Characteristics of strategic management ppt. Characteristics of Strategic Information Management 2019-02-09

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Strategic Management Process and Its Different Stages

characteristics of strategic management ppt

Part of the reason was that by licensing certain technology to the competition, the company had given away a raw-material cost advantage that it could not match with its own, older plants. Characteristics Cost leadership, differentiation, goals or objectives and risk management are a few basic business strategy characteristics. Corporate strategies provide direction when the company enters new economic markets. As a result, the company found itself unable to bid on that business—which accounted for a full quarter of electric utility capital spending. Administrative decisions are routine decisions that assist or rather facilitate strategic decisions or operational decisions. Gathering requirements that are accurate and measurable is key.

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Strategic Management Process and Its Different Stages

characteristics of strategic management ppt

The final stage of the strategic management process is the strategy evaluation. Misconceptions The characteristics of business-level strategies are by no means set in stone. The number of products and markets served, the degree of technological sophistication required, and the complex economic systems involved far exceed the intellectual grasp of any one manager. These are related to production. The concept of strategic management described in this article differs somewhat from that of H. International business, new manufacturing process technology, the value of our products to customers, and alternative channels of distribution have all been used successfully. At the same time, it is radically upgrading its research and development capabilities, adding computer-aided engineering, software development, and systems engineering support.

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Strategic Decisions

characteristics of strategic management ppt

Operational decisions are technical decisions which help execution of strategic decisions. Changes to the business environment can also change the characteristics of business-level strategies. Sometimes the chosen decision may be a compromising decision, lacking clarity or direction. When sales in one of its major product lines declined swiftly following the introduction of a new, cheaper competitive product, it decided to find out the reason. It forces management to confront the long-term implications of decisions and to give thought to the potential business impact of discernible current trends, well before the effects are visible in current income statements.

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Strategic Management Process and Its Different Stages

characteristics of strategic management ppt

A strategic plan is only as useful as the quality of information that goes into it. In other situations, strategy may dictate a concerted thrust by several business units to meet the needs of a shared customer group, such as selling to the automotive industry or building a corporate position in Brazil. Above all, strategy is an expensive process both in terms of money and managerial time. Setting Long-term Quantitative Objectives or Goals: The results expected from pursuing certain strategies. Normally, the way people define their business has been termed by a marketing scholar as marketing myopia. A retailer selling kids wear also starts selling lady wears is a case of related concentric diversification. Another strategy, derived from an external perspective, was devised by a U.

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Characteristics of Strategic Information Management

characteristics of strategic management ppt

The quintessence of strategic management is the efficient use of organizational resources or strengths to take advantage of the environmental opportunities and to combat the environmental threats. Otherwise, critical business decisions can slip between the cracks, and the corporation as a whole may find itself unable to capitalize on its strategic opportunities. Always define your business on the basis of core need being fulfilled. Deals with many things Narrow focus Time horizon Longer period Shorter period Timing of action Prelude to action During the action Type of guidance General guidance to whole organisation Specific and situational guidance to specific section of organisation From the above- table it should not be concluded that they are exclusive from each other. These are medium-period based decisions. Strategic decisions are taken in Accordance with organizational mission and vision.

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The Main Characteristics of Business Level Strategies

characteristics of strategic management ppt

Prior Bad Experience and Fire-Fighting: If the managers had a previous bad experience with strategy, as the plans have been long, cumbersome, impractical, or inflexible or if presently it is so engrossed with the crisis management and fire-fighting that it has no time for strategy formulation any more. Innovative design approaches have since enabled the manufacturer to increase volume substantially while halving the number of workers in its assembly plant. Companies in Phase I often display powerful business strategies, but they are rarely formalized. The goals and objectives of an organization are established through strategic decisions. Corporate strategies are decided by the top management, Business Unit level strategies by the top people of individual strategic business units, and the functional strategies are decided by the functional heads. Types of Strategies: In the last chapter we have already mentioned about corporate, strategic Business Unit strategies, and functional Strategies.


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What is Strategic Business Unit (SBU)? definition and structure

characteristics of strategic management ppt

The definition of a strategic planning framework is, therefore, a pivotal responsibility of top management, supported by the corporate planning staff. Where future is unknown such an analysis is impossible. Because the selection of a framework for planning will tend to influence the range of alternatives proposed, few strategic planning choices are more important. Cost leadership allows business owners to produce consumer goods or services at the lowest cost in an industry. Shared resource planning—To achieve economies of scale or to avoid the problem of sub-critical mass e. We looked for common patterns in the development of planning systems over time. As environment itself is subject to fast change, the strategy too has to be dynamic to move in accordance to the environment.


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Characteristics of Strategic Management

characteristics of strategic management ppt

It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. What are the Characteristics of Strategic Decisions in an Organization? The manufacturer trained the sales force to service those distributors who continued to carry the line and revised prices to pick up competitive distribution through master distributor arrangements. The team members discovered that design improvements had given the competitor such a commanding advantage in production cost that there was no point in trying to compete on price. Through a process of curiosity, inquiry and knowledge transfer — top-down, bottom-up and lateral — managers learn to understand the actions that further the organizational mission, as well as those actions that detract from the organization's values and principles. Business Unit strategies are decided by heads of business units and functional plans by functional heads.

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Strategic Management 1

characteristics of strategic management ppt

User-specific controls can also be set, in case employees need access to certain information but management wants to limit their access to sensitive data. In retrospect, one chairman confided that he had overestimated the value of confidentiality. Components of Strategic Management Process is an ongoing process. Concept of Strategy Formulation : Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. Risks Some of the risks involved with strategic information management systems include implementation challenges, incompatibility with client databases and human error. Business owners can implement new business-level strategies to create distinct competitive advantages.

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