Chapter I Basic Concepts of Strategic Management Strategic Management is defined as a set of managerial decisions and actions that determine the long run performance of a corporation. Also emphasizes the monitoring and evaluation of external opportunities and threats in the light of corporation strength and weakness. The Study of Strategic Management Strategic Management Business Policy Phase of Strategic Management Phase1 Phase2 Phase3 Phase4 Basic Financial Planning Forecast-Based Planning Externally Oriented Planning Strategic Management
Benefits of Strategic Management 1. Clearer sense of strategic vision for the firm 2. Sharper focus on what is strategically important 3. Improved understanding of a rapidly changing environment Globalization and Electronic Commerce -Globalization -Impact of Electronic Commerce Theories of Organizational Adaptation -Theory of population ecology -Institution theory -Organizational learning theory Creating a learning organization -learning organization Learning organizations are skilled at the 4 main activities 1. Solving problem systematically 2. Experimenting with new approaches 3. Learning from their experiences and past history as well as from the experience of others. 4. Transferring knowledge quickly and efficiently throughout the organization Basic Model of Strategic Management Consisting of 4 Elements 1. Environment Planning 2. Strategy Formulation 3. Strategy Implementation 4. Evaluation and Control