Feedback: Encourage students to provide honest feedback through comments.
Unit 1: Strategic Management
Meaning and Nature
Strategic Management is a modern concept crucial in the 21st century.
Evolves from management and administration concepts.
Definition
Strategic management involves planning, coordination, control, and fulfilling objectives with a focus on best practices.
Key Differences between Planning and Strategy
Planning: Multiple options (A, B, C, etc.).
Strategy: The selection of the best plan among the available options.
Advantages and Disadvantages of Strategy
Advantages:
Enables flexibility and choice of optimal paths.
Applicable in various scenarios (military and business contexts).
Disadvantages: Requires thorough analysis before selection, which may be time-consuming.
Sustainable Advantage
Defined as a strategy that maintains a competitive edge over time, akin to a 'diamond' that lasts.
Sustainable advantage is essential for ongoing growth; factors include proper resource utilization and cost-cutting strategies.
Theories of Strategic Management
Some important theories to focus on include:
SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats.
PESTLE Analysis: Political, Economic, Social, Technological, Environmental, and Legal factors.
Balanced Scorecard: Maps cause-and-effect relationships for activities to assess impacts on various parameters.
Strategy Map: An organization of activities and prioritizing which tasks to accomplish first.
Current Trends in Corporate Governance
Defined as the system of rules and processes by which companies are directed and controlled.
Essential roles include setting vision and mission statements, and ensuring regulations are followed.
Increasing focus on Corporate Social Responsibility (CSR) as a means to enhance transparency and accountability.
Important Concepts in Strategic Management
Value Chain Analysis: Analyzes the components that add value to a company's offerings.
Strategic Decision-Making Process: Steps include identifying problems, processing information, analyzing options, isolating choices, and implementation.
Corporate Governance Trends: Emphasizes developing strong relationships with stakeholders and incorporating CSR activities to align profits with social accountability.
Feedback and Conclusion
Invite students to provide feedback on the clarity of topics discussed.
Emphasize the importance of strategic management understanding for academic and practical applications.
Important Points Summary:
Strategic Management focuses on optimizing planning and execution for achieving long-term objectives.
Sustainable Advantage ensures that a company's competitive edge remains over time, crucial for growth.
SWOT and PESTLE analyses are foundational tools in strategic management for understanding internal and external environments.
Corporate Governance includes policies that guide decision-making at all levels within a company.
Feedback is vital for improving teaching methods and understanding student needs.