Name: "Components of Strategic Management"
Uploaded: 2023-11-01
Duration: 9 min 53 s
Description: WELCOME TO TOPWORKER. TODAY WE WILL BE DISCUSSING ABOUT COMPONENTS OF STRATEGIC MANAGEMENT..

[Audio] WELCOME TO TOPWORKER. TODAY WE WILL BE DISCUSSING ABOUT COMPONENTS OF STRATEGIC MANAGEMENT.. 

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[Audio] Define Strategic Management: Strategic management is the process of setting an
organization&#39;s direction and allocating resources to achieve its long-term objectives.
In other words, it&#39;s about making choices that will lead the organization to success.
Importance of Strategic Management: Strategic management is crucial because it
provides a roadmap for the organization&#39;s future. By defining where the organization
is headed, it ensures that everyone is on the same page. It also helps in setting
clear, well-defined goals and aligning efforts to achieve those goals.
Key Objectives: The ultimate goal of strategic management is twofold. First, it aims
for long-term success, which translates into sustained profitability and growth.
Second, it seeks to establish a competitive advantage, giving the organization a
unique edge in the market, whether it&#39;s through superior products, lower costs, or
innovative services.. 

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Strategic Management Strategic management is the process of setting an organization's direction and allocating resources to achieve its long-term objectives Importance of Strategic Management Provides a roadmap for the organization's future Helps in setting clear goals and aligning efforts Key Objectives Long-term success: Sustained profitability and growth Competitive advantage: Unique edge, like superior products or lower costs

[Audio] External Environment (PESTEL Analysis): To make informed strategic decisions,
organizations analyze their external environment using a PESTEL framework, which
encompasses Political, Economic, Social, Technological, Environmental, and Legal
factors. For example, a tobacco company would consider how government
regulations, like taxation and advertising restrictions, affect its industry.
Internal Environment (SWOT Analysis): Internally, organizations conduct a SWOT
analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This
analysis helps them identify their internal strengths and weaknesses and external
opportunities and threats. For instance, a tech company may recognize strengths in
its innovative products, weaknesses in inefficient processes, and opportunities in
emerging markets, while being aware of threats from aggressive competitors.. 

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External Environment Example: Government regulations affecting the tobacco industry Internal Environment SWOT stands for Strengths, Weaknesses, Opportunities, and Threats Example: Strengths and weaknesses of a tech company, and how it exploits opportunities and mitigates threats

[Audio] Importance of Clear Objectives: Clear objectives are the foundation of effective
strategic management. Objectives should be SMART, meaning Specific,
Measurable, Achievable, Relevant, and Time-bound. This ensures that everyone
understands what needs to be achieved and when.
SMART Criteria for Objectives: An example of a SMART objective could be,
&quot;Increase market share by 10% within the next 12 months.&quot; It&#39;s specific in terms of
market share, measurable in percentage, achievable with a 10% growth, relevant to
business goals, and time-bound within a year.
Examples of Strategic Objectives: Strategic objectives can vary widely based on the
organization&#39;s goals. For instance, a company might aim to &quot;Expand into three new
international markets in the next three years&quot; or &quot;Reduce operational costs by 15% in
the next fiscal year.&quot;. 

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Importance of Clear Objectives Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound SMART Criteria for Objectives Example: "Increase market share by 10% within the next 12 months." Examples of Strategic Objectives Examples like "Expand into three new international markets in the next three years" or "Reduce operational costs by 15% in the next fiscal year."

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Corporate, Business, and Functional-Level Strategies Corporate strategy defines the overall direction, business strategy focuses on specific business units, and functional strategies deal with departments Example: Apple's corporate strategy includes diversification, business-level strategies involve differentiation, and functional strategies focus on marketing tactics Competitive Advantage Discuss cost leadership, differentiation, and focus as primary competitive strategies Examples: Walmart for cost leadership, Apple for differentiation, and Ferrari for focus Tools and Models Introduce Porter's Five Forces for industry analysis and the BCG Matrix for portfolio analysis Example: How a company uses Porter's Five Forces to assess industry competition and the BCG Matrix to manage its product portfolio

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Organizational Structure Alignment The organizational structure should support the chosen strategy Example: A cost leadership strategy may require a streamlined, centralized structure Resource Allocation Allocate financial and human resources effectively Mention "strategic budgeting" for allocating resources Performance Metrics and Monitoring Use KPIs and dashboards for tracking progress Regular reviews and reports for monitoring

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Monitoring Progress Continuous monitoring of strategy execution Identifying Issues and Challenges Need to identify problems such as deviations from the plan or changing market conditions Making Necessary Adjustments Highlight the flexibility of strategic management and how companies adapt strategies Conclusion: Emphasize the iterative nature of strategic management

[Audio] Importance of Clear Objectives: Clear objectives are the foundation of effective
strategic management. Objectives should be SMART, meaning Specific,
Measurable, Achievable, Relevant, and Time-bound. This ensures that everyone
understands what needs to be achieved and when.
SMART Criteria for Objectives: An example of a SMART objective could be,
&quot;Increase market share by 10% within the next 12 months.&quot; It&#39;s specific in terms of
market share, measurable in percentage, achievable with a 10% growth, relevant to
business goals, and time-bound within a year.
Examples of Strategic Objectives: Strategic objectives can vary widely based on the
organization&#39;s goals. For instance, a company might aim to &quot;Expand into three new
international markets in the next three years&quot; or &quot;Reduce operational costs by 15% in
the next fiscal year. THANK YOU.. 

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"Components of Strategic Management"

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Today We Will Be Discussing About Components Of Strategic Management.

avatar

Strategic management is the process of setting an

organization&#39;s direction and allocating resources to achieve its long-term objectives.

In other words, it&#39;s about making choices that will lead the organization to success.

Strategic management is crucial because it

provides a roadmap for the organization&#39;s future

is headed, it ensures that everyone is on the same page

clear, well-defined goals and aligning efforts to achieve those goals.

The ultimate goal of strategic management is twofold

for long-term success, which translates into sustained profitability and growth.

Second, it seeks to establish a competitive advantage, giving the organization a

unique edge in the market, whether it&#39;s through superior products, lower costs, or

organizations analyze their external environment using a PESTEL framework, which

encompasses Political, Economic, Social, Technological, Environmental, and Legal

For example, a tobacco company would consider how government

regulations, like taxation and advertising restrictions, affect its industry.

analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats

analysis helps them identify their internal strengths and weaknesses and external

For instance, a tech company may recognize strengths in

its innovative products, weaknesses in inefficient processes, and opportunities in

emerging markets, while being aware of threats from aggressive competitors.

Clear objectives are the foundation of effective

Objectives should be SMART, meaning Specific,

Measurable, Achievable, Relevant, and Time-bound

understands what needs to be achieved and when.

An example of a SMART objective could be,

&quot;Increase market share by 10% within the next 12 months.&quot

market share, measurable in percentage, achievable with a 10% growth, relevant to

business goals, and time-bound within a year.

Strategic objectives can vary widely based on the

For instance, a company might aim to &quot;Expand into three new

international markets in the next three years&quot

or &quot;Reduce operational costs by 15% in