STRATEGY
- Comes from the Greek strategos, which means “general.”
- In literal terms, it means “leader of the army.”
- A plan of action or policy designed to achieve a major or overall aim/target
- Game plan
What is Strategic Management
- The ongoing planning, monitoring, analysis and assessment of all necessities an organization
needs to meet its goals and objectives
BENEFITS
• Generally thought to have financial and nonfinancial benefits
• Helps an organization and its leadership to think about and plan for its future existence
• Sets a direction for the organization and its employees
Effective strategic management continuously plans, monitors and tests an organization’s activities,
resulting in greater operational efficiency, market share and profitability.
CONCEPTS
MISSION
- Reflects the organization’s past and present by stating why the organization exists and what role it
plays in society
VISION
- States what the organization aspires to become in the future
GOALS
- More specific aims that organizations pursue to reach their visions and missions
STRATEGIC PLANNING
- a subset of business management that involves an organization’s ability to set both short-and
long-term goals
Strategic management can, thus, help an organization gain competitive advantage, improve market share
and plan for its future.
STRATEGIC MANAGEMENT
FIVE PHASES
1. Assessing the organization’s current strategic direction;
2. Identifying and analyzing internal and external strengths and weaknesses
3. Formulating action plans;
4. Executing action plans; and
5. Evaluating to what degree action plans have been successful and making changes when desired
results are not produced