Strategic management

Strategic management

"If the captain of the ship does not know the port on which he must anchor, he will not be able to benefit from the wind directions, and his personal efficiency will not benefit him, and in most cases, he will not dock at any port."

greek wisdom

The concept of strategic management:

Strategic management: is to define the general policy that emanates from a clear and comprehensive vision through which long-term goals are achieved. It is making decisions related to determining the direction of the future of the organization and putting these decisions into practice.

The concept of strategic management arose due to the rapid and evolving change in the second half of the twentieth century of the environment and its transformation from a stable environment to a rapidly changing environment, and due to the emergence of high competition, and the presence of new challenges faced by institutions.

strategic choice

It represents the best representation of its strategic objectives.

It requires some kind of strategic thinking and analysis.

You need a number of tools to reduce the number of alternatives.

The decision to choose the optimal alternative from among many alternatives.

Obstacles to strategic management

Not setting the target.

The dominance of narrow thinking.

Giving in to the wrong direction.

Focus on daily operations.

Forget about future threats.

Intellectual unity and consensus.

Skip the stages of thinking.

Stages of strategic management:

Assessment of the internal and external environment of the organization
Analyze strategic alternatives.
Determine the most attractive alternatives.
Choose a set of long-term goals.
Determine the objectives of the short-term strategies.
Implementation of strategic options.
Evaluate the success of the strategy.
preparation stage

Ensuring senior management participation and commitment to the planning process.

Begin collecting, arranging, and categorizing the required data.

Study and measure institutional performance and the internal and external environment for work.

Determine the optimal goal.

Determining the members of the planning team and defining responsibilities and authorities.

Determine the time required to complete the plan.

Estimated budget estimate

The stage of analyzing the organizational environment - the general external environment -

The general external environment: It is the set of forces that influence economically, socially, culturally, legally, politically, and technologically the work of the institution. The factors of the overall or general environment are considered to have an indirect impact on the institution.

Analysis of the external environment PESTEL

A tool for analyzing the external environment of the organization and tracking the factors affecting it, including political, economic, social, technological, environmental, legislative and legal

The stage of analyzing the organizational environment - the special external environment -

The special external environment: It is the set of circumstances, variables, and resources within the organization that directly affect its performance, and through administrative decisions it can be changed or controlled, and it includes customers, suppliers, competitors, the market and related parties...

The organization's life cycle is determined from birth, growth, maturity, and decline.

Stakeholders Analysis

Beneficiaries: customers, regions, economic sectors, social groups...

External partners: funders, relevant international bodies and NGOs.

Other supporters: Their contributions vary in the plan to include the provision of advisory services, technical expertise, incubation and sponsorship, material and moral support, promotion and media dissemination...

Sectoral Analysis

Offer: It includes the services provided, the providers of these services, and the conditions for providing these services.

The request: It includes a presentation of the categories of beneficiaries, the type of their testimony, and the amount of needs not covered.

Coverage: This axis deals with the needs of some social and professional groups and regions that did not have to be met by the administration, and the ability of this department to meet them in the required place and time.

Pricing of services and cost recovery: In accordance with the economic principle which says that those who consume the service are those who bear the cost.

The stage of analyzing the organizational environment - the internal environment -

The process by which the strengths and weaknesses of the organization's internal environment are identified and taken into account when determining the opportunities available to it and confronting threats in the external environment.

They are all factors under the control of management, such as policies, systems, and rules of work, physical and human conditions, working conditions, and available material resources.

SWOT Analysis Tool

The quadripartite analysis is a means of analyzing the environment in which the strategic plan will be developed and implemented, and an information base upon which the strategic planning process is based. In its internal section, it deals with the administration's institutional strengths and weaknesses, and in its external section, the opportunities available in the external environment and the challenges arising from it.

Choosing alternatives that take advantage of the available opportunities and maximize the factors of strength

Choosing alternatives that take advantage of the available opportunities and overcome the factors of weakness

ST

Choosing factors that maximize strength and neutralize risks

WT

Choose factors that reduce vulnerabilities and neutralize threats

Comprehensive analysis

Obstacles to strategic management

Enterprise strategy:

They focus on the general orientation of the institution in terms of growth, management methods, and product lines.

Reflect on the quality of the enterprise's activity.

Reflect the flow of financial and non-financial resources.

It establishes an effective relationship between the institution and interest groups.

Good exploitation of the entrances that the institution can use to increase the return on investment.

Types of strategies

Strategies to maintain the status quo (stability).
Expansion and growth strategy.
deflation strategy.
business strategy.
Cost leadership strategy
Excellence Strategy
focus strategy
functional strategy.
HR management strategy
Research and development strategy
Stability strategy:

Maintain current areas of work and proceed with the implementation of the plan 

The strategy as it was developed.

This strategy is appropriate for a successful organization operating in a stable and predictable environment.

It is characterized by relative stability compared to the results of the analysis during the period of developing the strategic plan (the stability of the internal and external environment of the institution).

Expansion and growth strategy:

Growth in the current field of work through, for example, horizontal mergers.

Growth by expanding into other areas, for example, vertical integration.

Suitable for an organization operating in a changing environment.

It is characterized by high positive aspects in the internal and external environment of the institution.

Contraction strategy:

Leaving a certain field of work in whole or in part through filtering or dormancy and latency for a period of time until the causes of pressure are removed.

The results of the strategic analysis are characterized by high negative aspects and a decrease in the positive aspects of the organization's internal and external environment.

Business strategy:

A business unit provides a special service or produces a specific product and has a special group of beneficiaries and customers.
It adopts strategies aimed at improving its image in front of the public and satisfying its needs in the sector to which the institution belongs.
Cost leadership strategy

Flexibility in the level of cost and quantities required:
Single-use of the service by the beneficiaries as in the passport service.
Providing the service without increasing the costs: such as prison services.
The use of raw materials of moderate cost does not affect the quality of the product.
Provide direction to the beneficiary to reduce the costs of intermediaries.
Elimination of high-cost activities.
Excellence Strategy

Creating the loyalty of customers or customers to the organization enables the organization to:
Meet the needs and desires of the beneficiaries.
Attention to the quality of service excellence and competitiveness.
Increasing the strength of the organization in the face of competitors.
Create barriers to prevent new competitors from entering.
focus strategy

A competitive strategy is directed at a targeted and limited sector, rather than dealing with the sector as a whole.
Take advantage of competitive advantage in the target sector by focusing on providing distinguished services or products in terms of quality or specifications.
Financial Strategy:

Determining the general framework for making the best financial decisions and actions.
Provides the institution a competitive advantage by providing the necessary budget.
Flexibility to increase sufficient financial support to achieve the strategy.
Balance and maintain adequate cash flow or liquidity.
HR management strategy

It deals with all matters related to human resources in the organization such as manpower needs planning, selection, recruitment, training, transfer, promotion, incentives, performance appraisal and others.
These strategies contribute to supporting the competitive advantage of the institution by providing highly skilled labor at an appropriate cost to increase productivity and quality.
In order to reduce costs and help the organization achieve its goals, the human resources department may resort to adopting a cost reduction strategy through the use of temporary workers.
Research and development strategy

Adopting a research and development strategy to keep pace with recent developments.
It aims to reduce the cost of operations and increase financial returns more efficiently.
It deals with improvement, development and innovation both in services and in operations.
It deals with the question of when and how to introduce new technology.