SMA300(1) Strategic Management

• Strategic Management is SMA300(1)
• Strategic management involves marketing, vision, organization, solution, strategy, and development.

Strategic Management Overview

• Involves strategic leadership and strategic direction
• Requires both external and internal environmental analysis
• Consists of chapters discussing corporate governance, strategy formulation, business models, and strategic alignment.
• Requires implementation and change management incorporating structural drivers for continuous improvement
• Concludes with contemporary applications in the global marketplace, specifically in Africa.
• The strategic management course overview can be found in Ehlers et al (2019, p 13).

Introduction

• Includes the definition of strategic management, the strategic management process and identifying key people
• Includes the benefits and risks and the strategic concepts that guide future decisions.

Definition of Strategic Management

• Strategic management is a process integrating organizational functions and resources
• It is implemented to align formulated strategies with the environment and should achieve long-term organizational goals
• Its goal is to gain a competitive advantage and add value for stakeholders

Importance of Strategic Management

• It is important to have a competitive advantage
• Strategic management helps to achieve competitive advantage through different strategies
• A strategy is an effort by an organization to outperform its rivals

Strategic Management Process

• Involves analysis, formulation, implementation, and control.
• The analysis phase includes environmental scanning, governance assessment, RBV, and Porters 5 Forces.
• The formulation phase involves selecting generic and grand strategies, considering the industry life cycle, and strategic analysis/choice.
• The implementation phase manages change, using drivers of implementation.
• The control phase evaluates effectiveness and enables continuous improvement.

Strategic Management Process (Chapters)

• Organisational direction and environmental analysis(Chapters 2, 4 & 5)
• Strategy formulation (Chapters 6, 7, 8 & 9)
• Strategy implementation and control (Chapters 10, 11, 12 & 13)
• Contemporary strategic issues (Chapters 14 & 15)

Who's Involved?

• Human resources or "human capital" act as the catalyst in implementing planned strategies
• Environmental analysis is the responsibility of every manager at every managerial level
• Strategy formulation is the responsibility of top management
• Strategy implementation is the responsibility of all employees and potentially other stakeholders

Stakeholders in Strategic Management

• Stakeholders include shareholders, government, media/press, suppliers, customers, community, employees, and financial institutions
• Types of Stakeholders can be found in Ehlers et al (2019 P. 19)

Benefits of Strategy

• Providing a vision for the future
• Confirming the purpose and values of an organization
• Setting objectives and clarifying threats and opportunities
• Determining methods to leverage strengths
• Mitigating weaknesses
• Setting a framework and boundaries for decision-making
• Increasing profitability and productivity

Functional Benefits of Strategic Management

• Improved communication across the functions of the organization
• Empowerment
• Discipline and a sense of responsibility
• More effective time management
• More effective resource management
• Provides a framework for change management

Risks of Strategy

• Time
• Unrealistic expectations from managers and employees
• Uncertain chain of implementation
• Negative perception of strategic management
• No specific objectives or measurable outcomes
• Culture of change
• Technological changes
• Senior management turnover
• Merger integration
• Stakeholder pressure
• Competitive pressure
• Consumer demand and preferences shifts
• Regulatory changes

Strategic Issues and Concepts

• Innovation economy and knowledge management
• Knowledge management
• Innovation management
• Knowledge innovation
• Multiculturalism in South African organizations and knowledge management
• Corporate entrepreneurship
• Change management
• Strategic leadership