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HPS 2304: Strategic Management Notes

Institution: Jomo Kenyatta University of Agriculture and Technology

Course: Bachelor of Commerce

Content Category: Lecture Notes

Posted By: PENTAMRK

Document Type: PDF

Number of Pages: 155

Price: KES 200
 
    

Views: 650     Downloads: 8

Summary

LESSON 1
Introduction to strategic management
By the end of this chapter, the learner should be able to define, identify, explain,
describe and discuss the following:
1. Different terms as used in strategic management
2. Concepts and techniques of strategic management
3. Features of Strategy
4. Roles of strategy
5. Strategic management process
6. Levels of management
1.1. Definition of terms:
1. Strategy :regarded as a unifying idea which links purpose and action (Collin
white) or combination of competitive moves and business approaches that
managers employ to please customers ,compete successfully and achieve organizational objectives(Thompson /Strickland ) or the set of actions through
which an organization by accident or design develops resources and uses
them to deliver services or products in a way users find valuable (Adrian
/Alison ).
2. Strategic management: refers to the managerial process of forming a strategic vision ,setting objectives ,crafting strategy and then overtime initiating
whatever corrective adjustment in the vision ,objectives ,strategy and execution are deemed appropriate.
1.2. The concepts and techniques of strategic management:
1. Resource: something that an organization owns ,controls or has access to on
a semi-permanent basis e.g. money and physical objects.
2. Customers: the people or other organizations that pay for the organizations
services or products

3. Users: the people or other organizations who actually use an organizations
products or services
4. Stakeholders: people with an interest in an organizations success ,failure or
activities and therefore a desire to influence behavior .
5. Business model: deals with whether the revenue cost profit economics of its
strategy demonstrate the viability of the enterprise as a whole.
6. Strategic vision: this a roadmap of a company’s future.
7. Company’s mission :typically focused on its present business scope.
8. Objectives: are organizations performance target the results and outcome it
wants to achieve.
1.3. Features of Strategy
1. Strategy is Significant because it is not possible to foresee the future. Without
a perfect foresight, the firms must be ready to deal with the uncertain events
which constitute the business environment.
2. Strategy deals with long term developments rather than routine operations,
i.e. it deals with probability of innovations or new products, new methods of
productions, or new markets to be developed in future.
3. Strategy is created to take into account the probable behavior of customers
and competitors. Strategies dealing with employees will predict the employee
behavior.
Strategy is a well defined roadmap of an organization. It defines the overall
mission, vision and direction of an organization. The objective of a strategy is to
maximize an organization’s strengths and to minimize the strengths of the competitors.
Strategy, in short, bridges the gap between “where we are” and “where we want to
be”. The strategy statement of a firm sets the firm’s long-term strategic direction and
broad policy directions. It gives the firm a clear sense of direction and a blueprint
for the firm’s activities for the upcoming years. The main constituents of a strategic
statement are as follows:
...................................


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