TECHNOLOGICAL INSTITUTE OF

CIUDAD MADERO
Á lvarez Castillo José Tomas 13071735

Eng. In Business Management

STRATEGIC MANAGEMENT

MGA Lorena de León Buddha

INTRODUCTION
There are many ways on how to manage a company, whether it is a micro
or macro company. Managing is not only running a company, but it also has to be
administered and managed. You have to know the main elements of management,
what function each one has and where it applies. You have to know the ways in
which a company is going to be managed, what way it is going to be, how it is
going to be applied, where it is going to be applied, when it is going to be applied,
etc. Know what resources we have to be able to carry out this management. Also
in management they cover systems that are ways of studying the company in its
environment.
Next in this work we will talk about the concept of managing, where it is
most applied and where this method influences. We will learn about the theories
that are used, and which theorists have contributed their knowledge to this field of
management. We will also know what elements influence management such as
direction, planning and determination.
This will help us a lot when we are in the workplace and when we are in
charge of a company or organization, how we should work, the ways of directing a
group of people, ensuring that everyone works in an environment of trust and that
there is no rivalry. between the leader and the workers. Know what can be
improved in the company, and what techniques should be used in the case of
competitive companies, how to surpass those companies to achieve first place.
First of all we must know the meaning of strategic management.
We will know the meaning of management:

Management:

Management refers to the action and consequence of administering or

managing something . In this regard, it must be said that managing is carrying out
procedures that make it possible to carry out a commercial operation or any desire
.

Main concepts

 Planning, organizing, directing, controlling + resources fall into the branch of

managing.
 Optimization together with the others fall into the branch of administering
and management.
 Applications of strategies, tools and techniques with all these steps we
achieve what it is to manage.
What is strategy?

Strategy:

A strategy is a set of actions that are carried out to achieve a certain goal.
Strategy is the determination of long-term objectives and the choice of actions and
the allocation of resources necessary to achieve them.

The contents of the strategy are composed of:

 Current situation and objectives = Opportunity

 Audiences and strategies = Plan
 Contents and tactics = Execution
 Promotion and analysis = Conversion

In general, Strategic Management is:

Method that integrates short-term forecasts with daily management. It is

very popular today and widely used in the business field. Strategic management is
the art and science of formulating, implementing and evaluating decisions of
different functionalities that will allow organizations to achieve their objectives. It is
the process of specifying the objectives of organizations, developing policies and
plans to achieve those objectives, and allocating resources to implement those
policies and plans. Strategic management, therefore, combines the activities of
various functional areas of an organization to achieve organizational objectives. It
is the highest level of managerial activity.

The main concepts of management are the following:

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 MANAGE
MANAGE

Content Strategy has been described as “the practice of planning content

creation, delivery and governance” and “a cyclical system that completely defines
the process of developing editorial content for web development projects.” Rachel
Lovinger described the goal of Content Strategy as using “words and data to create
unambiguous content that produces meaningful and interactive experiences”
(“Content Strategy: The Philosophy of Data,” article published in 2007). Lovinger
added the analogy “content strategy is to writing what information architecture is to
design.”
Strategists strive to make their content readable and understandable,
findable, actionable, and redistributable in every way possible.
The objective of Content Strategy has also been described as achieving the
business's communication objectives, maximizing the impact of the messages.
In addition, it has also been recalled that the content strategist assumes the
role of trend hunter or curator of the information background of the organization for
which he works. Like the artistic curator of museum exhibits, the curatorial
strategist sifts and identifies key pieces of archived content that can be combined
differently to create new meaning and generate interesting stimuli.

UNIT 1:
FUNDAMENTALS OF STRATEGIC MANAGEMENT

1.1 The Organization as a

System
There is a wide variety of
organizations: industrial, commercial
companies, service organizations
(banks, universities, hospitals, transit,
etc.), military, public, which can be
oriented towards the production of goods or products; These exert pressure on the
lives of individuals and are an integral part of the environment where man works,
recreates, studies, and satisfies his needs.

In a company, the elements that make it up must be analyzed:

• Human Resources.
• Material resources.
• Technical resources.

Organizations as systems are a whole, they must be viewed as systems and

a system is a set of interacting elements that requires the environment for its
needs.

An organization is defined as: a system of consciously coordinated activities

formed by two or more people. Cooperation between them is essential for the
existence of the organization.

TYPES OF SYSTEMS

OPEN SYSTEM
An open system must know how to interact with the environment to move
forward, it needs its resources and help from the environment, it cannot be
isolated, it must change and adapt continuously. An open system cares
about what happens to its customers, suppliers and competitors; He is not
afraid of change.
 SYSTEM CLOSED
They have few inputs and outputs in relation to the external environment,
which are well known and have a cause and effect ratio: a given input
(cause) is followed by a given output (effect). Also called mechanical or
deterministic.

There is no totally closed system, nor a totally open one. Every system
depends to some extent on the environment. The Organization as an open
system is old.

A system consists of four primary elements:

 Tickets.
 Prosecution.
 Departures.
 Feedback.

1.2 Origin and Development of Strategic Thinking

CREATION AND ORGANIZATION

REALIZATION

EXAMINATION DETERMINATION
AND
REFLECTIVE
 According to Porter in 1987, the difference between strategic thinking and
strategic planning is the decline of formulaic planning in the previous decade.

1.3 Basics and features

 Strategy formulation
 Internal audit
 Operational planning and tactical planning
 Short-term, medium-term and long-term plans
 Policies
 Business Strategy and Corporate Strategy
 Strategic diagnosis
 Mission
 Vision
 Strategies
 Action plans
 Goals
 Competitive position
 Competitive advantage
 Market segmentation

Characteristics of strategic management.

Strategic Control

It is a system that establishes reference points, rules, methods and devices to

measure congruence, progress, efficiency, effectiveness and effectiveness in
achieving strategic goals and also allows for a better understanding of crises.

Strategic control is a special type of organizational control that aims to monitor and
evaluate the strategic management process to ensure its proper functioning.
Strategic control is aimed at ensuring that all planned results throughout the
strategic management process come true.
The Strategic Control System answers
the three key questions of senior
management in the life of any
organization in both the public and
private sectors.

1. What do we have?
2. What are we going to do?
3. How and with whom will we do it?

Planning

It is possible to highlight the essential nature of

planning by examining its four main aspects:

1. Your contribution to the purpose and objectives

2. Its primacy among the manager's tasks
3. Its generalization, and
4. The effectiveness of the resulting plans.

Planning process

Within the planning process, there are 4 principles

that help the development of a practical science of planning.
• Limiting factor principle
• Principle of commitment
• Principle of flexibility.
• Beginning of navigational change.

Organization

It is the action of establishing an intentional structure

of roles for people to occupy an organization.

For an organizational role to exist and be meaningful for individuals, it must

incorporate:

1) Verifiable objectives that constitute a central part of planning,

2) A clear idea of the main duties or activities,
3) An area of discretion or authority so that whoever performs a function knows
what they must do to achieve objectives.

Address

Direction is the function of managers that involves the process of influencing

human beings so that they contribute to the achievement of organizational and
group goals. Management is the face-to-face supervision of employees in the daily
activities of the business. The manager's efficiency in management is an important
factor to achieve.

Adaptive strategies serve to respond to the changes that are

currently occurring in the environment and that are part of our
reality. Anticipatory strategies serve to be promoters of change
and make the competition have to change at the pace that we
impose.

1.4 Comparison of strategic management models

Anticipatory strategies serve to be promoters of change and make the

competition have to change at the pace that we impose.

Adaptive strategies serve to

respond to the changes that are
currently occurring in the
environment and that are part of our
reality.
 Comparison between strategic models

1.5 Importance and benefits of strategic decisions

Decision making encompasses the four administrative functions, so when

managers plan, organize, lead and control, they are often called decision
makers.

The importance of information in decision making is evident in the definition

of decision proposed by Forrester, meaning "the process of transforming
information into action."
 Stages in the decision-making process :

Stage 1.- Identification of a problem.

Step 2.- Identification of the criteria for decision making.
Step 3.- Assigning weights to the criteria.
Step 5.- The development of alternatives.
Step 5.- Analysis of the alternatives.
Step 6.- Selection of an alternative.
Step 7.- The implementation of the alternative.
Step 8.- Evaluation of the effectiveness of the decision.

In the field of strategic management, three styles have dominated the scene
in the last three decades and have emerged as a development of
contemporary management theory in response to the social and economic
conditions of their time.

The planning style , in which a predictable future was based on the

analysis of the probable (1970-1983).

The visionary style , in which an unpredictable future was based on the

imagination of the possible (1984-1991).

The learning style , in which an unknown future suddenly appears and we

face it based on the understanding of the current (1992-2000?).

1.6 Thought and philosophy of the Company

The Philosophy of Business analyzes the fundamental principles that

underlie the formation and activity structures of business organizations, to
provide a practical response to conflicts that arise in the nature and purpose
of business.
 The object of study of Business Philosophy is interesting for business
managers, designers and directors, but also for other workers, since it
addresses issues of organization, communication, ethics and organizational
economic policy.

Company philosophy:
 Central Ideology
 Mission
 Vision
 Policy
 Rules
 Rules

 Conclusions:
As we already saw in this work, strategic management benefits many of us when
running a company, we must be aware and know well what decision we are going
to make in order to continue. Also that we have to work hard and set a goal as a
company to be able to reach it.

We saw that management is the action and the consequence of administering or

managing something and strategy is a set of actions that are carried out to achieve
a certain goal. In short, strategic management is planning our goals to be able to
reach them and fulfill them. , knowing how to organize ourselves to be able to carry
it out.

The work mentions the main concepts to be able to carry out good planning, which
are:
  Planning is preparing or establishing the plan according to which
something is to be developed, especially an activity.
 Organizing is preparing something, thinking carefully about all the
details necessary for its proper development.
 Direct, generate a vision to ensure that workers continue to
efficiently carry out their operations in the organization.
 Control + resources knowing how to manage all the raw materials
or resources that we have available to achieve a good result.

On the origin and development of strategic thinking, Porter said in 1987 that “it is
the decline of the previous decade of planning through formulas.”

And the most important thing for a company to reach the goals it has contemplated
is to follow its norms and philosophical thoughts of its company, which are the
mission, vision, policies and values.