Strategic Management

Mahal Arce Lebanan

Strategic Manageme

ntCreating Competitive Advantages

Definition

Strategic management consists of the analysis,

decisions, and actions an organization undertakes in order to create and sustain

competitive advantages.

Strategic management : A process

AnalysisDecision-makingAction taking

Strategic Management : Creating Competitive Advantage

The essence of strategic management is the study of why some firms outperform

others

Aims to answer the two fundamental questions:

1. How should we compete in order to create competitive advantages in the

marketplace?

2. How can we create competitive advantages in the marketplace that

are not only unique and valuable but also difficult for competitors to copy or substitute?

Key Attributes of Strategic Mgt. Directs the organization toward

overall goals and objectives.

Involves the inclusion of multiple stakeholders in decision making.

Needs to incorporate short-term and long-term perspectives.

Recognizes tradeoffs between efficiency and effectiveness.

Strategic Management ProcessStrategic Management Process is made up of four elements.

Performed in strict orderA continuous process

Situation AnalysisStrategy FormulationStrategy ImplementationStrategy Evaluation

Strategic Management Process

Environmental Scanning Internal Environment

Human resource interaction Within the business organization

Strategic Management Process

Situation Analysis

External Environment Customer Competitors Suppliers Creditors

Designing and developing the company strategy.

Organizational Levels of Strategy formulation Operational Strategies Competitive Strategies Corporate Strategies

Strategic Management Process

Strategy Formulation

Putting the strategy to practice Includes developing steps, methods,

and procedures to execute the strategy.

Strategic Management Process

Strategy Implementation

Makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives.

Strategic Management Process

Strategy Evaluation

Situation AnalysisStrategy FormulationStrategy ImplementationStrategy Evaluation

Strategic Management Process

Strategic Management Process

Corporate Governance and

Stakeholder Management Corporate governance intends to

achieve goals and objectives considering that stakeholder management is so critical in the process.

Symbiosis have to be established

Definitions

Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.

Corporate Governance

How do the company is being operated

Stakeholder management is the process of managing the expectation of anyone that has an interest in a project or will be effected by its deliverables or outputs.

Definitions

Stakeholder Management