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 ´Without a strategy the
organization is like a ship without
a rudder.µ
- Joel Ross and Michael Kami
 What is a strategy?
 The word strategy comes from the Greek word -
´Strategiaµ ; which means art & science of
directing military.

 0lfred Chandler defined strategy as ¶the

determination of the basic long
long--term goals
and objectives of an enterprise, and the
adoption of courses of action and the
allocation of resources necessary for carrying
out these goals
 Thinking Strategically:
The Three Big Strategic Questions

1. What·s the company·s present situation?

2. Where does the company need to go from

here?

3. How should it get there?

  0 company·s answer to ´how

will we get there?µ is its strategy
 What is Strategic
Management?
 Strategic Management is the stream of
decision & actions which lead to the
development of an effective strategy or
strategies to help achieve corporate objectives
objectives..

 It includes an analysis of internal and

external environment with a view to explore
opportunities and avoid threats
 åvolution of Strategic
Management

 0nsoff··s Strategic Success Model

 Henry Mintzberg Technique

 Peter Drucker·s Contribution

 Michael Porter: Strategy & Competitive

0dvantage
 0nsoff Strategic Success
Model

 The systematic study was pioneered by

Igor 0nsoff between 1948 68

 0cquisations Rational or Opportunistic

Strategy
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 Henry Mintzberg
Technique
 He brought the personal side of the manager
into the picture. (1973)

 0 humane approach to strategy formulation

was advocated by him.

 He considered strategy ´ormulation as a

deliberate, delicate and dangerous process
 Peter Drucker

 He introduced the concept of MBO

 0ccording to Drucker, ´MBO is more

than a technique of management, it is
an attitude of managingµ
 Michael Porter: Strategy and
Competitive 0dvantage

 He introduced Generic Strategies like

´ocus, cost leadership & product
differentiation

 ´ive force model of competitive

0dvantage and value chain was
introduced
 Process of Strategic
Management

Strategic management process can be

described as a set of managerial
decisions and actions which determines
the long run direction and
performance of organization
 ånvironment
Scanning

åvaluation Strategy
and control ´ormulation

Strategy
Implementation
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 Purpose of Strategic
Management Process
 Strategic Management Process basically
aims at formulating and implementing
effective Strategies

 åffective
Strategies, of course, are those
that help a superior ¶fit· between
organization and achievement of
strategic goals
 Purpose of Strategic
Management Process«
 Core Competencies

 Synergy

 Creationof Value for the

customers
 Strategic Management
Steps
 ´ormulate the vision and mission of
the company

 Internal 0nalysis

 åxternal 0nalysis

 0nalyze company·s options by

matching its resources with the
demands of external environment
 Identify the most desirable options

 Select a set of long term objectives

 Develop annual objectives and short term

strategies

 Implement Strategic choices by means of

budgeted allocation of resources in which
matching of task, people, structures,
technologies and reward system is
emphasized

 åvaluate success of strategic process

 Need for Strategic
Management
 åver
åver--changing environment

 Over reliance on experience may

prove to be costly

 More reliance has to be placed on

creativity, innovation and new
ways
Mevels of Strategic
Management
Corporate
Mevel

Business Mevel

´unctional Mevel
Components of Strategic
Management
Vision

Mission

Profile of the company

åxternal ånvironment

Strategic 0nalysis and Choice

Mong term objectives

0nnual Objectives

Policies

Institutionalizing Strategy
Competitive Business
Strategies
0ttack Strength Strategy

0ttack Weakness Strategy

Bring Change to a failing company

Concentration of forces

´orging Strategic alliance

Patience and Time

Control the choke-point

0 combat ready company