1

UNIT 3:THE STRATEGIC

MANAGEMENT PROCESS

THE STRATEGIC MANAGEMENT PROCESS

• The formulation and implementation of strategies to achieve corporate success.

– The Strategy Position• The environment• Strategic capability• Expectations and purposes

– Strategic choices• Corporate, business, functional, international• Development directions and methods

2

3

– Strategy into action

• Organizing • Enabling• Managing change

• The development and implementation of strategy to achieve corporate success.

• The analysis, decisions and actions an organization carries out to achieve sustainable competitive advantage.

4

• Strategic management is about organizational performance.

- Why do some companies do better than others?

- How can we create sustainable competitive advantage?

5

• Strategic management encompasses both strategy and operations.

– Efficiency and effectiveness

– Short term and long term

6

• Sustainable competitive advantage cannot be achieved through operational effectiveness alone (Porter, M.)

– Operational effectiveness means doing similar activities better than rivals.

– Strategy is about being different from rivals.

– Sustainable competitive advantage comes about by performing different activities from rivals or performing similar activities in different ways.

7