ezzk-management-2023-vsem-ing
1. Strategic Management as a Response to Business Environment Development
Strategic management is a dynamic and evolving discipline that arose in response to new market economy characteristics.
Business strategy is the path to achieve strategic corporate goals.
Strategy: a method to fulfill the mission and long-term goals.
Tactics: operational measures undertaken to achieve these goals.
Strategic management: the steps necessary to achieve strategic objectives.
It requires formulating, implementing, and evaluating decisions throughout all functional areas to support goal achievement.
History and Development
Strategic management first appeared in the 1950s as a response to changing market conditions.
In the 1960s-70s, strategic planning began considering environmental influences (e.g., energy crises).
By the late 1970s, companies began retrospective evaluations of strategies.
In the 1990s, strategic management took its modern form with companies adapting to complex and dynamic strategies.
2. Stages of Development
Stage 1945 - 1960: Economic recovery; focus on supply efficiency.
Stage 1960 - 1973: Market growth; efficiency in production; introduction of financial flow planning.
Stage 1973 - 1980: Response to the oil crisis; increased focus on price and quality.
Stage 1980 - 1995: Increased competition; adaptation and production flexibility.
Stage 1995 - Present: Hyperglobalization; customer demand for uniqueness.
3. Strategic Management Process Model
The model outlines organizational steps used to attain goals and is a continuous process.
If objectives aren't met, return to previous steps for revisions.
Key Steps:
Definition of business purpose and mission.
Formulation of business objectives (SMART criteria).
Strategy formulation:
Analysis of external and internal environments.
Strategy options and selection.
Execution of strategy.
Evaluation of results (initiating corrective actions).
4. Mission, Vision, and Strategic Objectives
Mission: formulates the purpose and meaning of the business and unifies employee actions.
Vision: represents long-term aspirations of the organization.
Strategic Objectives: derived from the mission and vision, guiding managers in overall direction.
5. SMART Criteria for Goal Setting
Goals may not meet ALL SMART criteria and can be broken into specific objectives.
Strategic objectives specify directions within various organizational areas.
6. Stakeholder Analysis
Stakeholders are groups affected by the organization's activities (internal and external).
Stakeholder Groups:
Internal: Owners, employees, managers.
External: NGOs, media, public, government, suppliers, customers.
7. Global Environment Analysis
Analyzes macro-level factors affecting a firm, focusing on Political, Economic, Social, Technological aspects.
Tools: STEP, PEST analysis, SWOT analysis.
8. Competitive Analysis – Porter's Model
Focuses on competitive dynamics within an industry, including the Five Forces:
Threat of new entrants.
Threat of substitutes.
Bargaining power of suppliers.
Bargaining power of customers.
Rivalry among existing competitors.
9. Portfolio Analysis
BCG Matrix: assesses business strength vs. growth potential.
Stars, Questions, Cash Cows, Dogs.
Generic Strategies: Low cost, differentiation, focus, and hybrid strategies to attain competitive advantage.
10. Implementation and Monitoring
Implementation: putting strategy into action and organizational culture alignment.
Strategic control measures effectiveness and necessary adjustments.
11. Innovation in Strategic Marketing
Continuous adaptation of products and services to market needs.
Engagement with customer feedback and evolving market conditions.
12. Talent Management in Human Resource Management
Focusing on attracting, developing, and retaining talented individuals crucial for organizational growth.
Systems in place for career planning and employee development.