LU6 Chapter 16: Introduction to Strategic Management
Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management
Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process
LO3: Explain the importance of alignment in strategic management
LO4: Evaluate a vision and mission statement of an organisation
LO5: Identify the strategy of an organisation using Porter’s generic strategy
framework
1
, Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management
Strategic management is responsible for ensuring that all functional areas are
working towards the same goal
Look at the org as a whole and ask 3 key questions:
o Where are we now?
o Where do we want to be?
o How are we going to get there?
Strategic management = the ongoing process of developing, implementing and
monitoring appropriate strategies
Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process
Org have to adapt to chg continuously due to changing consumer demands and
competition for market share
Must adapt to:
o Chgs in external environment – opportunities/threats
o Chgs in internal environment – strengths and weaknesses
o Extent to which chosen strategies have been successful
Strategic management is thus done on a continuous basis – not just once
2
Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management
Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process
LO3: Explain the importance of alignment in strategic management
LO4: Evaluate a vision and mission statement of an organisation
LO5: Identify the strategy of an organisation using Porter’s generic strategy
framework
1
, Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management
Strategic management is responsible for ensuring that all functional areas are
working towards the same goal
Look at the org as a whole and ask 3 key questions:
o Where are we now?
o Where do we want to be?
o How are we going to get there?
Strategic management = the ongoing process of developing, implementing and
monitoring appropriate strategies
Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process
Org have to adapt to chg continuously due to changing consumer demands and
competition for market share
Must adapt to:
o Chgs in external environment – opportunities/threats
o Chgs in internal environment – strengths and weaknesses
o Extent to which chosen strategies have been successful
Strategic management is thus done on a continuous basis – not just once
2
