This document discusses strategic management. It outlines the learning objectives, which are to discuss strategic management, the role of corporate management, and evaluate students' knowledge. It then outlines the key topics to be covered, including strategic management process, role of governance and stakeholders. It defines strategic management and discusses the benefits. Key terms are defined, including competitive advantage, vision and mission statements, strengths and weaknesses. The three stages of the strategic management process are described: strategy formulation, implementation, and evaluation. Strategy activities are said to occur at three levels - corporate, divisional, and functional. Questions are provided to evaluate understanding of board of directors and top management.

1. STRATEGIC MANAGEMENT

2. LEARNING OBJECTIVES:
1. To discuss strategic management
2. To discuss role of corporate management
3. To evaluate the students’ knowledge of the subject.
OUTLINE:
1. Strategic Management
2. Key Attributes of Strategic Management
3. Strategic Management process
4. Role of Corporate Governance & Stakeholder
Management

3. Definitions:
 It can be defined as the art and science of
formulating, implementing, and evaluating cross-
functional decisions that enable an organization to
achieve its objectives.
 It is a set of managerial decisions and actions that
determines the long-run performance of a
corporation.

4. BENEFITS OF STRATEGIC MANAGEMENT

5. Key Terms:
1. Competitive advantage
 “anything that a firm does especially well compared to rival
firms.”
2. Strategists
 individuals who are most responsible for the success or failure
of an organization.
3. Vision and mission statements
 Vision- “What do we want to become?”
 Mission - “What is our business?”
4. External opportunities and threats
 refer to economic, social, cultural, demographic,
environmental, political, legal, governmental, technological,
and competitive trends and events that could significantly
benefit or harm an organization in the future.

6. 5. Internal strengths and weaknesses
 They arise in the management, marketing, finance/accounting,
production/operations, research and development, and
management information systems activities of a business.
6. Long-term objectives
 Objectives can be defined as specific results that an organization
seeks to achieve in pursuing its basic mission. Long-term means
more than one year.
7. Strategies
 Strategies are the means by which long-term objectives will be
achieved.
8. Annual objectives
 Annual objectives are short-term milestones that organizations
must achieve to reach long-term objectives.
9. Policies
 Policies are the means by which annual objectives will be
achieved.

8. The strategic-management process consists of three
stages:
1. Strategy Formulation
-Includes developing a vision and mission,
identifying an organization’s external
opportunities and threats, determining internal
strengths and weaknesses, establishing long-
term objectives, generating alternative
strategies, and choosing particular strategies to
pursue.

9. The strategic-management process consists of three
stages:
2. Strategy Implementation
-includes developing a strategy-supportive
culture, creating an effective organizational
structure, redirecting marketing efforts,
preparing budgets, developing and utilizing
information systems, and linking employee
compensation to organizational performance.

10. The strategic-management process consists of three
stages:
3. Strategy Evaluation
-The final stage in strategic management.
-All strategies are subject to future modification
because external and internal factors are
constantly changing.

12. Strategy formulation, implementation, and evaluation
activities occur at three hierarchical levels in a large
organization:
1. Corporate
2. Divisional or strategic business unit, and
3. Functional
By fostering communication and interaction among
managers and employees across hierarchical levels,
strategic management helps a firm function as a
competitive team.

13. A. BOARD OF DIRECTORS
1. Who is on the board? Are they internal
(employees) or external members?
2. Do they own significant shares of stock?
B. TOP MANAGEMENT
1. What person or group constitutes top
management?
2. What are top management’s chief characteristics in
terms of knowledge, skills, background, and style? If
the corporation has international operations, does top
management have international experience? Are
executives from acquired companies considered part
of the top management team?

14. TOPIC 2: FINANCIAL
MANAGEMENT