Strategic Management:
Planning and Evolution
This presentation explores the fundamentals of strategic management,
its evolution, and its crucial role in organizational success. We'll delve into
the essential concepts, levels of strategy, and the key processes involved
in crafting and implementing strategic plans.
by Dr. Vikas Kumar Khare
Why Strategic Management Matters
Competitive Advantage Sustainable Growth
Strategic management helps organizations identify and A well-defined strategy provides a roadmap for sustainable
capitalize on opportunities to gain a competitive edge in the growth, ensuring that the organization's actions align with
marketplace. It allows businesses to make informed its long-term goals. This approach fosters a consistent and
decisions, optimize resources, and adapt to changing strategic direction for the business.
market conditions.
Core Concepts in Strategic
Management
Vision Mission
A clear and inspiring statement A concise statement that
of the organization's desired defines the organization's
future state, outlining its purpose and its core values,
aspirations and direction. outlining its primary business
activities.
Goals Strategies
Specific, measurable, Action plans and approaches
achievable, relevant, and time- designed to achieve
bound objectives that guide organizational goals,
the organization toward encompassing both broad
achieving its vision and corporate and specific
mission. functional strategies.
Levels of Strategic Planning
1 Corporate Strategy
2 Business Strategy
3 Functional Strategy
Strategic planning occurs at three interconnected levels, each contributing to the overall success of the organization.
Environmental Scanning and
Industry Analysis
External Analysis Internal Analysis
Examining the broader industry Assessing the organization's
landscape, including political, strengths and weaknesses,
economic, social, technological, including resources, capabilities,
environmental, and legal factors and competitive advantages.
(PESTLE) to identify opportunities
and threats.
Industry Analysis
Analyzing the competitive forces
within an industry using Porter's
Five Forces model to understand
the competitive landscape and
industry attractiveness.
Strategic Decision-Making Process
Identify and analyze the problem or opportunity
1
requiring a strategic decision.
2 Gather relevant information and data to support
informed decision-making.
Develop and evaluate potential strategic
3
alternatives and their implications.
4 Select the best strategic option based on criteria
such as feasibility, cost, and impact.
Implement the chosen strategy and monitor its
5
progress over time.
6 Evaluate the effectiveness of the implemented
strategy and make adjustments as needed.
Formulating Strategies
Corporate Strategy
Focuses on defining the overall direction of the organization,
1
including diversification, mergers, acquisitions, and
expansion into new markets.
Business Strategy
Outlines how each business unit will compete within its
2
respective industry, focusing on competitive advantage, cost
leadership, differentiation, and focus strategies.
Functional Strategy
Specifies how different functional areas within a business
3
unit, such as marketing, finance, and operations, will support
the overall business strategy.
Implementing and Executing
Strategies
1 2
Resource Allocation Organizational Structure
Prioritizing and allocating Designing an organizational
resources, including financial, structure that aligns with the
human, and technological capital, strategy, fostering accountability
to support strategic initiatives. and efficient communication.
3
Leadership and
Communication
Communicating the strategy
clearly and effectively to all
stakeholders, fostering alignment
and motivating employees to
execute it successfully.
Evaluating and Controlling Strategic Plans
Performance Measurement Financial Analysis Strategic Review
Tracking key performance indicators Analyzing financial data to evaluate the Conducting periodic reviews to assess
(KPIs) to measure the progress of effectiveness of strategic decisions and the alignment of the strategy with
strategic initiatives and identify areas assess the overall financial health of the current conditions, identify emerging
for improvement. organization. opportunities and threats, and make
necessary adjustments.
The Future of Strategic
Management
As the business landscape continues to evolve at a rapid pace, strategic
management is becoming increasingly complex and dynamic.
Organizations must embrace emerging trends, such as digital
transformation, globalization, and sustainability, and adapt their strategic
approaches to thrive in this ever-changing environment.
