Strategic Management

 Business Model
 Ultimate goal
 Joint venture, merger, takeover, acquisition
 Strategic management definition
 Strategic Management Model
 Develop strategic statement
 Establish long term objective
 Generate, evaluate, select strategy
 Implement strategy for management issues
 Implement strategy for functional issue
 Measure, evaluate performance
 Organizational structure
 Prepare budget
 Develop and utilize information system
 Linking employee compensation to the organizational performance
 Mobilize employees and management
 Strategic evaluation
 Taking corrective actions
 Measure performance
 Reviewing internal and external factors

Success today is no guarantee of success tomorrow

 Competitive advantage
 SWOT analysis
 Long term objective and short term objectives

Chapter 2

 Business Mission and Vision

 Definition/ concept
 Examples of mission and vision
 Components of mission statement
 How to build strategic statements
 Importance and benefits of mission and vision statement
 Challenges
 Stakeholders
 Internal stakeholders
 External stakeholders
 Importance of stakeholders
 AFI Model
  Analyze
 Formulate
 Implement
 Long term objectives
 Features of Long term objectives
Measurable
Achievable
Understandable
Challenging
Hierarchy
Congruent
 Benefits of Long Term Objectives
Provide directions by relevant expectations
Allows synergy
Establish Priority
Reduce Uncertainty
Minimize Conflict
Stimulate Exertion
Aid in Allocation of Resources
 Financial VS. strategical objectives
 Growth in revenue
 Growth in earnings
 Higher dividend
 Larger profit margin
 Greater Return on Investment
 Earnings per share
 Rising stock price
 Improved cashflows
 Level of strategy in large companies
 Types of strategy
 Vertical Integration
Horizontal integration
Forward integration
Backwards integration
 Intensive strategy
Product development
Market penetration
Market development
 Diversification strategy
Related diversification
Unrelated diversification
  Defensive strategy
Liquidation
Retrenchment
 Poter’s five forces model
 Cost leadership strategy