Syllabus
Section I -Unit 1
Introduction to Strategic Management Concept of Strategy, Definition, Scope and Importance Central Concepts in Strategic Management Collecting Information on an External Environment Deciding the Scope of an Organisation
Match External Opportunities and Threats Deciding the Investment Patterns for Future Nature of Strategic Management Scope and Importance of Strategic Management Strategic decision making Process of Strategic Management Levels at which strategy operates Role of a Strategist
Strategic Management
R. Srinivasan
Strategic Management
Francis Cherunilam
Charles W. L. Hill
Gareth R. Jones
Fifth Edition
Concept of Strategy
The word strategy is derived from the Greek word strategia means the art and science of directing military force Strategy is a plan or course of action, which is of vital, pervasive, or continuing importance to an organisation as a whole Emergence of Strategy is a major component of management Strategy is the means used to achieve ends (objectives)
Chakra - Vyuuh
Chakra - Vyuuh
The Chakravyuha was specially difficult to penetrate since the attacker is not able to focus on a still target in front as the targets keep changing with the rotation of the Chakras. Even if an attacker can penetrate one ring and get inside the Chakravyuha, the rotating nature of the vyuha makes sure that the ring he has penetrated closes behind him. As a result, the attacker is trapped within the Chakravyuha.
Chakra - Vyuuh As it is said in the Mahabharat, only 4 people; Abhimanyu, Arjuna, Krishna and Pradyumna; knew how to breach this formation.
Since Ved Vyas, who recited the great epic, himself did not know the secret, how could he mention how it was supposed to be done in the story.
Garuda - Vyuuh
Definition
A Strategy is a unified, comprehensive and integrated plan that relates the strategic advantages of the firm to the challenges of the environment.
Definition
A Strategy is a unified, comprehensive and integrated plan that relates the strategic advantages of the firm to the challenges of the environment.
Overview
What is strategy?
An action a company takes to attain superior
performance.
Strategic Planning
Rational planning by top management
Basic Strategic Planning Model
Defining the Mission and Setting Top-Level Goals External Analysis of Opportunities and Threats Internal Analysis of Strengths and Weaknesses Selection of Appropriate Strategies Implementation of Chosen Strategies
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Definition of Strategy
Strategy is the direction and scope of an organisation over the long-term which achieves advantage for the organisation through its configuration of recources within a challenging environment, to meet the needs of markets and to fulfol stakeholders expectations Johnson & Scholes
Orientation of Strategy
What is our business? What should it be? What are our products and markets? What can our firm do to accomplish objectives?
environmental parameters?
How do we stay clear of the threats posed by the
environment?
Orientation of Strategy
Strategic Management Ambiguity Complexity Non-routine Operational Management Routined
Operationally specific
Small-scale change
Strategic Management
Strategic Management
Strategic Management refers to the managerial
process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy and then over time initiating whatever
Major goals
Specify what the organization hopes
Secondary goals
Are objectives to be attained that lead to superior
performance.
External Analysis
Identify strategic opportunities and threats in the operating environment.
Immediate (Industry)
Macroenvironment
National
Internal Analysis
Identify strengths
Quality and quantity of resources available
Distinctive competencies
Identify weaknesses
Inadequate resources
Managerial and
organizational deficiencies
Strategic Choice
Business Functional Global Corporate
Business-Level Strategies
Cost leadership
Attaining, then using the lowest total cost basis as a
competitive advantage.
Differentiation
Using product features or services to distinguish the
Functional-Level Strategies
Focus is on improving the effectiveness of operations within a company.
Manufacturing Marketing
Materials management
Research and development Human resources
Global-Level Strategies
Multidomestic International Global Transnational
Corporate-Level Strategies
Vertical integration Diversification Strategic alliances Acquisitions New ventures Business portfolio restructuring
Strategy Implementation
Designing organizational structure Designing control systems
Market and output controls Bureaucratic controls Control through organizational culture Rewards and incentives
Controls
Structure
Strategy
Functional
Strategic Managers
General managers
Responsible for the overall (strategic) performance
Operations managers
Responsible for specific business
functions or operations.
Strategic Leadership
Vision, eloquence, and consistency Commitment to the vision Being well informed Willingness to delegate and empower Astute use of power Emotional intelligence
emergent strategies.
commitment to an action.