Unit-5-Strategic Management

STRATEGIC MANAGEMENT
Sumathi devi
What are the foundations of strategic
competitiveness?
 Basic concepts of strategy:

– Competitive advantage — operating with an
attribute or set of attributes that allows an
organization to outperform its rivals.
– Sustainable competitive advantage — one that is
difficult for competitors to imitate.
 Basic concepts of strategy (cont.):
– Strategy — a comprehensive action plan that
identifies long-term direction for an organization
and guides resource utilization to accomplish
organizational goals with sustainable competitive
advantage.
– Strategic intent — focusing all organizational
energies on a unifying and compelling goal.
 Basic concepts of strategy (cont.):
– Strategic management — the process of formulating

and implementing strategies to accomplish long-term
goals and sustain competitive advantage.
Goal of strategic management is to create
above-average returns for investors.
– Returns exceeding those for alternative
opportunities at equivalent risk.
– Earning above-average returns depends in part on
the organization’s competitive environment.
VISION
NEWTON’S INSTITUE OF SCIENCE AND TECHNOLOGY
• Our Vision
"Striving for a symbiosis of technological excellence
and human values."
• Our Mision
"To arm young brains with competitive technology
and nurture holistic development of the individuals for
a better tomorrow."
• Quality Policy
"Education without quality is like a flower without
fragrance. It is our earnest resolve to strive towards
imparting high standards of teaching, training and
developing human resources."
VISION AND MISSION
• A vision statement is a company's road map,
indicating both what the company wants to
become and guiding transformational initiatives
by setting a defined direction for the company's
growth.
• Mission is the guiding force for all the activities
here. The first step in the process of achievement
of the mission is to break the mission into
objectives, strategies and programme have to be
formulated and implemented to achieve the given
objectives which would eventually lead to the
fulfillment of mission.
CHARACHTERISTICS OF A MISSION STATEMENT
• It must be clear enough to trigger action
• It focuses on customer needs and utilities, not products
• It should be capable of being measured in terms of strategic
targets
• It should focus on limited number of goals
• It outlines the major policies and values the company wants to
honour
• It also identifies the core principles to guide decision-making
• It should be flexible
• It also provides for the shared vision
• It is a facilitator
GOALS
• Goals are the overall objectives of a department
or an organisation
• Goal of a football team is to win
• The goal of manager is to create surplus for the
company
• Every individual is clear and conscious about
what is required for him/her to achieve the goal
• Goal is defined as “what an organisation wants to
achieve during or by the end of a given period.
• Based on the time frame, goals are classified into
long term goal and short term goal.
Significance of Goals
• Helps to define the organisation in its
environment
• It helps in coordinating decisions
• Goals are more tangible targets
• It facilitates performance appraisal
STRATEGY
• The term strategy is drawn from armed forces
• It is a strategic plan that interlocks all aspects of the
corporate mission designed to overpower the
enemy or the competitor
• Strategy is very important to face adversary
situations such as cut-throat competition
• Purpose: Strategy is an operational tool to achieve
the goals, and thus, the corporate mission.
CORPORATE PLANNING
Can be defined as ‘the process of formulating

the corporate mission, scanning the business
environment, evolving the strategies, creating
necessary infrastructure, and assigning
resources to achieve the given misson’.
Elements of Corporate Planning Process
• A) Identifying the Corporate Mission
• B) Formulating strategic objectives
• C) Appraising internal and external objectives
• D) Developing and evaluating alternative strategies
• E) Selecting the best strategy
• F) Fixing key targets for Strategic Business Units
• G) Allot resources for each SBU
• H) Developing operating plans
• i) Monitoring the performance
• J) Revising the plans where necessary

ENVIRONMENTAL SCANNING
• Environmental scanning involves an analysis and diagnosis of the
external and internal environments of the business firm.
• Environmental scanning is a vital part of the corporate planning
process.
• Effective planners try to anticipate what is likely to happen or
attempt to influence the environment in favourable directions.
• This requires long-term strategic vision and commitments to
corporate planning.
Why environmental scanning:
• The banks and business enterprises in the public sector are being
disinvested by the government.
• The government policies keeping changing the current focus of the
government of India has been an globalization, privatization, deregulation.
• As a results foreign goods are being dumped into the markets.
• Computers have wiped out the market for typewriters and electronic type
writers.
• Info-tech industry, which was very strong for over decades, suddenly
revealed downtrend.
• The advent of television channels has almost zeroed down the market for
• VCR and significantly affected the flow of film viewer traffic.
Study Question 2: What is the strategic
management process?
 What are our Strengths?  What are our
Weaknesses?
– Manufacturing efficiency?
– Outdated facilities?
– Skilled workforce?
– Inadequate research and
– Good market share?
development?
– Strong financing? – Obsolete technologies?
– Superior reputation? – Weak management?
– Past planning failures?
Management - Chapter 9
24
management process?
Analysis of organizational resources and

capabilities:
– Important goal of assessing core competencies.
– Potential core competencies:
• Special knowledge or expertise.
• Superior technology.
• Efficient manufacturing approaches.
• Unique product distribution systems.
Management Fundamentals - Chapter 9

25
SWOT analysis (strengths, weaknesses, opportunities, threats)
26
management process?
 What are our  What are our Threats?
Opportunities? – New competitors?
– Possible new markets? – Shortage of resources?
– Strong economy? – Changing market tastes?
– Weak market rivals? – New regulations?
– Emerging technologies? – Substitute products?
– Growth of existing
market?
27
management process?
 Analysis of industry and environment:
– Assessment of macro environment:
• Technology.
• Government.
• Social structures and population demographics.
• Global economy.
• Natural environment.
– Analysis of industry environment:
• Resource suppliers.
• Competitors.
• Customers.
28
STRATEGY FORMULATION
A) Identification of Mission and Objectives
B) Environmental Scanning
C) Generic Strategy Alternatives
D) Strategy Variations
E) Strategy Choice
F) Allocation of Resources and formulation of
organisational structures
G) Formulation of plans, policies, programmes, and
administration
H) Evaluation and control
Generic Strategy Alternatives
Expand Retrench Stabilise Combinati
on
Business Pace Business Pace Business Pace Definition

Definition Definition Definition or pace
Products Add ne Find new Drop old Decrease Maintain Make Drop old
Products users products product package while
developme changes, adding
nt quality new
improveme products
nts
Markets Find new Penetrate Drop Reduce Maintain Protect Drop old
territories markets distributio market market customers
n channels share shares, while
focus on finding
market new ones
niches
Functions Forward, Increase Become Decrease Maintain Improve Increase
vertical capacity captive process R production capacity
integration company &D efficiency and
improve
Dhanyavaad

Unit-5-Strategic Management

Uploaded by

Copyright:

Available Formats

Unit-5-Strategic Management

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Unit-5-Strategic Management

Uploaded by

Copyright:

Available Formats

STRATEGIC MANAGEMENT

 Basic concepts of strategy:

– Strategic management — the process of formulating

Can be defined as ‘the process of formulating

• B) Formulating strategic objectives

• C) Appraising internal and external objectives

• D) Developing and evaluating alternative strategies

• E) Selecting the best strategy

• F) Fixing key targets for Strategic Business Units

• G) Allot resources for each SBU

• H) Developing operating plans

• i) Monitoring the performance

• J) Revising the plans where necessary

Analysis of organizational resources and

Management Fundamentals - Chapter 9

Business Pace Business Pace Business Pace Definition

You might also like