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Module :
S.Duttagupta
Business Policy & Strategic Management
Session 1
Few definitions
A strategy is a long-term view of an organizations
commitments and actions to gain competitive
advantage using core competencies
The Strategic Management Process involves decisions
to achieve strategic competitiveness
Strategic competitiveness depends on a firms ability
to formulate and implement a value creating strategy
to earn above-average returns.
Competitive advantage is the ability of a firm to
outperform in cost or quality or productivity over its
competitors
Above average returns are returns more than
comparable investment at similar risks
Evolution Of Strategy
Inputs
Process
Output
Goods
Services
Man,
Money,
Material
Internal Climate
Cost + Profit
Feedback
External Environment
(PESTEL)
Resources
Capability
Competitive Advantage
An Attractive Industry
Strategy Implementation
Above Average Returns
Strategic Intent
Strategic Intent is the leveraging of a firms internal
resources, capabilities and core competencies to
accomplish the firms goals in a competitive
environment.
Vision- The passion and big picture of the
organization
ExamplesInfosys- "To be a globally respected corporation that provides bestof-breed business solutions, leveraging technology, delivered by
best-in-class people."
Tata Steel - We aspire to be the global steel industry benchmark
for Value Creation and Corporate Citizenship.
Definitions, Contd.
Mission: Statement of the firms reason for existence; its
unique purpose and the scope of its operations.
ExamplesInfosys - "To achieve our objectives in an environment of fairness,
honesty, and courtesy towards our clients, employees, vendors and
society at large."
Definitions, Contd.
Value-
Infosys -
Definitions, Contd.
ValueTata Steel
Our PEOPLE, by fostering team work, nurturing talent, enhancing
leadership capability and acting with pace, pride and passion.
Our OFFER, by becoming the supplier of choice, delivering
premium products and services and creating value with our
customers.
Our INNOVATIVE APPROACH, by developing leading edge
solution in technology, process and products.
Our CONDUCT, by providing a safe working place respecting the
environment, caring for our communities and demonstrating high
ethical standards.
Stakeholders:
Stakeholders are individuals and groups who can
affect and get affected by the strategic outcomes
achieved by the firm; and who have an enforceable
claim on firms performance.
Capital market stakeholdersSuppliers of capital goods
Product Market stakeholdersSuppliers of revenue goods
Organizational stakeholdersemployees, managers, non-managers
Strategy Vs Tactics
THANK YOU