Strategic Management

Compiled and Presented by: Ms. Kumkum Bharti

Strategic Management

Meaning of Strategy Meaning of Strategic Management Concept of Strategic Management SM Process Mission and Objectives Linking SM with Management Ethics and Social Responsibility

Strategic Management- Meaning and Process

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Meaning of Strategy

Strategy narrowly defined, means: the art of the general (from Greek stratagos). It is the art of employing all elements of your resources to accomplish your objectives. Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value. Strategy is defined as, large scale, future oriented plan for interacting within the competitive environment to optimize achievement of the companys goals.
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Meaning of Strategic Management

It is a set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of an organization.

Strategic Management- Meaning and Process

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Meaning of Strategic Management

1998: The process through which organizations analyze and learn from their internal and external environments, establish strategic direction, create strategies that are intended to help achieve established goals, and execute these strategies, all in an effort to satisfy key organizational stakeholders.

Strategic Management- Meaning and Process

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Views of Different School of Thoughts

The Design School The Planning School Positioning School Entrepreneurial School Cognitive School Learning School Power School Cultural School Environmental School Configuration School
Strategic Management- Meaning and Process 4/17/2012

Strategic Management Process

4 PHASES:
I.

II.
III. IV.

Establishing the Hierarchy of Strategic Intent Formulation of Strategies Implementation of Strategies Performing Strategic Evaluation and Control

Strategic Management- Meaning and Process

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Hierarchy of Strategy
.

VISION

MISSION OBJECTIVES

Strategic Management- Meaning and Process

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Strategic Management Process

1.
1.

Establishing the hierarchy of strategic intent:

Creating and Communicating a Vision Few Terminologies Designing a Mission statement Defining the Business Setting Objectives

2. 3.

4.

Strategic Management- Meaning and Process

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Strategic Management Process

2.
1.

Formulation of Strategies
Performing Environmental Appraisal (Environmental Factors) Doing Organizational Appraisal Considering Corporate Level Strategies Considering Business Level Strategies Undertaking Strategic Analysis Exercising Strategic Choice Formulating Strategies Preparing a Strategic Plan

2. 3. 4. 5. 6. 7.

8.

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Strategic Management- Meaning and Process

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Strategic Management Process

Implementation of Strategies:
1.

2.
3. 4. 5.

Activating Strategies Designing Structures and Systems Managing Behavioral Implementation Managing Functional Implementation Operationalising Strategies

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Strategic Management- Meaning and Process

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Strategic Management Process

Performing Strategic Evaluation and Control

1.

2.
3.

Performing Strategic Evaluation Exercising Strategic Control Reformulating Strategies

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Strategic Management- Meaning and Process

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Few Terminologies
1.

2.

3.

4.

Strategic Choice: is a management function of making choices and decisions that will affect the future of the organization. Vision: is a long term perspective of what is the final destination of the organization. Mission: is the founders intentions at the outset of the organization-what they wanted to achieve. Strategic Analysis: is the technique of analysis required to form a view on the key factors that will have an effect on the future well being of the organization.
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Few Terminologies

Strategic Objectives: are the goals of the whole enterprise and reflects the firms aim.

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Strategic Management- Meaning and Process

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Conceptual Model of Strategic Management Process ESTABLISHING STARTEGIC INTENT Vision, mission, business definition and objectives FORMULATION OF STRATEGIES Environmental appraisal organizational appraisal SWOT Analysis Corporate level strategies Business level strategies Strategic choice Strategic plan STRATEGY IMPLEMENTATION Project Procedural Resource allocation Structural Behavioral Functional and operational
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S T R A T E G I C C O N T R O L

STARTEGIC EVALUATION Strategic Management- Meaning and

Process

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WORKING MODEL OF STRATEGIC MANAGEMENT PROCESS

Strategic Intent

SWOT Analysis

Strategic Alternative s

Strategic Analysis & Choice

Strategy Implement ation

Strategic Evaluation

Strategic Control

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Mission and Objectives

???

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Environmental Factors
1.

Economic Environment

Natural Resources Level of Economic Development Social Infrastructure Population Literacy Rate GDP Monetary and Fiscal Policy Wage and Salary Levels Climate Membership in Regional Economic Blocs
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Environmental Factors

Nature of Competition Currency Convertibility Inflation Taxation System Interest Rates

2.

Legal Environment
Effectiveness of Legal System Treaties of Foreign Nations Patent Trademark Laws Laws affecting Business Firms

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Strategic Management- Meaning and Process

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Environmental Factors
3.

Political Environment

Form of Government Stability of Government Political Ideology Social Unrest Governmental Attitude Towards Foreign Firms Foreign Policy

4.

Cultural Environment

Language Motivations Religious beliefsLecure 2.ppt

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