Strategic Management Lecture Notes

Overview

• Strategic management covers the planning, monitoring, analysis, and assessment of organizational necessities to achieve goals.
• It requires understanding the organization's mission, vision, and guiding purposes.
• Involves strategic planning for short-term and long-term objectives.

Strategic Management Process

Key Phases

1. Goal Setting

   • Begin with short-term goals as a blueprint for long-term objectives.
   • Assign roles and duties to motivate team members.

2. Gathering Information and Analyzing

   • Collect data from within the organization and market.
   • Identify internal challenges affecting operations.

3. Strategy Forming

   • Utilize collected data to create a unique strategy that meets organizational needs.
   • Control asset purchases and recruitment based on resource capabilities.

4. Implement the Strategy

   • Employees must clearly understand the plan and organizational goals for effective implementation.

5. Monitoring

   • Analyze, manage, track, and evaluate the strategic management plan.
   • Compare desired outcomes with actual outcomes and adjust plans if necessary.

Types of Strategic Management

1. SWOT Analysis

   • Evaluates internal strengths and weaknesses and external opportunities and threats.
   • Helps leaders determine the resources needed for success in a competitive environment.

2. Balanced Scorecard

   • Breaks down performance evaluation into four areas: learning and growth, business processes, customer perspectives, and financial data.
   • Aids in identifying areas needing improvement and provides timely reporting.

Advantages of Strategic Management

1. Discharges Board Responsibility

   • Relieves the board of directors from comprehensive oversight.

2. Provides a Framework for Decision Making

   • Establishes a cohesive framework for operational decisions across the organization.

3. Enables Measurement of Progress

   • Allows organizations to assess their success through established measures and objectives.

4. Provides Organizational Perspective

   • Looks at the organization as a whole, promoting a strategy beneficial to all components.

Disadvantages of Strategic Management

1. Anticipates Future Environment

   • Requires foresight which can lead to failure if the future deviates from expectations.

2. It is Expensive

   • Especially challenging for non-profits that may lack resources for external consulting.

3. Complex Process

   • Involves numerous factors, making it time-consuming and requiring management endurance.

Conclusion

• Strategic management is essential for guiding organizations toward achieving their goals while acknowledging its complexities and potential drawbacks.

Additional Resources

• For detailed reading or PDF download, refer to the link in the description.
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