Strategic management
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14-10-2010, 03:42 PM


Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer (CEO) and executive team.
It provides overall direction to the whole enterprise. An organization’s strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the companies' strategic advantages to the business environment the organization faces.
One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organization’s goals, policies, and action sequences (tactics) into a cohesive whole.

Functional-level strategies are concerned with coordinating the functional areas of the organization (marketing, finance, human resources, production, research and development, etc.) so that each functional area upholds and contributes to individual business-level strategies and the overall corporate-level strategy. This involves coordinating the various functions and operations needed to design, manufacturer, deliver, and support the product or service of each business within the corporate portfolio. Functional strategies are primarily concerned with:
• Efficiently utilizing specialists within the functional area.
• Integrating activities within the functional area (e.g., coordinating advertising, promotion, and marketing research in marketing; or purchasing, inventory control, and shipping in production/operations).
• Assuring that functional strategies mesh with business-level strategies and the overall corporate-level strategy.
Functional strategies are frequently concerned with appropriate timing. For example, advertising for a new product could be expected to begin sixty days prior to shipment of the first product. Production could then start thirty days before shipping begins. Raw materials, for instance, may require that orders are placed at least two weeks before production is to start. Thus, functional strategies have a shorter time orientation than either business-level or corporate-level strategies. Accountability is also easiest to establish with functional strategies because results of actions occur sooner and are more easily attributed to the function than is possible at other levels of strategy. Lower-level managers are most directly involved with the implementation of functional strategies.
Strategies for an organization may be categorized by the level of the organization addressed by the strategy. Corporate-level strategies involve top management and address issues of concern to the entire organization. Business-level strategies deal with major business units or divisions of the corporate portfolio. Business-level strategies are generally developed by upper and middle-level managers and are intended to help the organization achieve its corporate strategies. Functional strategies address problems commonly faced by lower-level managers and deal with strategies for the major organizational functions (e.g., marketing, finance, production) considered relevant for achieving the business strategies and supporting the corporate-level strategy. Market definition is thus the domain of corporate-level strategy, market navigation the domain of business-level strategy, and support of business and corporate-level strategy by individual, but integrated, functional level strategie
• superior efficiency
• superior quality
• superior customer responsiveness
• superior innovation
• two factors determine a firm’s profit rate
• the value customers place on firm offering
• the costs of producing & delivering those offerings
• difference between costs of inputs and value of output
• productivity measures output per employee
• superior value creation
• either enjoy the lowest cost structure in the indusry
• 4sS: scale, scope, specialization, & speed
• other advantages?
• or create the most valuable product in eyes of customers
• the gap between perceived value and costs of production
• quality products are goods & services that are reliable
• do well what they are designed to do
• quality can result in
o greater efficiency
o productivity
o brand-name value
o customer loyalty
o higher retained value
• quality of firm offerings plus superior customer response time
• ability to develop new offerings
• ability to customize existing offerings to ever smaller customer segments (while main- taining efficiency & quality)
• anything new and novel in the way companies operate
• product & process innovations
• advances in product design, form factor, mfg, distrib & mktg processes, management systems, organizational structures, coop&collaborate
• extent to which superior efficiency, quality, customer satisfaction & innovation may be copied and duplicated
• barriers to imitation
• capability to imitate
o absorptive capacity
• industry dynamism
• are organizational
• usually depend on continuous improvement & learning organizational flexibility & adaptability are key to long term success
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Internal origins
Strengths: attributes of the organization that are helpful to achieving the objective.
Weaknesses: attributes of the organization that are harmful to achieving the objective.
External origins
Opportunities: external conditions that are helpful to achieving the objective.
Threats: external conditions which could do damage to the business's performance.

Key words: Strategic Management, Project planning, Quality and Risk management.


The University of Salford is a very disciplinary premier school. Performing a future view, they found that they require strategic expansion of the school to accommodate. So, they initialized to utilize the site of old police station to rebuild. Here, they indicated that manufactured construction will be the technique used for constructing this building. In any manufactured construction project and implimentation there are two major players; the builder and the manufacturer. We have to play the role of the strategic project and implimentation planner for any one of the two players mentioned above.


In this manufactured construction project and implimentation, am choosing Strategic planner of builder from this two planners. Builder plays a vital role in any construction project and implimentation. For example, He must look after planning of the building, control of resources, Schedules and other performance indicators.
Determining exact conditions of the project and implimentation to complete.
Making an inventory of all the work, which needs to do within estimated time.
Identify the resources needed to complete.
Make a decision whether this initial plan makes sense, i.e.
whether the costs justify the benefits. Modify the objectives
and the supporting work as necessary.
Define dependencies among tasks.
Calculate the minimum time of project and implimentation. Create a project and implimentation schedule
(e.g. in the form of a Gantt chart).
Planning for risk management and modify the project and implimentation plan accordingly.
Commit the organization to starting the project and implimentation implementation.
Key words: Strategic management, Project planning, Quality and Risk management.

Quality and Risk management

Risk Management:
Risk management is the discipline of identifying, monitoring and limiting risks. (Roger Williams and Boudewijn Bertsch)
This generic system has five main phases:
(1) Policy – a statement of intent for risk management. It states why risk
management is being carried out and what success will look like.
(2) Planning – outlines the strategy for achieving that success.
(3) Implementation – all the activities for managing risks set out in the plan.
“Control mechanisms” encompasses a wide range of activities, including
(4) Monitoring – the monitoring of the system, so that the review phase is based on
(5) Review – reviews the entire system to draw out learning points, and drives
continuous improvement.
Quality Management:
The systematic use of organization-wide processes to identify, assess, manage, and monitor risks – such that aggregated information can be used to protect, release, and create value.

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20-07-2012, 04:46 PM


.ppt   23455419-STRATEGIC-MANAGEMENT-6.ppt (Size: 5.96 MB / Downloads: 34)
Challenge of Strategic Management

Only 16 of the 100 largest U.S. companies at the start of the 20th century are still identifiable today!
In a recent year, 44,367 businesses filed for bankruptcy and many more U.S. businesses failed
Competitive success is transient...unless care is taken to preserve competitive position.


Managing Competition
Aggressive Marketing – Market Share – Go Global
Superior Quality of Products / Services
Cost Reduction / Lowering Prices
Faster Deliveries / Response Time
Innovations / Productivity Improvements
Developing Leadership Skills for Vision and Change.
To focus on People besides Products, Process, Profits. Today, every person is a Profit Center.
Using IT based tsunami of information, ideas and tools for managing the business – E Business
Making ours a Learning Organization


STRATEGY: It is Unified, Comprehensive, and Integrated long term plan that relates to the strategic advantages of the firm to the challenges of the environment.
STRATEGIC MANAGEMENT: It is a stream of decisions and actions which leads to the development of an effective strategy to help achieve the corporate objective. It is a continuous, iterative, & Cross functional process of matching firm with its environment.
COMPETITIVE ADVANTAGE: is delivering superior value advantage to your target customers relative to your competitors. Or delivering equivalent customer value to your target customers relative to your competitors , but at a lower cost.


VISION: It is a vividly descriptive image of what you what to be or what you want to be known for. Vision is an art for seeing invisibles.

MISSION : It a statement of intent of “what a firm wants to create and through which line of Business”. It is a process of legitimization of corporate existence of business. It defines the culture, philosophy and grand design of the firm. To pursue the Creation of Value to all Stakeholders in the Business. It is an answer to question – “What business are we in?”
GOALS / OBJECTIVES : End to be achieved. It is
To make Profit for today and forever
To satisfy Customers today and forever
To satisfy Employees today and forever


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