Rafaqat
Strategic Management †MGT603 VU
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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:
Influenced
Environment Scanning Strategy Fermentation Strategy Implication Evaluation
Control
On-going
Process
Shaping & achieving
broad plans
Broad plans are for
achieving strategic
External Environment
Top management or
Internal Environment to
achieve
Forced
Strategic Management †MGT603 VU
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