Strategic Management

µ .Joel Ross and Michael Kami .´Without a strategy the organization is like a ship without a rudder.

What is a strategy? The word strategy comes from the Greek word ´Strategiaµ . Alfred Chandler defined strategy as ¶the determination of the basic long-term goals longand objectives adoption of of an courses enterprise. which means art & science of directing military. and the of action and the allocation of resources necessary for carrying out these goals .

What·s the company·s present situation? 2. How should it get there?  A company·s answer to ´how will we get there?µ is its strategy .Thinking Strategically: The Three Big Strategic Questions 1. Where does the company need to go from here? 3.

objectives.What is Strategic Management? Strategic decision Management & actions of an is the stream to strategy of the or which effective lead development strategies to help achieve corporate objectives. It includes an analysis of internal and external environment with a view to explore opportunities and avoid threats .

Evolution of Strategic Management Ansoff··s Strategic Success Model Henry Mintzberg Technique Peter Drucker·s Contribution Michael Porter: Strategy & Competitive Advantage .

Rational or Opportunistic Strategy .between 1948-68 1948- Acquisations .Ansoff Strategic Success Model The systematic study was pioneered by Igor Ansoff .

Following are the elements of Ansoff Model: No universal success formula Strategy depends on of turbulence level Success depends jointly depends on different capabilities of the firm .

He considered strategy Formulation as a deliberate.Henry Mintzberg Technique He brought the personal side of the manager into the picture. delicate and dangerous process . (1973) A humane approach to strategy formulation was advocated by him.

Peter Drucker He introduced the concept of MBO According to Drucker. it is an attitude of managingµ . ´MBO is more than a technique of management.

cost leadership & product differentiation Five force model and of value competitive chain was Advantage introduced .Michael Porter: Strategy and Competitive Advantage He introduced Generic Strategies like Focus.

Process of Strategic Management Strategic management process can be described the long as a run set of managerial and decisions and actions which determines direction performance of organization .

Environment Scanning Evaluation and control Strategy Formulation Strategy Implementation .

functional Strategies Strategy Evaluation and selection Strategic Control System Feed back Feed back Feed back Feed back .Strategy Formulation Objective Setting process Establishing organizational Policy Competitive Analysis Establishing long range and short Environment Define Organization mission Internal organizatio n analysis Scanning range objectives Strategy Implementation Strategy Selection Process Structure. Strategy and leadership Identifying Strategic Alternatives Developing Budget.

are those that help a superior ¶fit· between organization and achievement of strategic goals .Purpose of Strategic Management Process Strategic Management Process basically aims at formulating and implementing effective Strategies Effective Strategies. of course.

Purpose of Strategic Management Process« Core Competencies Synergy Creation of Value for the customers .

Strategic Management Steps Formulate the vision and mission of the company Internal Analysis External Analysis Analyze company·s options by matching its resources with the demands of external environment .

people. technologies and reward system is emphasized Evaluate success of strategic process . structures.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.

Need for Strategic Management EverEver-changing environment Over reliance on experience may prove to be costly More reliance has to be placed on creativity. innovation and new ways .

Levels of Strategic Management Corporate Level Business Level Functional Level .

Components of Strategic Management Vision Mission Profile of the company External Environment Strategic Analysis and Choice Long term objectives Annual Objectives Policies Institutionalizing Strategy .

Competitive Business Strategies Attack Strength Strategy Attack Weakness Strategy Bring Change to a failing company Concentration of forces Forging Strategic alliance Patience and Time Control the choke-point A combat ready company .

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