Strategic PlanningIntroduction

Management plan for future growth in business Its objective to insure-the business moves in right direction Click be an Master subtitle style It has turned to to edit important component for corporate Objective-profit maximization & planning for it. Meet new challenges & complete the changes in internal & external environment.

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Strategic Planning & modern modern industrial system System Strategic planning adopts changes in

From 19tH century to date industrial firms emerged as major economic institutions (corporate) which was blessing of strategic planning. Click to edit Master subtitle style First 3 decades of 20 Th century automation & mass production resulted in to cheaper products Consolidation of large units required strategic management. High volume production is the result of strategist management. For users it was a low price effect

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Major Environmental Changes 1920 and later was the era of major environmental changes.
Changes in technology R&D & automation Political andto edit Master subtitle style Click governments policy (liberalization) Emergence of new corporate. Low price high volume standardized products. Market thrust and segmentation raised. Industry- larger choice for investment. Risk factor also emerged. Orientation was adopted. Commanded larger resources and gain newer skills 3/30/12

Study of Strategic Management

Set of managerial decisions and actions that determine the long run performance (LRP). Click to edit Master subtitle . It includes environmental scanning style It is strategy formulation, its implementation, evaluation and control. The study is for proper monitoring and evaluation of external opportunities and threats. The corporate threats & weaknesses are also evaluated. It is field of study in integrative emphasis on environment and strategy. 3/30/12

Four phases of strategic Mgt

1.Basic Financial Planning 1.1 Finance is the most scarce comodity. 1.2 Seriousness of Master subtitle style Click to edit financial planning-budget 1.3 Sales & marketing people to provide adequate information. 1.4 very little analysis of project 1.5Strategic Management to be simple. 1.6 It is time consuming but has to be followed

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4-phases
2. Fore cast based planning 2.1 Annual budget less useful if long term planning is adopted. 2.2 Managers propose 5 yr plan. 2.3 plan projects for more than one yr. 2.4 Managers scan internal and external environment for perfection in data. 3/30/12

4-phases
3. Externally Oriented Strategic Planning 3.1 Highly political-5 yr plan has to be taken 3.2 Top management takes control by strategic planning. Click to edit Master subtitle style 3.3 More response to changing market and competition 3.4 Higher level managers perform it. 3.5 Consultants and high level military persons also provide data. 3.6 Implementation transferred to lower level. 3.7 More dependence on consultants and less involvement of managers. 3/30/12

4-phases
4. Strategic Management 4.1 The best strategic plan is useless unless the bottom level managers provide input and commitment. 4.2 Top management create group of managers. 4.3 Key employees form different groups.
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4.5 They develop key strategic plan

Advantages of strategic Management

Those who adopt perform better than others Has positive impact on its organizations performance. As: ambassador,and fiat cars failed where maruti and others progressed The tv industry faced problems. Provides clearer sense of strategic vision for the corporate.
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Sharper focus on what is strategically

Questions to be asked by corporate

Where is the organization today? If the changes are not made , where the organization be after one, two or----10 years ? Are the answers acceptable ? If not , what actions should the management take ? What are risk and pay off (fund) involved ? (proper mission and vision statement 3/30/12 is only obeyed if there is proper

Impact of globalization

After liberalization (1991)globalizationbecame important. Entire globe started vibrating at a higher frequency in terms of business. Has changed the way of modern business. To compete , high volume, lower price,-using modern technology 3/30/12 turned the system of strategic

Impact of Electronic Commerce

It is a business through internetfaster Lesser overhead expenses and avoids cut by intermediaries. Direct sales. Internet will transform the Strategic Management to a greater extent. B to B business is going to adopt internet rout. 3/30/12

continued--------- impact--

The pace of business increasing drastically. Knowledge is becoming a key asset and a source of competitive advantages. As; 1980-us manufacturing firm market value of physical asset was 62.8% and in 1991 it came down to 37.9%, the remainder was 3/30/12 intellectual capital and intangible

Organizational Adaptation (Theory)

Globalization and e-commerce presents real challenges to the SM. Keeping track on changing technological, economic, political, legal and sociological trend s is difficult to maintain by each firm. Population-ecological theory says that once an organization is successfully established in a 3/30/12 particular environment , it is unable

Theory----------

Institutional theory-in contrast it proposes

that organizations can and do adopt to changing conditions by imitating other successful organization (follow the leader) strategic Choice prospective- not do only organizations adopt to changing environment but they also have the 3/30/12 opportunity & power to re-shape their

Creating a Learning organization

An organization skilled at creating, acquiring, and transforming knowledge and modifying behavior to change. It is a critical component of competitiveness in a dynamic environment. Innovation and new product development is real learning process 3/30/12 moving organization. in a

Creating--------------------

Skill to cover four main activities.

1. Solving problem systematically. 2. Experimenting with new approaches. 3. Learning from past 4. Transferring knowledge quickly to org.
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Organization working to experiment

Basic Model of Strategic Magmt.

4 basic elements of strategic management

Environmental scanning Strategy formulation Strategy formulation Strategy implementation Evaluation and control The details follows------------3/30/12

Environmental scanning

It is monitoring , evaluating, and dissemination of information from the external and internal environments to key people within the corporate. Its purpose is to identify strategy related factors which determines the future of the corporate. Simplest way to conduct it is using 3/30/12 SWOT analysis.

Strategy Formulation

It is developing LRP for effective management of environmental opportunities and threats in line to corporate SWOT. It includes the corporate mission, specifying achievable objectives, developing strategies, and setting policy guide lines.
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Mission

It is purpose for org. existence. It acts as a business card which speaks of the services or product it is providing to the society. A well defined mission statement explains the fundamental, unique purpose (objective) that sets the corporate apart from others in terms of its type, operation, services.
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It may also include firms philosophy

Objectives

It is the end result of planned activity. It states what is to be accomplished , by when and how much. The achievement of the objective must co-relate to the mission. Term goal is interchangeable to term objective but for our use-goal is general statement without 3/30/12 quantifying it and is open ended.

3-types of strategies
The strategy of a corporate forms a comprehensive master-plan to clearly arrive at how the mission & objective will be achieved.
1.

Corporate strategy-it is corporate overall plan covering attitude for growth, management of various businesses and product-line. It covers-stability, growth and downsizing and economic and competitive drive. Decision about takeover and merger are also important 3/30/12

Cont---------3. Functional strategy-strengthening the functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity. In this the process of using competitive advantage becomes more significant. The action in the form of R&D and bridging the technological gap is important as it provides a competitive edge to the corporate. Mainly in the area of telephony, It sector and entertainment area the fast changing 3/30/12 nature of technology has become more