strategic management 1.ppt

7/29/2019 Strategic Management 1.ppt

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It is not the strongest of the species that survive, nor the

most intelligent, but the one most responsive to change.Charles Darwin


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Tomorrow always arrives. It is alwaysdifferent,and then even the mightiest

company is in trouble if it has not

worked on the future.


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Objectives are something to aim at, although they should be

regarded as a map grid reference rather than as a targetat

a rifle range. The company will not always find that the

shortest distance is a straight line, and may have to make

detours to avoid obstacles. But having made the detour it ispossible to come back to the grid reference from another

direction. Without a defined objective it becomes very

difficult to measure progress: having detoured the company

is likely to remain pointed in the wrong direction.


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Decision making in an Organization

Who ?

Why?

When?


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Concept Of Strategy


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Chandler(1962)Strategy is the determinator of the basic long-

term goals of an enterprise, and the adoption of courses of

action and the allocation of

resources necessary for carrying out these goals;

Mintzberg (1979) Strategy is a mediating force between the

organization and its environment: consistent patterns in

streams of organizational decisions to deal with theenvironment.

Prahlad (1993) Strategy is more then just fit and allocation of

resources. It is stretch and leveraging of resources

Porter (1996) Strategy is about being different. It means

deliberately choosing a different set of activities to deliver a

unique mix of value


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5 Ps of Strategy

1. A plan, a how do I get there

2. A pattern, in consistent actions over time

3. A position that is, it reflects the decision of the firm tooffer particular products or services in particularmarkets.

4. A ploy, a maneuver intended to outwit a competitor

5. A perspective that is, a vision and direction, a view ofwhat the company or organization is to become.


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Levels at which Strategy Operates


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Concept of Strategic Decision Making


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Strategic Management


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Strategic management is concerned with deciding onstrategy and planning how that strategy is to be put intoeffect. It can be thought of as having three mainelements within it . . . There is strategic analysis, in

which the strategist seeks to understand the strategicposition of the organization. There is a strategic choicestage which is to do with formulation of possible coursesof action, their evaluation, and the choice between them.Finally, there is a strategic implementationstage which is

to do with planning how the choice of strategy can be putinto effect


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The Elements


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The Latest Approach


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The Dynamic Process of formulation,implementation, evaluation and control ofstrategies to realize the Organizations

strategic intent


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Establishing the hierarchy of Strategic Intent

1 Creating and Communicating a Vision

2 Designing a Mission Statement

3 Defining the Business

4 Adopting the Business Model

5 Setting Objectives


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Formulation of Strategies

6 Performing Environmental Appraisal

7 Doing Organizational Appraisal

8 Formulating Corporate Level Strategies

9 Formulating Business Level Strategies

10 Undertaking Strategic Analysis

11 Exercising Strategic Choice

12 Preparing Strategic Plan


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Implementation of Strategies

13 Activating Strategies

14 Designing the Structure, systems and processes

15 Managing Behavioural implementation

16 Managing Functional Implementation

17 Operationalising strategies


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Performing Strategic Evaluation and Control

18 Performing Strategic Evaluation

19 Exercising Strategic Control

20 Reformulating Strategies


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Model of Strategic Management Process


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Critical Factors for Strategic Success


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What some people say about

strategy and strategic planning


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What some people say about strategy and strategic planning

Strategy is trying to understand where you sit in todays

world. Not where you wish you were and where you

hoped to be, but where you are. And its trying to

understand where you want to be. Its assessing the

competitive and market changes that you can capitalizeon or ward off to go from here to there. Its assessing the

realistic chances of getting from here to there.

Attributed to Jack Welch, CEO, General Electric


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The essence of strategic thinking is

creating a sustainable competitive

advantage.

M. Porter, The Economist, 23 May 1987


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Know the enemy and know yourself, in ahundred battles you will never be defeated.When you are ignorant of the enemy, but

know yourself, your chances of winning orlosing are equal. If ignorant both of yourenemy and yourself, you are sure to bedefeated in every battle.

Sun Tzu, Art of War, c.400 BC, page 107 of theWordsworth1993 edition, translation by Yuan Shibing


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Strategists do not reject analysis. Indeed they can hardly dowithout it. But they use it only to stimulate the creativeprocess, to test the ideas that emerge, to work out strategicimplications, or to ensure successful execution of highpotential wild ideas that otherwise never would be

implemented properly. Great strategies, like great works ofart or great scientific discoveries, call for technical masteryin the working out but originate from insights that arebeyond the reach of conscious analysis.

Kenichi Ohmae, The Mind of the Strategist, p. 4, Penguin 1984 edition


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It is a view of strategy that recognizes that a firm

must unlearnmuch of its past before it can findthe future. It is a view of strategy that recognizes

it is not enough to optimally position a companywithin existing markets; the challenge is to

pierce the fog of uncertainty and develop great

foresightinto the whereabouts of tomorrows

markets.

G. Hamel and C. K. Prahalad, Competing for the Future, p. 25,

Harvard Business School Press, 1996 edition


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Assignment


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Documenting the Growth Path

Tata Group - Identify Company Aditya Birla Group - Identify Company

Reliance - Identify Company

Godrej - Identify Company

TVS Group (Sundaram) - Identify Company Videocon

P& G (India)

HUL

CavinKare

ITC

Dabur

Shapoorji Pallonji

strategic management 1.ppt

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