagement

2-It helps corporation to fit between the 2-It helps corporation to fit between the surrounding environment and its surrounding environment and its strategy, structure & resources strategy, structure & resources effectively and efficiently. effectively and efficiently.

3-3-Strategic Management also, givesStrategic Management also, gives::Clearer sense of strategic vision for the Clearer sense of strategic vision for the

firm.firm.Sharper focus on what is strategically Sharper focus on what is strategically

important.important.Improved understanding of a rapidly Improved understanding of a rapidly

changing environment (IBM & Kodak changing environment (IBM & Kodak cases)cases)..

It begins by It begins by A few simple A few simple questionsquestions::

It can begin by a few simple questions:It can begin by a few simple questions:1.1. Where is the organization now ? (not where do Where is the organization now ? (not where do

we hope it is). we hope it is).

2.2. Where will the organization be in Where will the organization be in 11 yearyear ? ? 22 yearsyears ? ? 55 years years ? ? 1010 yearsyears,, … If No … If No changes are made? changes are made?

Are the answers acceptable ? Are the answers acceptable ?

3. 3. If the answers are not acceptable; what If the answers are not acceptable; what specific actions should management specific actions should management undertake ? What undertake ? What are the risks and payoffs involved ?are the risks and payoffs involved ?

Basic Model of Strategic Basic Model of Strategic Manag. Manag.

It consists of It consists of fourfour basic elements: basic elements:

1-1- Environmental Scanning (analyzing, Environmental Scanning (analyzing, monitoring and evaluating; monitoring and evaluating; SWOT SWOT analysis).analysis).

2-2- Strategy Formulation (Long range plans; Strategy Formulation (Long range plans; defining defining missionmission, specifying , specifying objectivesobjectives, , developing developing strategystrategy and setting and setting policypolicy).).

3-3- Strategy Implementation. Strategy Implementation.

4-4- Evaluation and Control. Evaluation and Control.

Environmental Scanning

Strategy Formulation

Strategy Implementation

Evaluation and Control

Basic Elements of the Strategic Management Process

Environmental Scanning

Societal Environment: General Forces

Task Environment:

Industry Analysis

External

Structure: Chain of command

Culture:Beliefs,

expectations, values

Resources:Assets, skills, competences Knowledge

Internal

Reason for Existence

Strategy Formulation

What Results to accomplish by When

Plan to achieve the mission & objectives Broad

guidelines for decision making

Mission

Objectives

Strategies

Policies

Activities needed to accomplish a plan

Strategy Implementation

Cost of the programs

Sequence of steps needed to do the job

Programs

Budgets

Procedures

Actual Results

Evaluation and Control

Performance

Strategic Management Model

1- Environmental Scanning1- Environmental Scanning

Its purpose is to identify the strategic factors Its purpose is to identify the strategic factors (internal & external) that will determine the (internal & external) that will determine the future of the corporation.future of the corporation.

The simplest way to conduct Environmental The simplest way to conduct Environmental Scanning is through Scanning is through SWOT SWOT analysis. analysis.

SWOT is an acronym used to describe those SWOT is an acronym used to describe those particular particular SStrengths, trengths, WWeaknesses (internal), eaknesses (internal), OOpportunities, and pportunities, and TThreats (external) that hreats (external) that are are Strategic Factors Strategic Factors for a specific for a specific company. company.

A-The External A-The External EnvironmentEnvironment

Consists of variables (Consists of variables (OOpportunities and pportunities and TThreats) that are outside the organization. hreats) that are outside the organization.

These variables form the context within which These variables form the context within which the corporation exists. the corporation exists.

They are the They are the General Forces and TrendsGeneral Forces and Trends within the overall within the overall Societal Environment Societal Environment (Politico-Legal, Economical, Socio-cultural (Politico-Legal, Economical, Socio-cultural and Technological; and Technological; PESTPEST Analysis) and Analysis) and Task EnvironmentTask Environment which form its which form its Industry.Industry.

B-The Internal EnvironmentB-The Internal Environment

Consists of variables (Consists of variables (SStrengths and trengths and WWeaknesses) that are within the eaknesses) that are within the organization. organization.

These variables form the context in These variables form the context in which work is done.which work is done.

They include the Corporation's They include the Corporation's 1-1-Structure,Structure,

2-2-Culture,Culture, and and

33-Resources. -Resources.

Environmental VariablesEnvironmental Variables

SocioculturalForces

Political-Legal Forces

Technological Forces

Economic Forces

SocietalEnvironment

Shareholders

Governments

Special Interest Groups

Customers

Creditors

Communities

Trade Associations

Suppliers

Employees/Labor Unions

Competitors

TaskEnvironment

(Industry)

InternalEnvironment

Structure Culture

Resources

2- Strategy Formulation2- Strategy Formulation

• ItIt is the development of long-range is the development of long-range plans for the plans for the effectiveeffective and and efficientefficient management of the External management of the External OpportunitiesOpportunities & & ThreatsThreats, in light of , in light of Internal corporate Internal corporate StrengthsStrengths & & WeaknessesWeaknesses..

How to take advantage of the How to take advantage of the OOpportunity utilizing your pportunity utilizing your SStrengths trengths while avoiding while avoiding TThreats and hreats and overcoming your overcoming your WWeakness. eakness.

2- Strategy Formulation2- Strategy Formulation

It includesIt includes: : A) Defining the corporate A) Defining the corporate Mission Mission && Vision.Vision.

B) Specifying B) Specifying achievableachievable ObjectivesObjectives,,

C) Developing C) Developing StrategiesStrategies and andD) Setting D) Setting PolicyPolicy guidelines.guidelines.

A) A) Mission Mission and Vision and Vision StatementStatement

• The MissionThe Mission answers the question answers the question "What is our "What is our business?"business?" while while The VisionThe Vision statement answers statement answers the questionthe question "What"What do we want to become?" do we want to become?"

• Developing a clear business mission and vision is Developing a clear business mission and vision is the "the "first responsibility of strategistsfirst responsibility of strategists."."

• The vision and mission statements The vision and mission statements provide provide directiondirection for all planning activities and promotes for all planning activities and promotes a a sense of shared expectationssense of shared expectations in employees and in employees and communicates a communicates a public imagepublic image to the customers. to the customers.

• They are They are essential essential for formulating, implementing, for formulating, implementing, and evaluating strategy. and evaluating strategy.

Mission and Vision Mission and Vision Statement...Statement...

• MissionMission is the most important step in is the most important step in strategy formulationstrategy formulation. .

• Mission is the Mission is the purpose or reasonpurpose or reason for the for the organization's existence. It tells what the organization's existence. It tells what the company is providing to the society either company is providing to the society either a service or a product. a service or a product.

• It It definesdefines the fundamental, unique purpose the fundamental, unique purpose that sets a company apart from the that sets a company apart from the competitors and competitors and identifiesidentifies the scope of the the scope of the company's operations.company's operations.

Mission and Vision Mission and Vision Statement…Statement…

• It may be define in a It may be define in a narrow scope narrow scope or or broad broad scopescope - - MedicalMedical Equip.Equip.//Health care Health care & & Oil & Oil & GasGas//Energy.Energy. - - RailroadRailroad//Transportation Transportation & & TelephTeleph././Communication.Communication.

• It may include the company’s value and It may include the company’s value and philosophy. philosophy.

1- Maytag:1- Maytag: To improveTo improve the quality of home life by the quality of home life by designing, building, marketing, and servicing designing, building, marketing, and servicing the best appliances in the world.the best appliances in the world.

2- Dell2- Dell:: To be the most successful computer To be the most successful computer company in the world at delivering the best company in the world at delivering the best customer experience at the market we serve.customer experience at the market we serve.

Mission Mission and Vision and Vision StatementStatement

• A good Mission statement isA good Mission statement is: :

• 1- Describes an 1- Describes an organization's purposeorganization's purpose, , customers, products or services, markets, customers, products or services, markets, philosophy & technology. philosophy & technology.

• 2- Define what the 2- Define what the organization isorganization is and what the and what the organization organization aspires to beaspires to be..

• 3- Be 3- Be limitedlimited enough to exclude some ventures enough to exclude some ventures and and broadbroad enough to allow for future activities. enough to allow for future activities.

• 4- 4- DistinguishDistinguish a given organization from all others. a given organization from all others.

• 5- Serve as a 5- Serve as a framework for evaluating framework for evaluating both both Current and Prospective Activities, and Current and Prospective Activities, and

• 6- Be stated in terms 6- Be stated in terms sufficiently clearsufficiently clear to be to be widely understood throughout the organization.widely understood throughout the organization.

B) ObjectivesB) Objectives

• Objectives are the end results of planned activityObjectives are the end results of planned activity. . They state what results to be accomplishedThey state what results to be accomplished by by when. So, it should be when. So, it should be quantified and quantified and achievableachievable

GoalGoal is an open-ended statement of what one is an open-ended statement of what one wants to accomplish with no quantification of what wants to accomplish with no quantification of what is to be achieved and no time criteria for is to be achieved and no time criteria for completion.completion.

• Objective is a quantified time framed Goal.Objective is a quantified time framed Goal.““increased profitability"increased profitability" …is a goal. …is a goal. "increase profits by 10% over last year.“ "increase profits by 10% over last year.“ …is an …is an

objectiveobjective..

Areas for goals and objectives:Areas for goals and objectives:

• Profitability (net profits).Profitability (net profits).• Efficiency (low costs, etc.).Efficiency (low costs, etc.).• Growth (increase in total assets, sales, etc.).Growth (increase in total assets, sales, etc.).• Shareholder wealth (dividends plus stock price Shareholder wealth (dividends plus stock price

appreciation).appreciation).• Utilization of resources (ROI).Utilization of resources (ROI).• Reputation (being considered a "top" firm).Reputation (being considered a "top" firm).• Contributions to employees (employment Contributions to employees (employment

security, wages).security, wages).• Contributions to society (taxes paid, charities).Contributions to society (taxes paid, charities).• Market leadership ( > 40% market share).Market leadership ( > 40% market share).• Technological leadership (innovations).Technological leadership (innovations).• Survival (avoiding bankruptcy).Survival (avoiding bankruptcy).

C) StrategiesC) Strategies

• A strategy ofA strategy of a corporation forms a a corporation forms a comprehensive master plan stating how comprehensive master plan stating how the corporation will achieve its mission the corporation will achieve its mission and objectives. It maximizes and objectives. It maximizes competitive advantage and minimizes competitive advantage and minimizes competitive disadvantage.competitive disadvantage.

• The typical business firm usually The typical business firm usually considers three types of strategy: considers three types of strategy: Corporate, Corporate, Business, and FunctionalBusiness, and Functional..

1. Corporate strategy1. Corporate strategy

• Describes a company's overall direction Describes a company's overall direction in terms of its general attitude toward in terms of its general attitude toward growth and the management of its growth and the management of its various businesses and product lines. various businesses and product lines.

• Corporate strategies typically fit within Corporate strategies typically fit within the three main categories of:the three main categories of:– GrowthGrowth,,– Stability Stability andand– Retrenchment.Retrenchment.

2. Business strategy2. Business strategy

• Occurs at the business unit or product Occurs at the business unit or product level, and it emphasizes improvement of level, and it emphasizes improvement of the competitive position of a the competitive position of a corporation's products or services in thecorporation's products or services in the specific industry or market segment specific industry or market segment served by that business unit.served by that business unit.

• Business strategies may fit within the Business strategies may fit within the two overall categories two overall categories of :of :– Competitive Competitive oror– Cooperative Strategies. Cooperative Strategies.

3. 3. Functional StrategyFunctional Strategy

• The approach taken by a functional;department The approach taken by a functional;department (Manufacturing, Market., Fina.) area to achieve (Manufacturing, Market., Fina.) area to achieve corporate and business unit objectives and corporate and business unit objectives and strategies by maximizing resource productivity. strategies by maximizing resource productivity.

• It is concerned with developing a It is concerned with developing a distinctive distinctive competencecompetence to provide a company or business to provide a company or business unitunit with a competitive advantage. with a competitive advantage.

- Examples of - Examples of R & D functionalR & D functional strategies are strategies are technological technological FollowershipFollowership (imitate the products (imitate the products of other companies) and technological of other companies) and technological LeadershipLeadership (pioneer an innovation). (pioneer an innovation).

Hierarchy of StrategyHierarchy of Strategy

Corporate Strategy

Business (Division Level)

Strategy

Functional Strategy

D) Policies:D) Policies:

• A policy is a broad guideline for decision A policy is a broad guideline for decision making that links the formulation of making that links the formulation of strategy with its implementation. strategy with its implementation.

• Companies use policies to make sure Companies use policies to make sure that employees throughout the firm that employees throughout the firm make decisions and take actions that make decisions and take actions that support the corporation's mission, support the corporation's mission, objectivesobjectives, , and strategies.and strategies.

• Polices supporting Strategies-Polices supporting Strategies-Objectives: Objectives:

Development of Policies…Development of Policies…

• Polices supporting Strategies-Polices supporting Strategies-Objectives: Objectives:

• Maytag:Maytag: will notwill not approve any cost reduction approve any cost reduction proposal, if it reduces quality.proposal, if it reduces quality.

• 3M:3M: Researchers should spend 15% of their Researchers should spend 15% of their time working on something other than their time working on something other than their primary projects.primary projects.

• GE:GE: Must be No.1 or 2 whenever it competes.Must be No.1 or 2 whenever it competes.

• Intel:Intel: Cannibalizes its own product line with Cannibalizes its own product line with better products before competitor does so.better products before competitor does so.

• ""The customer is always right The customer is always right ““

3- Strategy Implementation3- Strategy Implementation

• Strategy implementation is the Strategy implementation is the process by which strategies and process by which strategies and policies are put into action through policies are put into action through the development of: the development of: – Programs,Programs,– Budgets, Budgets, andand– Procedures.Procedures.

Programs:Programs:

• A program is aA program is a statement of the activities statement of the activities or steps needed to accomplish a single -or steps needed to accomplish a single -use plan. use plan.

•Budgets: Budgets: A budget is a statement of a corporation's A budget is a statement of a corporation's programs in terms of Money. programs in terms of Money.

Procedures:Procedures:

• Procedures:Procedures: are a system of sequential are a system of sequential steps or techniques needed to do the job steps or techniques needed to do the job or task. or task.

• It describes in details: It describes in details: How a particular task or job is to be done,How a particular task or job is to be done,By whom andBy whom andWithin a time frame; (Action Plan). Within a time frame; (Action Plan).

• Standard Operating Procedures – SOP.Standard Operating Procedures – SOP.

4- Evaluation and Control4- Evaluation and Control

• The process in which the end results The process in which the end results of corporate activities (the of corporate activities (the performance) are monitored and performance) are monitored and evaluated, so that evaluated, so that Actual Actual

performanceperformance can be compared with can be compared with Desired performanceDesired performance. .

Strategic Decision-Making Strategic Decision-Making ProcessProcess

• As organizations grow larger and more As organizations grow larger and more complex with more uncertaincomplex with more uncertain environments, decisions become environments, decisions become increasingly complicated and difficult to increasingly complicated and difficult to make.make.

• It is 8 steps process.It is 8 steps process.

Strategic Decision-Making Strategic Decision-Making ProcessProcess

1-Evaluate Current Performance1-Evaluate Current Performance A- Return on investment (ROI), profitability, … A- Return on investment (ROI), profitability, …

B- The current mission, objectives, strategies, and B- The current mission, objectives, strategies, and

policies.policies.

2-Review Corporate Governance2-Review Corporate GovernanceThe performance of the firm's board of directors and The performance of the firm's board of directors and top management.top management.

3-Scan and Assess the Ext. Environment (EFAS)3-Scan and Assess the Ext. Environment (EFAS) To determine the Ex. Strategic Factors (To determine the Ex. Strategic Factors (OOpportunities pportunities & & TThreats) by scanning Societal and Task hreats) by scanning Societal and Task Environments.Environments.

Strategic Decision-Making Strategic Decision-Making ProcessProcess4-Scan and Assess the Inter. Environment (IFAS)4-Scan and Assess the Inter. Environment (IFAS)

To determine the Internal Strategic Factors (To determine the Internal Strategic Factors (SStrengths trengths and and WWeaknesses) from scanning Structure, Culture eaknesses) from scanning Structure, Culture and Resources.and Resources.

5-Analyze Strategic Factors (SFAS)5-Analyze Strategic Factors (SFAS) • Summarize the Strategic Factors that affecting its Summarize the Strategic Factors that affecting its

current and future performance .current and future performance .• Review and revise the corporate mission and Review and revise the corporate mission and

objectives as necessary.objectives as necessary.

6-Generate, Evaluate, and Select the Best 6-Generate, Evaluate, and Select the Best Alternative StrategyAlternative Strategy

- TOWS Matrix and SPACE Matrix. - TOWS Matrix and SPACE Matrix.

Strategic Decision-Making Strategic Decision-Making ProcessProcess

7-Implement Selected Strategies7-Implement Selected Strategies Via programs, budgets, and procedures.Via programs, budgets, and procedures.

8-Evaluate and Control Implemented Strategies 8-Evaluate and Control Implemented Strategies Via feedback systems and control of activities to Via feedback systems and control of activities to ensure their minimum deviationensure their minimum deviation from plans.from plans.

This rational approach to This rational approach to Strategic Decision Strategic Decision Making ProcessMaking Process has been used successfully. has been used successfully.

It is made operational through the It is made operational through the Strategic Strategic Audit,Audit, aa complete Case Analysis Methodology. complete Case Analysis Methodology.

Environmental Scanning and Strategy Formulation:

Steps 1-6

StrategyImplementation:

Step 7

EvaluationAnd Control:

Step 8

Evaluate Current PerformanceResult

1(a)

Examine and evaluate the current:MissionObjectivesStrategies Policies

1(b)

Review Corporate Governance:Board of DirectorsTop Man-agement

2

Scan and Asses External Environment:SocietalTask

Analyze External Factors:Opportun-itiesThreats

3(a) 3(b)

Review and Revise as Necessary:MissionObjectives

Select Strategic Factors (SOWT) in Light of Current Situation

5(a) 5(b)

Scan and Assess Internal Environment:Structure CultureResources

Analyze Internal Factors:StrengthsWeaknesses

4(b)4(a)

Generate and Evaluate Strategic Alternatives

Select and Recommend Best Alternative

6(a) 6(b)

Implement Strategies: Programs.Budgets.Procedures.

7

Evaluate and Control.

8

Strategic Decision-Making Strategic Decision-Making ProcessProcess

Thank YouThank You

Decision Making Decision Making ProcessProcess

Identify the Objective, Target,

Problem

Identify the possible

Alternative Solutions

Select the best Alternative

Consider Input

constrains

Consider Outside

constrains

Implement the Decision