THE STRATEGIC

MANAGEMENT
PROCESS
Presented by:
James Ian T. Cataga
Learning Objectives
Understand the concepts of strategy and strategic
management
Describe the process of strategic management
Explain the nature of business policy and strategic
management
Study the key areas in developing a strategy
Explain why crafting a strategy is complex?
Describe the need for strategic management
Explain the benefits and challenges of strategic
management
Describe the strategic management process
 Why Strategy and what is Strategy?
Different organisations having similar opportunities and resources perform differently due to their
different strategies.

Strategy is a planned or emergent course of action that is expected to contribute to the achievement
of organisational goals. Strategy can also be an idea or a thought that is viewed to be productive to
complete a course of action.

According to Alfred D. Chandler, he defined strategy as, “the determination of the basic long-term
goals and objectives of an enterprise and the adoption of the courses of action and the allocation
of resources necessary for carrying out these goals.”
By Arthur Sharplin, “a plan or course of action which is of vital pervasive, or continuing importance
to the organisation as a whole.”
By James Brain Quinn, “the pattern of plan that integrates an organisation’s major goals, policies
and action sequences into a cohesive whole.”
Should Strategy be Plan?
Strategies need not be planned and they can be emerged. As
such, strategy is viewed as a planned or emergent course of
action that is expected to contribute to the achievement of
organisational goals.
Criteria for
Effective
Strategy
I. Clear, decisive objectives: III. Concentration:
All efforts should be directed towards clearly The strategy concentrates superior power at the
understood, decisive and attainable overall place and time likely to be decisive. The strategy
goals. All goals need not be written down or must define precisely what will make the
be chronologically precise but they must be enterprise superior in power, best in critical
understood and be decisive. dimensions in relation to its competitors. A
distinctive competency yields greater success
with fewer resources.

II. Maintining the inititative: IV. Flexibility:

The strategy preserves freedom of action The strategy must purposely have built in
and enhances commitment. It sets the resources, buffers and dimensions for flexibility
pace and determines the course of events and maneuvers. Reserved capabilities, planned
rather than reacting to them maneuverability and repositioning allows one to
use minimum resource while keeping competitors
V. Coordinated and VI Surprise: VII Security:
committed leadership:
The strategy should make use of The organisation should secure
The strategy should provide speed, secrecy and intelligence to or develop resources required,
responsible, committed leadership attack exposed or unprepared securely maintain all vital
for each of its major goals. Care competitors at an unexpected operating points for the
should be taken in selecting the time. Thus, surprise and correct enterprise, an effective
leaders in such a way that their own time are very important intelligence system to prevent
interests and values match with the the effects of surprises by the
requirements of their roles. competitors.
Commitment and not mere
acceptance is the basic requirement.
 VII Security:

Forms and Kinds of

Strategies
Strategy is a plan — a consciously intended course of action. Some of
them may be unrealised or some other actions may emerge meanwhile.
Planned Strategy: Ideological Strategy:
Precise intentions are formulated and articulated by
Intentions exist as the collective vision of all the
a central leadership, and backed up by formal
members of the organisation, controlled through
controls to ensure their surprise-free
strong, shared norms; the organisation is often pro-
implementation in an environment that is benign,
active vis-a-vis its environment; these strategies
controllable, or predictable (to ensure no distortion
are rather deliberate.
of intentions); these strategies are highly deliberate.
Entrepreneurial Strategy: Process Strategy:
Intentions exist as the personal, unarticulated The leadership controls the process aspects of
visions of a single leader, and so are adaptable to strategy (who gets hired and so gets a chance to
new opportunities; the organisation is under the influence strategy, what structures they work
personal control of the leader and located in a within, etc.), leaving the actual content of strategy
protected niche in its environment; these strategies to others; strategies are again partly deliberate
are relatively deliberate but can emerge too. (concerning process) and partly emergent
(concerning content), and deliberately emergent.
Imposed Strategy: Consensus Strategy: Disconnected Strategy:
The external environment Through mutual adjustment, The leadership controls the
dictates pattern in actions, either various members converge on process aspects of strategy (who
through direct imposition (say by patterns that pervade the gets hired and so gets a chance to
an outside owner or by a strong organisation in the absence of influence strategy, what
customer) or through implicitly central or common intentions; structures they work within, etc.),
pre-empting or bounding these strategies are rather leaving the actual content of
organisational choice (as in a emergent in nature strategy to others; strategies are
large airline that must fly jumbo again partly deliberate
jets to remain viable); these (concerning process) and partly
strategies are organisationally emergent (concerning content),
emergent, although they may be and deliberately emergent.
internalised and made deliberate.
Umbrella Strategy:
A leadership in partial control of organisational action defines strategic
targets or boundaries within which others must act (for example, that all
new products be high priced and at the technological cutting edge,
although what these actual products are to be is left to emerge); as a result,
strategies are partly deliberate (the boundaries) and partly emergent (the
patterns within them); this strategy can also be called deliberately
emergent, in that the leadership purposefully allows others the flexibility to
maneuver and form patterns within the boundaries.
NEED FOR STRATEGY
1. TO HAVE RULES TO GUIDE THE SEARCH FOR NEW OPPORTUNITIES BOTH INSIDE AND
OUTSIDE THE FIRM.
2. TO TAKE HIGH QUALITY PROJECT DECISIONS.
3. TO DEVELOP MEASURES TO JUDGE WHETHER A PARTICULAR OPPORTUNITY IS A
RARE ONE OR WHETHER MUCH BETTER ONES ARE LIKELY TO DEVELOP IN THE
FUTURE.
4. TO HAVE AN ASSURANCE THAT THE FIRM’S OVERALL RESOURCE ALLOCATION
PATTERN IS EFFICIENT.
5. TO HAVE AND DEVELOP INTERNAL ABILITY TO ANTICIPATE CHANGE.
6. TO SAVE TIME, MONEY AND EXECUTIVE TALENT.
7. TO IDENTIFY, DEVELOP AND EXPLOIT POTENTIAL OPPORTUNITIES.
8. TO UTILISE THE DELAY PRINCIPLE, THAT IS, DELAY THE COMMITMENT UNTIL AN
OPPORTUNITY IS ON HAND.
KEY AREAS IN
DEVELOPING A STRATEGY
1. THE TYPE OF GOODS AND/OR SERVICES THAT THE FIRM WILL PRODUCE AND WILL
SELL.
2. THE MODE OF PRODUCING GOODS AND RENDERING SERVICES.
3. WHO ARE AND WILL BE THE FIRM’S CUSTOMERS.
4. THE METHODS OF FINANCING THE VARIOUS OPERATIONS OF THE FIRM.
5. THE AMOUNT OF RISK THAT THE FIRM WILL TAKE.
6. METHODS OF IMPLEMENTING THE STRATEGY.
Why is Strategy More Complex?
A creation of a strategy is made complex by the reason of changes in
economy particularly the globalisation along wih the emergence of
information technology. It brought a paradigm shifts in the operations and
modes of doing business in general and strategic mangament in particular.

Global Economic Trends

Globalisation along with its drivers like World Trade Organisation, declining
trade and investment barriers, enlarging regional integrations brought
unprecedented shifts in the growth rates of various economies. The significant
trends include:
1. USA is no more the world’s single largest market with the enlargement of European Union.
2. The enlarged European Union has emerged as a single largest world market with its more
than 700 million potential customers.
3. European Union along with Western European countries have per capita income higher than
that of USA.
4. China’s economy is larger than that of Canada.
5. India has also been growing rapidly and now has emerged as the fourth largest economy in
the world.
6. World’s largest economies by 2050 would be USA, China, India, Japan UK, France, Germany
and South Korea.
7. Russia and Italy are expected to decline by 2050.
8. Most of the MNCs headquarters in USA, and Europe are expected to earn more than 60% of
their revenue from China and India by 2020. Therefore, MNCs have been crafting strategies
to invest in the emerging markets like China and India, where the growth would be fast and
sustainable in the future years. General Electric is now investing in China and India while
FedEx is investing in India and Brazil.
Paradigm shifts that affect Strategic
Management
Change in Industry Boundaries: The shifts in globalisation and technology brought
fundamental change in competition among the firms across the boundaries of industries and
nations. For example: entertainment industries, fast-food chains and other industries
Shifts in Mindset: The shift in mindset of the customer from the traditional low cost product to
flexibility, speed, innovation, integration of a wide range of functions and/or services and
information revolution. The change in the mindset of the strategist led to the shift in strategy
crafting from the conventional competitive advantage based on low cost, large scale
economics and huge advertising budget to the innovation, differentiation and enlarging the
product functions and conveniences.
Enlarged opportunities: Globalisation enables the companies to source various inputs like
material, finance, human resources, machinery and technology from different countries
wherever the qualitative inputs at less cost and convenient terms and condition are available.
Change in National Boundaries: Globalisation wiped out the national political boundaries
for the purpose of business. As such most of the businesses have been spreading their
operations to various foreign countries. Consequently national companies started
competing with MNCs not only at home but even in various other countries in addition to
competing with other national companies.
Product Design, Quality and Service: Companies that go global design the products as per
the preferences and conveniences of customers of foreign countries. In addition, they
improve the quality of the product as well as the services due to the severe competition
from the companies operating in the markets.
Heavy Risks of Globalisation: Globalisation led to the closure of some of the domestic
companies, particularly small companies in developing countries. In fact, thousands of
small-scale companies were closed after globalisation due to their inability to compete
with the MNCs. Further, even large-scale companies that had only a few products were
forced to either expand or close down. Thus, globalisation complicates the process of
strategic management due to the complex opportunities and threats created by the open
of markets and severe competition.
Impact of Electronic
Business (e-Business)
Due to dramatic development in information technology during the last two decades, there have been
various developments that enriches businness communication, innovations in computer hardware and
software, network of computers and network of production technology, machinery, product design,
marketing systems, finance administrations and human resources systems with computers.

The next information technology breakthrough is the neural networks which will change the way the
managers do their jobs. Neural networks combine computer software and chips that are capable of
mimicking brain functions. Further, information technnology brougth significant and dramatic changes
through various techiniques like:

Business Processs Re-engineering

Enterprise Resource Planning and
Supply Chain Management
Electro
AREAS OF E-BUSINESS
a. internet within the organization
b. business-to-business dealings
c. business-to-customer transactions

B2C include selling the goods and services through the internet to innumerable customers
spread all over the world. Business houses establish virtual shops and offer goods and
services to whoever visits their web sites. E-commerce is another aspect of e-business.
Some other aspects of e-business are e-auctioning, e-banking, e-engineering, e-travel, e-
operational resource management, e-supply and e-trading.
 The emergence and growth of e-business has its impact on the way of doing business and
thereby on the strategic management also as:

E-BUSINESS PROVIDES ROUND THE CLOCK E-BUSINESS PROFOUNDLY

WITH EASY SHOPPING: FACILITY: INFLUENCING THE
STRUCTURE OF BUSINESS
Shopping on the internet E-business is around-the-clock SUPPLY CHAINS:
provides with fascinating advantage to the customer. E-
experience. business allows a fast and It changes the supply chains and
flexible execution and response their structure.
to the market opportunities. The
web enables a company to
E-BUSINESS SAVES introduce a new product, get HIGHER DEGREE OF
OPERATING COSTS: immediate customer reaction, PERSONALISATION:
refine and perfect the product
It saves operating cost by without investment with greater E-business allows higher degree
eliminating human intervention assurance of success. of personalisation and
in order processing. customisation of products,
services and relationships.
 ORGANISATIONAL ADAPTATION
AND LEARNING ORGANIZATION
Significant environmental dynamism dominated by globalisation and information
technology led to the organisational adaptation and further creation and/or emergence of
learning organisations. Organisations can and do adapt to changing environment factors by
restructuring their activities and by imitating the successful organisations. In strategic
choice perspective proposes that organisations not only adapt to the changing
environment, but have opportunity and power even to reshape their environments.
Organizational learning theory proposes that reactivel adapt to the environmental changes
and proactively improve organizational structure to fit the same to the possible future
environmental shifts either caused or created by using the knowledge they learned from the
environment. Thus, the organisations have become learning organisations.
Synergetic Outcome: Organisations are congregations of individual human resources. Organisations
learn and acquire knowledge through individual employees. Organisational learning output is the
synergetic outcome of individual learning of all employees. Organisations learn by creating conducive
environment for knowledge creation and development through discussion, research, brain storming,
etc. Organisations create conducive environment for their employees to analyse and foresee the
environment and its influence on product design, demand, price and market share of the organisation.
Employees and Learning Organisations: Employees develop the knowledge for the organisation to
prepare for the future by developing systems, structure and products. Flexibility allows the
organisation to develop short-term thrusts within the long-term or a fixed period strategy, resulting in
strategic flexibility. Strategic flexibility demands short-term flexibility due to environmental shifts in
order to achieve the long-term strategic goal more efficiently and not be distracted by environmental
turbulences.
Strategic Flexibility: Strategic flexibility takes place in learning organisation, where the knowledge is
created, shared, acquired, transferred and used for understanding and foreseeing the future
environment. Learning organisations, thus, prepare themselves for the future by changing the
structure adequately before the environmental changes take place.
Knowledge is Competitive Advantage: Organisational learning has become imperative as
organisational activities like product design, new product development, manufacturing, and supply
chain have become competitive and intellectual. In addition, knowledge is accepted as competitive
advantage. Procter and Gamble, Microsoft, and Reliance Industries encourage the employees to
create and share information and knowledge and utilise the same for developing organisational
competencies.
Learning Organisations and Competencies: Learning organisations develop competencies in problem
solving logically, experimenting with new approaches, learning from past experiences, experiences of
themselves and others and transferring the knowledge quickly and utilisation of such knowledge for
their own and others experiences for efficient strategic implementation by arresting or mitigating the
possible deviations.
Learning Organisations and Action Learning: Learning organisation adopt action-learning and action
research techniques for knowledge creation. For example Motorola through its actionlearning tool
allows the marketing, manufacturing, finance and human resource personnel to meet and argue
through brain storming sessions and agree on the new products, new markets, customer groups,
customer needs and pricing before taking up commercial production. These sessions force the future
possible issues and problems and provides for a successful strategy implementation.
 Strategic
Management According to Samuel C. Certo and J. Paul Peter, “Strategic
Introduction management is a continuous, interative, cross-functional process
aimed at keeping an organisation as a whole appropriately matched
Strategic management is concerned with to its environment.” A series of steps that a manager must take are
deciding on strategy and planning how that identified by this definition. These steps include performing an
strategy is to be put into effect. environmental analysis, establishing organisational direction,
formulating organisational strategy, implementing organisational
Strategic analysis seeks to understand the strategy and exercising strategic control.
strategic position of the firm. Strategic
choice is to do with the formulation of According to Schellenberger and Bosenan define the term strategic
possible course of action. Strategic management as, “the continuous process of effectively relating the
implementation is concerned with planning organisation’s objectives and resources to the opportunities in the
how the choice of strategy can be environment.” or, “strategic management is primarily concerned
implemented. with relating the organisation to its environment, formulating
strategies to adapt to the environment and assuring that
implementation of strategies taken place.”
Analysis of the Definitions of
Strategic Management
Strategic management is a continuous process but that does not mean that the organisation
never finishes its strategic work. Managers will always be focusing or reflecting on some
aspect of strategic management, though different aspects of strategic management require
different emphasis and effort of varying intensity at different times.

Though the process of strategic management starts with the step of performing an
environmental analysis, and moves on to strategic control, it comes back as environmental
analysis. Thus, strategic management consists of a series of steps repeated cyclically.

Strategic management identifies its purpose as ensuring that an organisation as a whole

appropriately matches its ever changing environment. Organisations must modify their
strategies in accordance with the changes in its environment.
 Various activities of strategic management draw the inputs from various functional areas of
management. Thus, strategic management process integrates human resources with
marketing, production/operations and finance. All these functional areas of management, in a
comprehensive effort, contribute simultaneously to create an effective plan or output. Thus,
the cross-functional team members work together and the organisation will enjoy the benefits
of synergy.

The members can visualise the overall position of where the firm is and what it needs to do in the
future in order to achieve a sustainable competitive advantage. This process will encourage
commitment of key executives to strategic plan.
HISTORICAL DEVELOPMENT OF
STRATEGIC MANAGEMENT
PHASE 1: BASIC FINANCIAL PLANNING: PHASE 2: FORECAST-BASED PLANNING:

The first phase of the strategic development is During this phase, the primary concern is
fairly a simple routine of basic financial planning. mainly on effective plans, environmental
The main concern during this phase is simply scanning, plan for the future and allocation
meeting annual budget requirement, operational of resources.
functions like production, marketing, finance and PHASE 4: STRATEGIC MANAGEMENT:
human resources and emphasising on the
operational control.
The focus shifts over time from meeting the budget to
PHASE 3: EXTERNALLY-ORIENTED
planning for the future, to thinking abstractly, to working to
PLANNING:
create desired future. To create future decision-makers,
orchestrate and integrate all their organisation’s resources to
There is a remarkable shift during this phase. gain a competitive advantage. They build flexibility into the
The notable developments include: increasing organisational planning process, and foster a supportive,
response to markets and competition, participative climate within the organisation.
complete situational analysis and assessment
of competitive strength, evaluation of Thus, developing an effective and efficient strategic
strategic alternatives and allocation of management process can be a long and difficult task. It
resources based on changing needs from time requires sustained effort, enormous patience and sharp
to time political skills. Strategic management requires efficient
leadership.
 NEED FOR STRATEGIC
MANAGEMENT
Figure below presents the reasons for and reactions to the value of strategic management. The
following factors help us to know the need for strategic management.
1. Due to Change: Everything, except change is not permanent. It does mean that only change is
permanent.Change makes planning difficult. But, firms may pro-act to the change rather than
just react to it. Strategic management encourages the top executives to forecast change and
provides direction and control. It will also allow the firm to take advantage of the opportunities
provided by the changes in the environment and avoid the threats or reduce the risk as the
future is anticipated. Thus, strategic management allows an enterprise to base its decisions on
long-range forecasts.
2. To Provide Guidelines: Strategic management provides guidelines to the employer about the
organisation’s expectations from them. This would minimise conflict between job performance
and job demands. Thus, it provides incentive for employer and helps the organisation in
achieving its objectives.
3. Developed Field of Study by Research: Strategic management was just based on case studies
or anecdotal evidence 30 years ago. But recently, there are methodological problem
researches in this field of study. More systematic knowledge in this area is available at present.
Therefore, today it is worthwhile to study strategic management.
4. Probability for Better Performance: There is no clear research evidence that strategic
management leads to higher performance. But the majority of studies suggest that there is a
relationship between better performance and formal planning. It is also stated that businesses
which plan strategically have a higher probability of success than those which do not have.
5. Systematise Business Decisions: Strategic management provides data and information about
different business transactions to managers and helps them to make decisions systematically.
6. Improves Communication: Strategic management provides effective communication of
information from lower level managers to middle level managers and to top level managers.
7. Improves Coordination: Strategic management improves coordination not only among the
functional areas of management, but also among individual projects.
8. Improves Allocation of Resources: Strategic planning helps in deciding upon most feasible and
viable projects and thereby improves the allocation of resources to the viable projects.
9. Helps the Managers to have a Holistic Approach: Strategic management helps the managers to
have complete understanding of the company and to have a holistic approach towards business
problems and proportions.
BENEFITS OF STRATEGIC
MANAGEMENT
1. Strategic management helps an organisation to be proactive rather than reactive in shaping its
future.
2. It helps organisations to make effective strategies through the use of a more systematic, logical
and rational approach to strategic choice.
3. It minimises the effects of adverse conditions and changes.
4. It allows major decisions and supports established objectives.
5. It gives a degree of discipline and formality to the management of business.
STRATEGIC MANAGEMENT PROCESS:
STRATEGIC FIT VS. STRATEGIC INTENT
As we have discussed earlier, strategic management is a process of series of steps. The basic steps in
strategic management process are:
Identify corporate vision, mission, objectives and goals.
Analyse the corporate external environment to identify opportunities and threats.
Scan the corporate internal environment to identify strengths and weaknesses of the company.
Revise the corporate mission, if there is any drastic deviation in the external environment.
Craft the strategic alternatives based mostly on the corporate opportunities and strengths.
Also consider strategies for correcting company’s weaknesses, when the opportunities are significant
and distinct. Similarly consider crafting strategies by correcting the threats, as and when possible, and
when the company has distinctive strengths or competencies.
Select the best corporate strategy. Craft business unit level and functional level strategies based on
corporate strategy.
Implement the strategy.
Evaluate and control the strategic implementation process in order to achieve the best performance.
Strategic management process includes: formulation of vision,
mission, objectives, goals, strategies based on SWOT analysis.
Vision statements visualise the future of the company. An organisation’s vision statement answers the
question: “What do we want to become?” or “What can we become?” Normally, mission statements
are defined based on vision statements. Vision statement of a life insurance company is “To take care,
your life’s primary goal”.
Mission statements defines the scope of business operations of a firm that distinguishes it from
similar firms.
Organisation defines objectives based on its mission. Objectives specify the end towards which an
activity is aimed at, long-range objectives specify the results that are desired in pursuing
organisation’s mission. For example, achieving high level of customer satisfaction is the long-run
objective of ICICI Bank. The short-term objectives prefer targets normally of less than one-year’s
duration. Short-term objective of ICICI Bank is to make the transactions and procedures flexible for
the convenience of the customer. Thus, objectives are open-ended statements.
Goals are defined based on the objectives. Goals are closed-ended statements. Goal in 2008 of ICICI
Bank in relation to customer service is to complete each transaction of a customer in less than 10
minutes time
 External Environment Analysis (or Opportunities and Threats Analysis): Organisations analyse
external environment in order to find the opportunities to achieve organisational goals as well as
objectives. Similarly, external environmental analysis points out the possible threats to the
achievement of organisational goals. External environment consists of social, technical, economic,
political, legal, and government factors. For example: Whirlpool

Internal Environment Analysis (or Strengths and Weaknesses): Internal environment consists of
structures, resources, values, competencies, cultures, and systems of a company. Internal
environmental analysis helps to identify company’s strengths and weaknesses in relation to the
market, customer needs and all other external environmental factor.

Companies evaluate their strenghts and weaknesses relative to the:

external environmental factors
markets in which currently operating and propose to operate
objectives and goals of the companies and
competitor's strengths and weaknesses
SWOT ANALYSIS AND
STRATEGY FORMULATION
The next logical step is to bring the alliance between opportunities and appropriate strengths,
taking stock of weaknesses in relation to opportunities, study the possibility of correcting the
weaknesses and study the threats, altering the strengths to convert the threats into
opportunities. This process helps the organisation to make use of the opportunities to the full
extent by aligning its strenghts to the opportunities. This alignment further enables the
company to formulate appropriate corporate strategies.
STRATEGIC FIT VS.
STRATEGIC INTENT
Businesses, intent is preferring the situation of acquiring necessary resources and capabilities
to achieve the objectives or goals under the circumstances of future environmental challenges
and/or opportunities.
BEYOND STRATEGIC FIT AND
STRATEGIC INTENT
Certain organisations think beyond strategic fit and strategic intent by changing the current
environment and/or creating new environments to their favour. This is by influencing the
change process of the culture, altering the political factors by influencing the political parties,
by introducing technological changes, by initiating different economic initiatives like granting
loans, deferring payments and advance/delayed payments.

Normally companies initially craft corporate level strategies, which further become the basis
for formulating global level strategies.
Corporate-level strategies: Corporate level strategies link the opportunities, strengths/
competencies to the company’s overall objective and goal. These strategies include
expansion, diversification, mergers, joint ventures, takeovers, vertical and horizontal
integration, entering into a new market and/or foreign country. Corporate level strategies
affect the strategies and operations of all business units and functional level units.

Global strategies: Global strategies include a decision to enter foreign markets. This
strategy includes which countries to enter and the mode of entry. Global strategy is based
on the corporate strategy.
Business level strategies: Business level strategies encompasses two or more functional units in
crafting and implementing a strategy, for example, cost leadership strategy encompasses the
integrated contribution of all functional areas. Other business level strategies include
differentiation, niche market, total quality and fast delivery.

Functional level strategies: These strategies are more or less related to each function like
production/operations, marketing, finance, human resource, information management and
research and development. These are the ultimate strategies which are linked to corporate and
business level Strategies. For example, managing cultural diversity is the human resource
management strategy, while the merger is the corporate strategy.

Strategic Evaluation and Control: The final step of strategic management process is strategic
evaluation and control. It focuses on monitoring and evaluating the strategic management process
in order to improve it and ensure that it functions properly. The managers must understand the
process of strategic control and the role of strategic audit to perform the task of control
successfully.
CHALLENGES FOR STRATEGIC
MANAGEMENT
Strategic management faces different kinds of challenges viz., technological advancement and
obsolescence, product or service innovations and development, etc. The recent additions to
the challenges are: global issues consequent upon economic liberalisation, quality issues
consequent upon the total quality management concept of the Japanese firms and social
issues.

Technological Advancements and Strategic Management: As necessity is the mother of

invention, competition and a host of other reasons are responsible for the rapid
technological advancements and innovations. These advancements and innovations of one
firm poses challenges for the strategic decision-making of the competing firms. Further,
the continuous technological advancements led to the obsolescence of the existing
technologies.
Global Issues and Strategic Management: With the announcement of economic
liberalisation in India and consequently opening up of the economy to the rest of the world
in 1991, business activities have tended to cross national boundaries more intensely and
frequently

Quality Issues and Strategic Management

Economic Boom and Recession: Both economic booms as well as economic recession
affect the strategic management process. Economic boom provides the opportunities for
the increase in demand as well as business operations and economic recession in general
create threats.

Social Issues and Strategic Management: Since the organisation is part and parcel of the
society, most of the organisations are of the view that, social responsibility is the
managerial obligation to act, protect and promote both organisational interests and
welfare of the society. Strategic management process of an organisation will be affected
by recognising this obligation.
THANK YOU FOR
LISTENING!
PRESENTED BY:

James Ian T. Cataga