BBA fifth sem

1. ‫الرحی‬ ‫الرحمن‬ ‫هللا‬ ‫بسم‬‫م‬

2. Strategic Management
BBA Fifth Semester
Ahsanullah Mohsen M.Sc.
Ahsanullah.Mohsen@ruhr-uni-Bochum.de

3. Contents
Chapter 1– Nature of Strategic Management
Chapter 2 – Comprehensive Strategic Model
Chapter 3 – External Assessment
Chapter 4 – Internal Assessment
Chapter 5 – Strategies in Action
Chapter 6 – Organizational Structure
Chapter 7 – Market Segmentation
Chapter 8 –Strategy Review, Evaluation and Control
Recommended Book:
Strategic Management (Concepts and Cases), Fred David, 11th Edition.

4. Chapter 1
NATURE OF STRATEGIC MANAGEMENT
Objectives:
This chapter provides an overview of Strategic Management. It introduces a
practical, integrative model of the strategic-management process and defines basic
activities and terms in strategic management and discusses the importance of
business ethics. After reading this chapter you will be able to know that:
• What Is Strategic Management?
• What is the nature of strategy formulation, implementation, and evaluation
activities?
What is Strategic Management?
Strategic Management can be defined as “the art and science of formulating,
implementing and evaluating cross-functional decisions that enable an
organization to achieve its objective.”

5. Interpretation
1. On-going process
2. Shaping broad
plans
3. Strategic goals
4. Internal and
external environment

6. Importance of Strategic
Management
“Plans are less important than planning” – Dale McConkey
1. Globalization: The survival for business
The boundaries of countries no longer can define the limits of our
imaginations.
2. E-Commerce: A business tool
An increasing number of companies are gaining competitive advantage by
using the Internet for direct selling and for communication with suppliers,
customers, creditors, partners, shareholders, clients, and competitors who
may be dispersed globally. E-commerce allows firms to sell products,
advertise, purchase supplies, bypass intermediaries, track inventory,
eliminate paperwork, and share information
3. Earth environment has become a major strategic issue
The resources are scarce but the wants are unlimited. In order to meet the
wants of the world, the resources should be efficiently utilized.

7. Strategic management – A route to success:
Marketing
Management
Finance
Research and development
Stages of Strategic Management:
The strategic management process consists of three stages:
Strategy Formulation (strategy planning)
Strategy Implementations
Strategy Evaluation

8. Key Terms in
Strategic Management
• Competitive Advantage
• Strategists
• Vision And Mission Statements
• External Opportunities And Threats
• Environmental Scanning
• Internal Strengths And Weaknesses
• Long-term Objectives
• Strategies
• Annual Objectives
• Policies

9. The Strategic-Management Model
Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
Develop vision
and mission
Statements
Chapter 2
Perform External
Audit
Chapter3
Perform
Internal Audit
Chapter 4
Establish
Long Term
Objectives
Chapter 5
Generate,
Evaluate and
Select
Strategies
Chapter 6
Implement
Strategies-
Management
Issues
Chapter 7
Implement
Strategies
Marketing,
Finance,
Accounting,
R&D and MIS
Issues Chapter 8
Develop vision
and mission
Statements
Chapter 9
Chapter 11: Global/ International Issues
Strategy
Formulation
Strategy
Implementation
Strategy
Evaluation
Source: Fred R. David. “How Companies Define Their Mission.” Long Range Planning 22. no. 3 (June 1988): 40

10. Benefits of Strategic Management
• Proactive in shaping firm’s future
• Initiate and influence actions
• Formulate better strategies (Systematic, logical, rational approach)
Financial benefits:
• Improved productivity
• Improved sales
• Improved profitability
Non-Financial benefits:
• Increased employee productivity
• Improved understanding of competitors’ strategies
• Greater awareness of external threats
• Understanding of performance reward relationships
• Better problem-avoidance
• Lesser resistance to change

11. Why Some Firms Do No Strategic
Planning?
1. Poor Reward Structures
2. Fire-fighting
3. Waste of Time
4. Too Expensive
5. Content with Success
6. Fear of Failure
7. Overconfidence
8. Prior Bad Experience
9. Fear of the Unknown
10. Honest Difference of Opinion
11. Suspicion

12. • Pitfalls to avoid in Strategic Planning
• Business Ethics and Strategic Management
• Nature of global competition