TAILIEUCHUNG - Strategic Management Part 1

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.” | Strategic Management MGT603 VU Lesson 1 NATURE OF STRATEGIC MANAGEMENT Objectives This Lecture 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 lecture you will be able to know that What Is Strategic Management Discuss 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. Definition The on-going process of formulating implementing and controlling broad plans guide the organizational in achieving the strategic goods given its internal and external environment . Interpretation 1. On-going process Strategic management is a on-going process which is in existence through out the life of organization. 2. Shaping broad plans First it is an on-going process in which broad plans are firstly formulated than implementing and finally controlled. 3. Strategic goals Strategic goals are those which are set by top management. The broad plans are made in achieving the goals. 4. Internal and external environment Internal and external environment generally set the goals. Simply external environment forced internal environment to set the goals and guide them that how to achieve the goals How the strategic management show On-going Process Shaping achieving broad plans Broad plans are for achieving strategic Influenced v External Environment _1__ Forced Top management or Internal Environment to achieve Environment Scanning Strategy Fermentation Strategy Implication Evaluation Control Copyright Virtual University of Pakistan 1 VU Strategic Management MGT603__ Importance of strategic Management Why do

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