Strategic Management

Session - 1
Course Objective:
• to develop necessary foundational skills required for understanding,
appreciating and designing strategy for competitive advantage in
organizational settings.
• learning to integrate strategy with other functions of organization.
 Evaluation Scheme
• Quizzes (6 Quizzes – 2 Announced, 4 Unannounced)* : 20%
• Class Participation : 10%.
• Term Case Study Write Up : 10 %
• Term Case Study Presentation : 10%
• Mid-Term : 25%
• End-Term : 25%

*Best 4 to be considered for computation of final grades

Worked on Strategy ? Already ?
• Projects, Assignments
• Internships ?
Demystifying Strategy
• Not everything is strategy;
• Strategic threads and not Strategy!
What does Strategy Mean to You ?
• Some Jargons ?
• Name of Business Leaders?
• Large Consulting Firms ?
• Academicians / Business Gurus ?
 The Origin of Strategy
• Strategy comes from the Greek word strategos, which is formed from
stratos, meaning army, and –ag, meaning to lead.
• Also referred as – the art of the general
A comprehensive SM Model
What is included and excluded from strategy
Strategic Analysis
The key is not in following a • Industry Analysis
• Customer/marketplace trends
sequential process, but rather
• Environmental forecast Choices about
in achieving a robust, • Competitor analysis internal
reinforced consistency among • Assessment of internal strengths,
weaknesses, resources organizational
the elements of the strategy
arrangements
itself. It is not a linear
are not part of
process.
strategy
Supporting
Strategy
Organisational
The central
integrated, Arrangements
Mission • Structure
Objectives externally • Process
• Fundamental
• Specified oriented • Symbols
Purpose
Targets concept on • Rewards
• Values
how we will • People
Mission and objectives stand achieve our • Activities
apart from and guide strategy. objectives • Functional
policies and
profiles
The elements of Strategy
• Arenas: where will we be active?
• Vehicles: how will we get there?
• Differentiators: how will we win in the market-place?
• Staging: what will be our speed and sequence of moves?
• Economic logic: how will we obtain our returns?
 Where will we be active?
The STRATEGY DIAMOND • Which product categories?
• Which market segments?
• Which geographic areas?
• Which core technologies?
• Which value-creation stages?

Arenas

What will be our speed and How will we get there?

sequence of moves? • Internal development?
• Speed of expansion? Economic
Staging Vehicles • Joint ventures?
• Sequence of iniatives? Logic
• Licensing/franchising?
• Acquisitions?

How will we obtain our returns? Differentiators

• Lowest costs through scale advantages?
• Lowest costs through scope and How will we win?
replication advantages? • Image?
• Premium prices due to unmatchable • Customisation?
service? • Price?
• Premium prices due to proprietary • Styling?
product features? • Product reliability?