Strategic management

- is a continuous process of strategy creation

- involves strategic processes like strategic analysis and decision making, strategy formulation and
implementation, and strategy control

 Strategic analysis consists of systematic evaluation of variables currently existing in the external and
internal environments
 Strategic decision making is deliberately bringing together the right resources for the right markets
at the right time
 Strategy formulation is designing strategies on the business and corporate levels
 Strategy implementation is employing these crafted strategies to achieve organizational set goals
and objectives
 Strategic control is the application of an appropriate monitoring and feedback system

Strategic analysis = strategic intelligence is the capability of an organization to possess relevant and
related knowledge, abilities, foresight, and systems thinking

Strategic decision making = strategic thinking is the cognitive process of competently and analytically
weighing factors and arriving at critical decisions

Strategy formulation = organizational competitiveness pertains to the ability of any business / company
to utilize its resources optimally and sustainably for maximum performance and productivity

Strategy implementation = comparative advantage refers to the ability of an organization to produce a

particular good or service at lower marginal and opportunity cost than its competitors

Strategic control = strategic performance is the accomplishment of a high level of productivity

Strategic Planning

- defined as a continuous, repetitive, and competitive process of setting the goals and objectives that a
organization aims to attain, defining the means to achieve them, and assessing the best way to realize
them

Types of Strategic Plans

 Medium/Long Range Plan – prepared in the context of the coming 3 – 5, 10 or more years. It
describes the major factors/forces that affect the organization’s long term objectives, strategies and
resources required
 Annual/Yearly Plan – short term; succinctly describes the organization’s present situation, its goals
and objectives, strategies, monitoring mechanisms, and the budget for the year ahead
Organizational Vision

- is an inspirational statement of what the organization hopes to achieve at some point in the future

- it is short and succinct, but it carries and extraordinary force that will stir, motivate, and inspire
employees to work and refocus toward its desired optimal future state

Mission Statement

- defines the current purpose of an organization; it answers what the organization does, for whom it is
done, and how it does what it does

- short and easy to remember

Organizational Goals and Objectives “all organizations have set goals”

- pursued to make the specified strategies succeed

- vary and dependent on their respective purpose and direction

Goals have the following properties:

 Goals provide organizations focus and direction

 Goals move organization to actions
 Goals develop in organizations the trait of persistence

For goals to be attained, they have to be supported by objectives. Objectives are micro and specific in
perspective. Strategic objectives are, in general, externally focused

Organizations are guided by values. Values are inherent roots of motivation within an individual, an
organization, a community, or a nation. Values are exhibited in two different ways: beliefs & attitudes

Value System

- broader in scope

- it includes other variables, such as the organization’s dreams, aspirations, interests, expectations,
philosophies as well as leadership and management styles and ethical practices

Organizational Climate and Culture – interrelated, interdependent and sequential

Organizational climate often defined as the regular and repetitive patterns of attitudes and behavior
exhibited by employees of an organization

- easier to assess and change

- lends to flexibility

- contributes to the solidification of the culture of an organization

Organizational Culture denotes a wide range of social phenomena. Culture can be understood as an
idealized system because a system focuses on types of meanings represented by values, formal rules,
knowledge, beliefs and expressive forms

Environmental Scanning is the study and interpretation of the forces existing in the external and internal
environments

Strategic Information consists of the facts and data used by organizations to assist them in achieving
their vision, mission, and goals

Modes of Environmental Scanning

 Undirected Viewing
 Conditioned Viewing
 Informal Search
 Formal Search

The SWOT Matrix Analysis is a structured assessment tool used to evaluate an organization, industry, a
place or even a person in terms of set parameters like strengths, weaknesses, opportunities, and threats

 Strengths are features that organizations possess

 Weaknesses are characteristics that place organizations at a disadvantage relative to others
 Opportunities are possibilities in the external environment that organizations can exploit to their
advantage
 Threats are challenges in the external environment that can cause problems to organizations

The External Environment presents varying forces that influence organizational direction and strategic
decision making

 Social Forces
- Changing social structures
- Aging population/demand for health services
- Sophisticated lifestyle of people
- Cross cultural diversity
 Political Forces
- Political independence/changing governments
- Terrorism/suicide bombings
- Chemical and nuclear threats
- Global alliances
 Economic Forces
- Globalization
- Competitors and suppliers
 - Fall of financially stable organizations
- Increasing oil prices
- Economic trade agreements
- Emerging markets
- Rise of china
 Technological Forces
- Communication technology
- Computer integrated business
- E-banking
- E-learning
- Digital medicine
- E-security
 Environmental Forces
- Climate change/use of biodegradable materials
- Environmental waste management
- Preservation of rainforests and marine life