What is Strategic Management? | From A Business Professor — Transcript

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1. 0:00hello everyone welcome to business
2. 0:02school 101 strategic management is
3. 0:04normally considered the Capstone topic
4. 0:06or course for management major students
5. 0:08for other business major students
6. 0:10Strategic Management can also offer a
7. 0:13big picture to analyze business
8. 0:14operations so what is Strategic
9. 0:16Management what are the benefits and
10. 0:18processes of strategic management in
11. 0:21this video I will discuss these
12. 0:23questions with you
13. 0:25section one what is Strategic Management
14. 0:28strategic management is the planned use
15. 0:31of a company's resources to reach its
16. 0:33goals and objectives Strategic
17. 0:35Management requires ongoing evaluation
18. 0:37of internal processes and external
19. 0:39factors that may impact how a company
20. 0:41functions companies of all sizes and in
21. 0:43all Industries can benefit from the
22. 0:45practice of strategic management from
23. 0:47the following perspectives number one
24. 0:49competitive Advantage Strategic
25. 0:52Management gives businesses an advantage
26. 0:54over competitors because its proactive
27. 0:56nature means your company will always be
28. 0:58aware of the changing market number two
29. 1:00achieving goals Strategic Management
30. 1:03helps keep goals achievable by using a
31. 1:06clear and dynamic process for
32. 1:07formulating steps and implementation
33. 1:09number three sustainable growth
34. 1:12Strategic Management has been shown to
35. 1:14lead to more efficient organizational
36. 1:16performance which leads to manageable
37. 1:18growth number four cohesive organization
38. 1:21Strategic Management necessitates
39. 1:23communication and goal implementation
40. 1:25company wide an organization that is
41. 1:28working in unison towards a goal is more
42. 1:29likely to achieve that goal number five
43. 1:32increased managerial awareness Strategic
44. 1:35Management means looking toward the
45. 1:37company's future if managers do this
46. 1:39consistently they will be more aware of
47. 1:41Industry Trends and challenges by
48. 1:44implementing strategic planning and
49. 1:45thinking they will be better prepared to
50. 1:47face future challenges
51. 1:51section 2 process of strategic
52. 1:53management for Strategic Management
53. 1:55there are generally five steps in the
54. 1:58process step one identifying Direction
55. 2:00the first step requires the organization
56. 2:03to have a clear vision and Direction
57. 2:05before developing plans a business
58. 2:07should determine its short and long-term
59. 2:09objectives the company will not have any
60. 2:12Clarity on processes and procedures
61. 2:14unless it sets its goals beforehand step
62. 2:16two analyzing resources an organization
63. 2:20must first arrange its resources to
64. 2:22carry out specific tasks to reap the
65. 2:24Strategic Management benefits for
66. 2:26example someone who excels at marketing
67. 2:28May struggle to manage the
68. 2:30organization's public relations hence
69. 2:32the management should assess its
70. 2:34resources and select the best one for
71. 2:36respective processes step 3 framing
72. 2:39strategies after selecting the best
73. 2:41resource for every process the
74. 2:43organization frames its action plan for
75. 2:45accomplishing the goal this strategic
76. 2:47planning consists of elements needed to
77. 2:49achieve the set objectives of
78. 2:51effectively the analysis assessment and
79. 2:53supervision of processes at every stage
80. 2:55help the business resolve issues whether
81. 2:58internal or external step 4 implementing
82. 3:01strategies following the strategy
83. 3:03development based on the organization's
84. 3:05objectives the next stage is to execute
85. 3:07them every business must train its human
86. 3:10resources from entry-level employees to
87. 3:12managers to ensure they fully understand
88. 3:14the process it will bring core
89. 3:16competencies into action within the
90. 3:18organization for the best possible
91. 3:20output step 5 evaluating Effectiveness
92. 3:23the review of strategies is the final
93. 3:25step in the process looking into each
94. 3:28aspect of the business during the
95. 3:30strategy formulation and implementation
96. 3:31helps the management identify the
97. 3:33efforts of every individual the
98. 3:35organization can recognize these efforts
99. 3:38through performance appraisal schemes
100. 3:39which are essential aspects of the
101. 3:41business
102. 3:43Section 3 an example let's use a car
103. 3:47manufacturer as an example to understand
104. 3:49the five steps of strategic management
105. 3:51step one identification a car
106. 3:54manufacturer named Stark Auto is
107. 3:57preparing to introduce a new model of
108. 3:58the electronic sedan to meet the
109. 4:00increasing demand for electronic
110. 4:02Vehicles they decide to implement
111. 4:04Strategic Management to ensure that the
112. 4:06product release goes smoothly
113. 4:08efficiently and successfully Step 2
114. 4:11analysis in the past Stark Auto's
115. 4:14electronic vehicles have suffered from
116. 4:16short Cruise range and poor Driving
117. 4:17Experience before designing their new
118. 4:20model they decided to run both internal
119. 4:22and external analyzes to check their
120. 4:24company's core strengths and weaknesses
121. 4:26as well as industry opportunities
122. 4:28threats and market trends for example
123. 4:31Stark Auto have to know what resources
124. 4:33they have which brands on the market are
125. 4:35its major competitors who are their
126. 4:37target consumers which core functions do
127. 4:40their Target customers care about the
128. 4:42most step 3 form formation Stark Auto
129. 4:45has a tough job as the design must meet
130. 4:47the consumers consistently changing
131. 4:49needs and desires and the process often
132. 4:51involves many revisions to find the
133. 4:53perfect fit the interior and exterior
134. 4:55must also be attractive and functional
135. 4:57to potential buyers while including
136. 4:59Innovative Technologies that make the
137. 5:01car newsworthy and competitive for
138. 5:03example to gain a competitive Advantage
139. 5:05Stark Auto should focus more on
140. 5:07increasing the cruise range and
141. 5:09improving the interior design to make
142. 5:11the new model more attractive
143. 5:14step 4 execution once the design and
144. 5:18Engineering specifications have been
145. 5:20checked the car manufacturing process
146. 5:22officially starts Stark Auto must
147. 5:24monitor the whole supply chain closely
148. 5:26to ensure all different parts arrived at
149. 5:28the plant at the right place and right
150. 5:30time it also must Implement management
151. 5:32strategies and sophisticated engineering
152. 5:35to make sure the manufacturing and
153. 5:37assembling process runs smoothly as we
154. 5:39know producing a car is not an easy job
155. 5:42for example Tesla's Model S uses over 2
156. 5:45000 purchased Parts which we Source
157. 5:47globally from over 300 different
158. 5:49suppliers it is extremely challenging to
159. 5:51manage a plant with so many business
160. 5:53partners to better execute the plan
161. 5:56Stark Auto has to work coordinately and
162. 5:58communicate effectively with all of its
163. 6:00suppliers step 5 evaluation when all the
164. 6:04stages of production have been completed
165. 6:06the fully assembled card then has to be
166. 6:08thoroughly inspected to ensure there are
167. 6:10no defects before sending it to car
168. 6:12dealerships this process also involves
169. 6:14checking for any imperfections or
170. 6:16inconsistencies with the exterior or
171. 6:18interior
172. 6:20section 4 summary let's wrap up today's
173. 6:24topic strategic management is the
174. 6:26ongoing planning monitoring analysis and
175. 6:29assessment of all Necessities an
176. 6:31organization needs to meet its goals and
177. 6:33objectives changes in business
178. 6:35environments will require organizations
179. 6:37to constantly assess their strategies
180. 6:39for success as the course introduction
181. 6:41this video just wants to give you a
182. 6:43brief idea about what strategic
183. 6:45management is and what core contents are
184. 6:47covered in the course you can find more
185. 6:49detailed content with explanations from
186. 6:52other videos in the playlist if you have
187. 6:54any questions regarding this video
188. 6:56please leave your thoughts in a comment
189. 6:58below I hope that you guys have enjoyed
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192. 7:04channel thanks for watching and I will
193. 7:06see you next time