STRAMA

Sun Tzu

Chinese military strategist, is known for his timeless principles in "The Art of War," emphasizing the importance of understanding the environment and adapting strategies accordingly. Example: concept of "knowing yourself and knowing your enemy" is often applied in business to emphasize the importance of understanding both internal capabilities and external competition.

Strategy implementation:

Concerned with making decision with regard to: a. Organizational structure developing to achieve the strategy. b. Effectively performing the activities necessary to accomplish the strategy. c. Monitoring the effectiveness of the strategy in achieving the organization objectives.

Economic forces

"The strategic challenge of the next decade is navigating a world that is simultaneously integrating and fragmenting. Stock markets have set new records and economic volatility has fallen to historic lows, while political shocks on a scale unseen for generations have taken place. Seemingly contradictory realities do co-exist."7 Overall, while economic data indicates that globalization has had a positive effect on the world economy, a dark side also shows that two-thirds of all households in 25 advanced-economy countries had incomes stagnate and/or decline between 2005 and 2014. Moreover, the U.K. and U.S. witnessed falling wages. Wealth distribution in these countries continues to decline. Income inequality globally is also rising.

Peter Drucker

, a management theorist, emphasized the importance of innovation and effective leadership in strategic management. Example: Apple's success under Steve Jobs reflects HIS principles, with a focus on innovation, customer-centricity, and simplicity.

MACRO AND MICRO

2 TYPES OF EXTERNAL ENVIRONM

IDENTIFICATION OF STRENGTH " WAEKNESSES "OPPORTUNITIES " THREATS OPTIMUM USE OF RESOURCES SURVIVAL AND GROWTH 7. To plan long-term business strategy: 8. Environmental scanning aids decision-making:

8 Important Needs and Importance of Environmental Scanning

Thompson, "Mission statement

AUTHOR? defines what business the company presently in and conveys the essence of „who are we, what we do and where we are now? It provides a basis for long term course; make a choice about where we are going." an organization proves its existence and authenticity in society.

Competitor Intelligence, Michael Porter

AUTHOR? to develop a profile of the nature and success of the likely strategy changes each competitor might make, each competitor's probable response to the range of feasible strategic moves other firms could initiate and each competitor's probable reaction to the array of industry changes and broader environmental shifts that might occur." s therefore focused on the actions, behaviors and options of one or more existing or potential competitors.

1. Strategic decisions are for the future. 2. Strategic decisions have multifunctional and multi business effects. 3. It helps in environment scanning. 4. Helps in carrying out corporate appraisal. 5. It provides relevant data essential for taking decisions

Advantages/Merits/Benefits of Strategic management 5 SSHII

1. It is complex process. 2. It is cumbersome and complicated exercise. 3. It requires a high level of imagination, analytical ability, courage, foresight 4. It is a costly exercise. 5. It involves a lot of time

Disadvantages/drawbacks of the strategic management 5

Allocate Resources Communication and Training: New Product Development: Digital Marketing Performance Metrics: Key performance indicators (KPIs) Feedback and Adaptation

Example of Strategy Implementation The marketing team launches targeted online campaigns to increase the company's visibility and attract more customers to the online platform. are established to measure the success of the strategy, such as online sales growth, customer satisfaction, and the number of new products introduced. Regular feedback from customers and performance metrics are used to make adjustments to the strategy if needed, ensuring ongoing relevance and effectiveness.

GOVERNMENT LEGISLATION LOCAL REG INTERNATIONAL LAW WAR TAXES TRADE UNION ACTS GLOBALIZATION COMPRTION AND

ILLUSTRATION OF MACRO FORCES ENVIRONMENT P/G- GLIWTT E- GCCEL T- INH S-GADAWEL N-WHEP

A mission statement i

Is a declaration of the fundamental purpose and values of an organization, guiding decision-making and providing a sense of identity.

Organizational Intelligence

Is the capability of an organization to comprehend and create knowledge relevant to its purpose. In other words, it is the intellectual capacity of the entire organization.

Strategic Information

It consist of facts ad data used by organization to assist them in achieving their goals, mission and vision. • It can be Primary or Secondary information:

Scanning the Environment

It is the study and interpretation of the forces existing in the external and internal environments. It includes Social, Economic, Political, Technological and environmental forces that may influence the organization, industry or entity.

PESTL

MACRO 5

SUPPLIERS CUSTOMER MARKETING INTERMEDIARIES FINANCIER PUBLIC

MICRO INCLUDES 5

GREATEST STRATEGIST

One compelling success story of a great strategist is the turnaround of Apple Inc. under the leadership of Steve Jobs. In the late 1990s, Apple was facing financial troubles and struggled to find its footing in the highly competitive technology market. Jobs, who co-founded Apple in the 1970s but was ousted in 1985, returned to the company in 1997 when Apple acquired his startup, NeXT. Upon his return, Jobs implemented a series of strategic moves that revitalized Apple and transformed it into one of the most successful and influential companies in the world. Here are key elements of his strategic approach: Focus on Innovation: Jobs believed in creating groundbreaking products. Under his leadership, Apple introduced a series of revolutionary products such as the iMac, iPod, iPhone, and iPad, each setting new industry standards and driving immense consumer interest. Simplicity and Design: Jobs was a proponent of simplicity and elegant design. He emphasized creating products that were not only technologically advanced but also aesthetically pleasing and user-friendly. This design philosophy became a hallmark of Apple's success. Vertical Integration: Jobs reshaped Apple's supply chain by implementing vertical integration, bringing key components of production in-house. This allowed Apple to have greater control over the entire manufacturing process and maintain high-quality standards. Ecosystem Strategy: Jobs understood the importance of creating a seamless ecosystem of products and services. The integration of hardware, software, and services like iTunes and the App Store created a powerful and cohesive user experience that encouraged brand loyalty. Marketing and Branding: Apple's marketing strategy, led by Jobs, was masterful. He knew how to create anticipation and excitement around product launches, turning each unve

EXTERNAL ENVIRONMENT

REFERS TO ENVIRONMENT THAT HAS INDIRECT INFLUENCE ON THE BUSINESS

1. It gives direction to business. 2. It gives sense of identity and unity towards business objectives. 3. It helps an organization in achieving its goals in an efficient and effective manner. 4. It helps in getting rid of the threats or else neutralizes them. 5. It enables organization to grasp every opportunity that is available in the market. 6. Strategic management decisions are usually made in a rational and in a logical manner. 7. It helps in forecasting.

Role of Strategic Management in business organization

SWOT MATRIX ANALYSI

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business. is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future.

The first one is Looking at or simply VIEWING and second one is looking for or SEARCHING

Scanning of environment involves two processes, 4 MOSES OF ENVIRONMENTAL SCANNING

1. It is pervasive, integrated and coordinated management process. 2. It is concerned with ends as well as means. 3. It is resources planning. 4. It takes into process the environment, market conditions and activities of competitors. 5. It is adopted only in specific situation or unfavourable situations. 6. It is basically a top management function. 7. It is an effective organizational response and initiative system. 8. It is based on corporate objectives. 9. It is based on long term mission of the organization.

Some Features/Characteristics of Strategic Management

1. It includes Strategy, Concepts, Characteristics, functions. 2. It includes corporate strategy, business level strategy, functional level strategy and operating level strategy. 3. It includes strategic management nature, scope, characteristics, process, and components. 4. It includes various kinds of environment such as:- Micro, Macro, Internal, External, political, social, cultural, technological, legal, competitive environment. 5. It includes stability strategy, expansion strategy, retrenchment strategy, combination strategy. 6. Strategic Audit and managing technology. 7. Corporate culture 8. Leadership 9. Culture guiding 10. Evaluating strategy 11. Training strategy 12. Strategic change management 13. Integration.

Some scope of strategic management

Informal Search

The individual actively looks for information to increase knowledge of a particular issue. It essentially involves unstructured effort to gather information.

Undirected Viewing

The individual exposed to information with no specific informational needed in mind. Wide ranging and large chunks of information quickly dropped from the individual attention.

Formal Search

These kind of search relatively focused on market analysis, market studies, competitor and customer analyses. The individual actively looks for information to increase knowledge of a particular issue. It essentially involves unstructured effort to gather information. Formal Search These kind of search relatively focused on market analysis, market studies, competitor and customer analyses.

THE EXTERNAL ENVIRONMENT

To succeed and thrive, organizations must adapt, exploit, and fit with the forces in their external environments. Organizations are groups of people deliberately formed together to serve a purpose through structured and coordinated goals and plans. As such, organizations operate in different external environments and are organized and structured internally to meet both external and internal demands and opportunities. Different

External Factors

What happens outside of the company is equally as important to the success of a company as internal factors. External monetary policies, market changes, and access to suppliers, are categories to pull from to create a list of opportunities and weaknesses.1 Business News Daily. "SWOT Analysis: What It Is and When to Use It." Potential questions to list external factors are: (Opportunity) What trends are evident in the marketplace? (Opportunity) What demographics are we not targeting? (Threat) How many competitors exist, and what is their market share? (Threat) Are there new regulations that potentially could harm our operations or products?

Internal Factors

What occurs within the company serves as a great source of information for the strengths and weaknesses categories of the SWOT analysis. Examples include financial and human resources, tangible and intangible (brand name) assets, and operational efficiencies. Potential questions (Strength) What are we doing well? (Strength) What is our strongest asset? (Weakness) What are our detractors? (Weakness) What are our lowest-performing product lines?

]Michael Porter,

a renowned strategy scholar, introduced the concept of competitive advantage, stating that organizations should choose a unique position in the market and make clear trade-offs to achieve excellence.

Government and political forces

also affect industries and organizations. Recent events that have jarred the global economy—and are too early to predict the long-term outcomes of—are the United Kingdom's exit from the European Union, wars in the Middle East, policies that question and disrupt free trade, health-care reform, and immigration—all of which increase uncertainty for businesses while creating opportunities for some industries and instability in others.

Primary data secondary

are Gathered through personal experience, observation and experimentation while secondary information are data collected from reports, internet sources, and other published materials.

Technological forces

are another ubiquitous environmental influence on organizations. Speed, price, service, and quality of products and services are dimensions of organizations' competitive advantage in this era. Information technologies and social media powered by the Internet and used by sharing-economy companies such as Airbnb and Uber have democratized and increased, if not leveled, competition across several industries, such as taxis, real estate rentals, and hospitality services. Companies across industry sectors cannot survive without using the Internet, social media, and sophisticated software in R&D (research and development), operations, marketing, finance, and sales. To manage and use big data in all these functional areas, organizations rely on technology.

GOAL OBJECTIVES

are broad, qualitative statements of what an organization aims to achieve are specific, measurable targets supporting the realization of goals. represent the overarching aims of an organization, are concrete, quantifiable steps that contribute to the accomplishment of goals.

Primary Information ✔ Secondary Information

are gathered through personal experiences and observation are data collected in research, reports and internet sources.

Organizational goals

are general targets that executives set for the company. They guide employee input and define the expected output. outline these objectives, targets, and results they want to achieve in a given period. They guide operations and inform business decisions over time.

Values

are the enduring beliefs that shape behavior and decision-making within an organization, forming the basis of its culture and identity.

Values

are the fundamental beliefs that guide an organization's actions, and a value system is the set of consistent values and measures used within the organization.

Pearce and Robinson- "Strategic Management

author? as the set of decisions and action in formulation and implementation of strategies designed to achieve the objectives of an organization

"Good Strategy Bad Strategy," Richard Rumelt strategic planning

author? book? explains _________________as creating a roadmap by identifying critical challenges, focusing resources on key areas, and defining coherent actions.

Business Intelligence Benjamin Gilad as "

author? has a similarly broad scope and has been described by Benjamin Gilad as "the activity of monitoring the environment external to the firm for information that is relevant for the decision‐making process in the company." In practice, business intelligence often concentrates on current competitors as in competitive intelligence, but may also include areas such as analysis of potential acquisitions and mergers and risk assessments for particular countries.

Ansoff‟s- "Strategic Management

author? is a systematic approach to a major and increasingly important responsibility of general management to position and relate the firm to its environment in a way which will assume it continued success and make it secure from surprise.

Stoner and Freeman- "Strategic Management

author? is distinct management process that involves an organization engaging in strategic planning and then acting on those plans".

Steiner- "Strategic Management

author? is primarily concerned with relating to the organization to its environment, formulating strategies to adapt to that environment and assuming that implementation of strategies takes place".

Andrews, "strategy

author? is the patron of objectives, purpose or goals and major policies and plan for achieving these goals, stated in such a way so as to define what business the company is in or is to be and kind of company it is or is to be.

Jauch and Glueck- "Strategic Management

author? stream of decisions and action which lead to the development of an effective strategy or strategies to help achieve corporate objectives. -process is the way in which strategists determine objectives and make strategic decisions".

Alfred Chandler :- Defined Strategy

author? the determination of the basic longterm goals and objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out there goals"

Lloyd L. Byasis has defined it as "Strategic Management

author? the process of managing the organization mission while managing the relationship of the organization to its environment"

Peter Drucker, in "Management: Tasks, Responsibilities, Practices

author? book? example compares strategic management to chess, where players anticipate moves, plan ahead, and adjust strategies based on the opponent's actions.

Fred R. Davis STAMA Concepts and Cases

author? book? example: strategic management is like steering a ship through unpredictable waters, requiring constant adjustments to reach the intended destination.

Strength WEAKNESS

business firm means capacity of the firm to gain advantage over its competitors means limitations of the firm.

Environmental Scanning

casts an even wider net and analyzes information about every sector of the external environment that can help management to plan for the organization's future. Scanning covers not only competitors, suppliers and customers, but also includes technology, economic conditions, political and regulatory environment, and social and demographic trends.

Strategic Planning

concerned with making decision in following areas: a. Organization mission determination b. Policies formulation to guide the organization in establishing objectives, choosing a strategy and implementing the chosen strategy. c. For achieving the organization's mission, setting and establishing of long term and short term objectives. d. Strategy determination for achieving the organization objectives

MICRO ENVIRONMENT FACTOR

consists of the actors in the company's immediate environment that affects the performance of the company.

Strategic information

consists of the facts and data used by organizations to assist them in achieving their vision, mission, and goals. can be drawn from both external and competitive environments. Both external and internal environments symbiotically interplay and directly and indirectly affect organizations. • is either primary or secondary.

Strengths

describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.

A SWOT analysis

examines both internal and external factors - that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not. can help you to challenge risky assumptions and to uncover dangerous blindspots about your organization's performance. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is, and help you to develop exactly the right strategy for any situation.

A vision statement

forward-looking declaration that aligns the organization's values, purpose, and long-term goals, inspiring stakeholders and creating a shared sense of purpose.

2. Conditioned Viewing T

he individual directs viewing of information to specified facts and data to be able to assess their general impact on the market. It is not an active search but a mere viewing of information

Sociocultural environmental forces

include different generations' values, beliefs, attitudes, customs and traditions, habits, and lifestyles. More specifically, other aspects of societal cultures are education, language, religion, law, politics, and social organizations. The millennial (ages 20 to 35) workforce, for example, generally seeks work that engages and interests them. Members of this generation are also health conscious and eager to learn. Since this and the newer generation (Generation Z) are adept and accustomed to using technology—social media in particular—organizations must be ready and equipped to provide wellness, interesting, and a variety of learning and work experiences to attract and retain new talent. Millennials are also estimated to be the United States' largest living adult generation in 2019. This generation numbered about 71 million compared with 74 million baby boomers (ages 52 to 70) in 2016. By 2019, an estimated 73 million millennials and 72 million boomers are projected. Because of immigration, millennials are estimated to increase until 2036.8 Other general sociocultural trends occurring in the United States and internationally that affect organizations include the following: (1) Sexual harassment at work in the era of #MeToo has pressured organizations to be more transparent about relationships between owners, bosses, and employees. Related to this trend, some surveys show new difficulties for men in workplace interactions and little effect on women's career opportunities taking place in the short term.9 (2) While fewer immigrants have been entering the United States in recent years, diversity in the U.S. workplace continues. For example, 20 million Asian Americans trace their roots to over 20 countries in East and Southeast Asia and the Indian subcontinent—"each with unique histories, cultures, language

strategic implementation

involves concrete actions such as investing in specific areas, training employees, launching new products, and closely monitoring performance. It's about turning the strategic vision into practical steps that move the organization toward its goals.

Strategic planning

involves setting priorities, making decisions, and allocating resources to achieve long-term objectives. It is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, who it serves, and why it exists.

Globalization

is a combination of external forces shaping environments of organizations. Defined as the development of an integrated global economy and characterized by free trade, capital flows, communications, and cheaper foreign labor markets, the processes underlie the forces in the general international economic environment. This dimension continues to present opportunities and pressures to companies operating locally as well as globally. continues to affect industries and companies in ways that benefit some and not others.

mission statement

is a concise expression of an organization's purpose, outlining what it does, who it serves, and how it adds value to society.

strategy

is a set of decision making rules which guides and links the human and other resources of an organization and with the challenges and risks posed by the outer world. It deals with the direction and choice that the company or business enterprise desires to follows." is a course of action through which an organization relates itself to environment to attain its objectives

Strategic Management

is a set of rules aimed at taking decisions for sustaining and growth of an organization in a given environment.

SWOT analysis

is a strategic planning technique that provides assessment tools. Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas. pulls information internal sources (strengths of weaknesses of the specific company) as well as external forces that may have uncontrollable impacts to decisions (opportunities and threats). works best when diverse groups or voices within an organization are free to provide realistic data points rather than prescribed messaging. are often synthesized to support a single objective or decision that a company is facing.

Strategic planning

is a systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives, and a sequence of steps to achieve them

organizational vision

is a vivid, inspiring, and aspirational description of what an organization intends to achieve or become in the future. It provides direction and motivation.

MACRO ENVIRONMENT

is also known as General environment and remote environment. ▸ generally more uncontrollable ► When THIS become uncontrollable, the success of company depends upon its adaptability to the environment.

MICRO ENVIRONMENT

is also known as the task environment and operating environment because the have a direct bearing on the operations of the firm. ▸are more intimately linked with the company than the macro factors.

organization's external environment,

is an inclusive concept that involves all outside factors and influences that impact the operation of a business that an organization must respond or react to in order to maintain its flow of operations. also referred to as the general environment,

: Strategic management

is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. It involves aligning the organization's internal capabilities with external opportunities.

Strategic management

is the continuous planning, monitoring, and analysis of all the necessary components for an organization to meet its goals and objectives. It involves adapting to changes in the external environment while efficiently utilizing internal resources.

Sharplin- "Strategic Management

is the formulation and implementation of plans and carrying out of activities relating to the matters which are of vital, pervasive or continuing importance to the total organization".

Organizational climate

is the prevailing atmosphere and mood within an organization at a given time, while organizational culture represents shared values, beliefs, and behaviors.

Strategic implementation

is the process of putting an organization's chosen strategy into action. It involves translating the broad objectives and plans developed during the strategic planning phase into specific actions, tasks, and initiatives. Successful implementation ensures that the organization's resources are effectively utilized, and that individuals and departments are aligned with the overall strategic direction.

D. Melvin J. Stanford defines, "Strategy

is the way in which management chooses to utilize the firm's resources within its environment to reach its objectives. Strategy thus involve multilateral relationships among the firm, its objectives and the environment".

Strategy Implementation

like executing a carefully crafted plan to achieve a long-term goal. It's not just about having a great strategy on paper; it's about making it work in the real world. This phase involves making decisions, allocating resources, and ensuring that everyone in the organization understands their role in achieving the strategic objectives.

BUSINESS ENVIRONMENT

mAY BE DEFINED AS ALL THOSE CONDITIONS AND FORCES WHICH ARE EXTERNAL TO THE BUSINESS AND ARE BEYOND TO THE INDIVIDUAL BUSINESS UNIT, BUT IT OPERATES WITHIN

Henry mintzberg strategy

pattern in a stream of decisions author?

WHAT ARE WE DOING WELL WHAT ARE OUR STRONGEST ASSET WHAT ARE OUR DETRACTORS WHAT ARE OUR LOW PERFORMING PRODUCT LINES WHAT TRENDS ARE EVIDENT IN MARKETPLACE WHAT DEMOGRAPHICS WE ARE NOT TARGETING HOW MANY COMPETITORS EXIST AND WHAT IS THEIR MARKET SHARE WHAT ARE NEW REGULATIONS THAT COULD POTENTIALLY HARM OUR OPERATIONS OR PRODUCTS

potential questions internal factors- dsdl external factors- tdcn

decision making

process of selecting the best alternative from among various available alternatives

Threats

refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply and so on.

Opportunities

refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share.

Competitive Intelligence

refers to the analysis of competitors as well as competitive conditions in particular industries or regions. The Society of Competitive Intelligence Professionals defines as "the process of monitoring the competitive environment" that "enables senior managers in companies of all sizes to make informed decisions about everything from marketing, R&D and investing tactics to long‐term business strategies."

Organizational climate

refers to the immediate and visible aspects of the work environment, whereas organizational culture is the deeper, underlying set of shared values and assumptions. Example

organizational culture

represents shared valued and beliefs is the deepest underlying set of shared values and assumptions

value system

set of consistent values and measures used within organization

Weaknesses Weaknesses

stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

Strategic planning strategy implementation.

strategic management can be broken down into two stages :

STRATEGEIA

strategy‟ is derived from the Greek word- ‟. It means „the art of the general‟.