Explanation of Strategic Management

 Strategic Management:

definition:

“The Science and craft or art of implementing, farming and assessing cross functional decisions for accomplishing the goals and objective actually and proficiently.”

Q: Why strategic management is combination of art and science?
• In art there is no logic formula, ratio and particular percentage. It is not measurable. The way i am telling it's an art. The way you are going to understand peoples.

Q: In strategic management word art is used. Why?
• Management is Social Science.

Q: what is social science?
• activity 
Management is natural Science.

Numerical—>(Science) + Theoratical—>Art

• Implementation is an art.

Q: How peoples change?
• People change when they get the benefit and change accepted. When you accept the change resistance create, then through art you can solve it or when you have leadership quality/art quality.

Unfreeze—> Change —> Freeze

e.g: ice convert into water and then again water convert into ice.

Q: When change comes?
• When you have an art. When you present/explain your with logic, examples..
• Formulation and evaluating is science.
• You are strategic manager then you are think for a long term benefit.
For example:
• Our goal is start a new business therefore;
Our objective:
Degree
Internship
Job 
Experience
• What you want? What are you doing.....

Strategies:

• Long term and short term objective or annual objectives.
• Long term objectives are Mission driven pressures. 
• When we achieve long term objectives then convert into short term objectives its also called annual objectives for annual objectives we make policies.
• Mission is fundamentals purpose what will be in future? what is present.
Q: What is business?
• Its vision our objective are always related to Mission.
Q: What we are and what we are going to achieve?
long term ; strategies / Mission
shorts term ; policies
Q: Why we are studying strategic Management?
a. Change environment
b. Globalization
c. Demographic change
d. E-commerce

Benefits/Advantages of Strategic Management:

1. Proactive attitude:

• Before the action

2. We can systematic: 

logical and rational

Systematic; step to step process

3. Financial Benefit:

• Sales increase
Through strategies we improve our product such as product quality and increasing Sales then we get profit.
Q: Feets and why not strategic Management?
1. Time consuming
2. Its expensive
3. Fear of failure due to over confidence
4. Self interest
• Think about anything again and again its creative thinking.

Non-financial Benefits Of Strategic Management:

• Providing guide.
• Making performance measurable.
• Creating pro-active environment.
• It helps the business to know its threats, weaknesses and loophoes.
• It helps to understand the rival business in better manner.
• It helps a business to become more decilined and organized.
• It bridges a connection between performance and rewards for the representatives.
• Under properly strategic planning an firm grows rationally understanding its feasibilities.
• If you are planning to expand a business go for mercurous strategic management to find the feasibility or viability of business expansion at the present condition.

a. Improve stability 
b. Decrease Risk
c. Strong labour supply

d. Identifies SWOT

Types of Strategies:

1. Integration Strategies:

Forward Integration
Backward Integration
Horizontal Integration

2. Intensive Strategies:

Market Penetration
Market Development
Product Development

3. Diversification (Improvement) Strategies:

Related Diversification
Unrelated Diversification
4. Defensive Strategies:
• Refreshment
• Divestiture (uniqueness)
• Liquidation

5. Generic

• Cost leadership
• differentiation
• Foucs

Financial Objective

• Growth in Earning
• Growth in Revenue
• High Dividends
• Large profit Margin
• Return on Investment
• High earning per Share
• Improve cash flow etc.

Strategies:

• High market share
• Quick on time delivering
• High Geographic Expansion