What is Strategic Management?


➢Strategic management: what managers do to
develop the organization’s strategies
➢Strategies: the plans for how the organization will
do what it’s in business to do, how it will compete
successfully, and how it will attract and satisfy its
customers in order to achieve its goals
➢Business model: how a company is going to
make money (e.g., maximize profit)

Why is Strategic Management Important?
➢Should have a positive impact on performance
➢Helps managers decide how to act in face of
change and uncertainty
➢Helps complex and diverse organizations work
together

Step 1: Identifying the Organization’s
Current Mission, Goals, and Strategies
Mission: the statement of purpose of an organization
NYU—SPS Mission Statement:
Established in 1934, the NYU School of Professional Studies has fostered a rich
tradition of serving the City and the world, by providing educational experiences
that prepare students who are just beginning on their career path, as well as those
who are seasoned veterans. Through undergraduate and graduate degrees,
career advancement courses, certificate programs and diploma programs
that span a plethora of industry-related disciplines, the School has shaped the very
landscape of professionally oriented education. In the classroom, in the field, and
online, our programs have inspired the next generation of leaders, to innovate,
communicate, and succeed in a constantly changing world that offers limitless
opportunity.

Components of a Mission Statement

Component Question
Customers Who are the firm’s customers?
Market Where does the firm compete geographically?
Concern for Survival,
Growth, and Profitability
Is the firm committed to growth and financial
stability?
Philosophy What are the firm’s basic beliefs, values, and ethical
priorities?
Concern for Public
Image
How responsive is the firm to societal and
environmental concerns?
Products or Services What are the firm’s major products or services?
Technology Is the firm technologically current?
Self-Concept What are the firm’s major competitive advantage and
core competencies?
Concern for Employees Are employees a valuable asset of the firm?