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Examples of Strategies Strategy 1: buy equipment and other required assets with
the money and use resources including human resources tomanufacture product A.
Strategy 2: Outsource the production of product A and usethe resources including human resources to market and
distribute the product.
Strategy 3: Sell patent to a larger firm, sell resources, fireemployees, and do other business
Example: once the organization decides that it wants to be amanufacturer of product A, there are many decisions thatmust be made about how to profitably manufacture product A and gain competitive advantage.
Strategy is the process by which individualsand organisations make choices aboutscarce resources so as to satisfy wants over time in an environment of uncertainty. They
are aided in this process by market and non-market forces.
A strategy is defined as a pattern of purposes, policies, programmes, actions,
decisions, or resource allocations thatfocuses essentially on deciding on what theorganization is trying to do, what it is tryingto become within its business environment.
± Strategic management is a means of understandingstrategic position of organisation; formulating courses of action, evaluating them and choosing between them; aswell as planning how choice of strategy can be put intoeffect and managing resultant changes
± It is art and science of formulating, implementing, andevaluating cross-functional decisions that enable anorganization to achieve desired goals
Strategic management process
± The process by which managers choose a set of strategies that will allow a company to achieve superior performance
Steps of Strategic managementTask 1: Select the corporate vision and mission
Task 2: Setting ObjectivesTask 3: Select strategies that build on the organization¶sstrengths and correct its weaknesses in order to takeadvantage of external opportunities and counter externalthreats
Analyze the external competitive environment to identifyopportunities and threats
Analyze the organization¶s internal environment to identify itsstrengths and weaknesses
Task 4: Implement the strategyTask 5: Evaluating performance, monitoring new development,
µanimating the dream¶. These statementsoffer aspirations about the future strategicdirection of the organisation and are oftenincorporated in Mission statements.
In this stage the organisation is developinga view of what it should look like once its
strategies are achieved and developed totheir full potential.
Compaq, along with our partners, willCompaq, along with our partners, will
deliver compelling products and services of deliver compelling products and services of
the highest quality that will transformthe highest quality that will transformcomputing into an intuitive experience thatcomputing into an intuitive experience that
extends human capability on all planesextends human capability on all planes ----
communication, education, work, and play.communication, education, work, and play.
We are dedicated to being the world¶s best atWe are dedicated to being the world¶s best at
bringing people togetherbringing people together ---- giving them easygiving them easy
access to each other and to the informationaccess to each other and to the information
and services they want and needand services they want and need ---- anytime,anytime,