TOPIC : STRATEGIC MANAGEMENT PROCESS

SR. NO. NAME ROLL NO.

1 Krishnat chougale 09

2 Hemant Dhandre 10

3 Nitin Kankal 26

4 Jini Joseph 38

5 Chandrakant Patil 40

6 Pramod Sawant 49

7 Pushkar Ujjainkar 58

Group D (1)Group D (1)

ContentsSr.No. Name of the Topic

1 Strategy : Meaning & Definition

2 Strategic Management : Meaning, Definition, Key attributes

3 Features of Strategic Management

4 Needs of Strategic Management

5 Importance of Strategic Management

6 Limitations of Strategic Management

7 Vision with example

8 Mission with example

9 Goal

10 Philosophy with example

11 Policies with example

12 Strategic Management Process

13 Brief Questions

14 Short Notes

15 Bibliography

““Strategy” Strategy” Dictionary meaning : A plan designed to achieve a long term aim.

What is Strategy?• Large-scale, future-oriented plan for interacting with

the competitive environment to achieve objectives• Company’s “game plan”• Framework for managerial decisions

• Definition : “The determination of the basic long term goals and objectives in an enterprise an the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.”

- Alfred Chandler

• What is Strategic Management? The set of decisions and actions that result in the formulation and implementation of plans designed toachieve a company’s objectives.

• Definition: “Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.”

• Key attributes of Strategic Management:- Directs the organization toward overall goals and

objectives.- Involves the inclusion of multiple stakeholders in

decision making.- Needs to incorporate short-term and long-term

perspectives.- Recognizes relation between efficiency and

effectiveness.

• Features of Strategic Management :1. Systematic process2. Relates to environment 3. Focus on objectives 4. Involves multiple decision 5. Continuous process 6. Top management function7. Universal applicability

• Need of Strategic Management:-1. Due to change2. To provide guidelines3. Research and development4. Probability for business performance5. Systemized decision6. Improves Communication7. Allocation of resource8. Improves Coordination9. Helps the managers to have holistic approach

• Importance of Strategic Management:-1. Aids decision-making2. Improves employees efficiency3. SWOT Analysis4. Aids in planning5. Organizing resources6. Helps in evaluation7. Facilitates communication and coordination8. Helps to face competition

• Limitations of Strategic Management :1. Based on certain assumptions

2. External environment can’t be analyzed accurately

3. Unrealistic mission & objectives

4. Lack of proper implementation

5. Lack of proper evaluation

6. Lack of commitment on the part of lower level Management

7. Lack of people with vision & dedication

Business Vision Statement

A vision statement is a concise word picture of the organization at some future time, which sets the overall direction of the organization.• A statement that clearly defines the firm’s “reason”

for being in business.• A vision statement is something to be pursued.• It is what the organization strives to be.• An image of the desired future.• Influenced by the strengths and weaknesses of the business

• Microsoft Corporation : To establish Microsoft as a global leader in diversity and inclusion by driving global executive leadership, engagement, and accountability and by increasing workforce diversity at all levels, building value and commitment for work-life balance, and building capabilities for people and organizations.

• Nestle : Our aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality.

• The mission statement of an organization is normally short, to the point, and contains the following elements:– Provides a concise statement of why the organization

exists, and what it is to achieve;– States the purpose and identity of the organization;– Defines the institution's values and philosophy; and– Describes how the organization will serve those

affected by its work.

Mission Statements

• Microsoft Corporation : Microsoft strives to understand, value, and incorporate the differences each employee brings to the company so that we can build the greatest multicultural workplace in the technology industry and reflect the growing diversity and inclusion of our communities and the global marketplace.

• General Motors : The fundamental purpose of GM is to provide products and service of such quality that our customers will receive superior value, our employees and business partners will share in our success, and our stockholders will receive a sustained, superior return on their investment .

• Goals :- It is the target or destination of each performance.

- Is an attempt to make a mission statement more tangible and more concrete.

- It reflects the firms intention to secure survival through growth and profitability.

• Apple Technologies Ltd : Make complex technology easy to use.

• Philosophy : An organizational philosophy establishes the values,

beliefs and guidelines for the manner in which the organization would conduct its business.

• IBM’s Philosophy : -Respect for individual. -Best customer service. -Pursue all tasks in a superior fashion.• The management philosophy of Godrej can be

expressed in a single word: “PRIDE” -Passion -Respect for people -Integrity -Dedication -Extraordinary Creativity

• Policies : - Policies are rules or guidelines to action. - General statements that guide decision making. - Ensures consistent decisions. - Help define issues before they become problem. - Help in delegation of authority.

Quality policy of Godrej

• At Godrej , we have an obligation to work and provide only the best and ever-improving products and services. To achieve this, we have a few policies, including one for quality, which each employee follows. We shall satisfy the stated needs of our customers and shall endeavor to fulfill their implied needs with utmost delight. We shall do this by enhancing the total quality of our products through:

• Continuous improvement in machinery & processes,

• Creatively collaborating with vendors, • Nurturing, developing and empowering our

people, • Finding new ways to satisfy customer needs, and • Value Engineering & Value Analysis.

• Strategic Management Process : - Developed by top management for achieving long

term objective.1. Scanning the environment2. Objective setting3. Strategic planning4. Corporate strategy5. Business policy6. Long term planning7. Functional strategy or action plan8. Monitoring & evaluation

1. Scanning the environment

- Face environmental changes

- Make best from this changes - Social, economic, technological changes are predictable - Geographical and political changes are not easily predictable - Top management must keep pace with the technological environment - Provides information about opportunities and threats

2. Objective setting:- Scanning of environment facilitates objective setting- Objective is at the root of strategic management- To achieve objectives strategic planning is needed.

3. Strategic planning :

- Set of plans are produced at intervals for specific time periods

- Continuous process - 4 elements of strategic planning a. understand your business b. understand your environment c. prepare a roadmap d. execution

4. Corporate strategy : - Management plans to carry out activities using it’s

resources within it’s environment to achieve it’s objectives.

- Guided by business policy of top management - Alternative strategies can be examine. - Minor and major strategies - Formulated at corporate level - Must identify Corporate competence & resources Market opportunity & potentiality Operational efficiency Social obligations & environmental force which

affects company’s opportunities - Improve corporate capability and image

5. Business Policy :- Policy is total philosophy of company.- Basic elements are :

• Objectives• Environmental analysis• Situation of firm• Corporate strategy• Time element

- With the changes in time, business policies change

6. Long term planning :- Part of strategic management- Indian companies hesitate (uncertainties &

environment)- Greater uncertainties leads to greater risk which

leads to greater need for long-term planning- Help to compete with foreign companies

7. Functional Strategy & Action Plan :- Integrates strategies for functional areas- Detailed strategies at each functional areas

8. Monitoring and Evaluation :- To accomplish objectives effectively- Provide direction to implement corporate policies- Evaluation is carried out to determine qualitative

and quantitative performance- Actual performance is compared with standard

performance- Helps to determine contribution from functional

areas- In event of failure proper system of appraisals are

used.

Brief Questions

Q.1. What is Strategic Management? How is the study of Strategic Management helpful for a business manager ?Q.2. Define Strategic Management. Explain its features ?Q.3. What is the importance of strategic management ?Q.4. Explain the process of strategic management?Q.5. State the vision, mission & objectives of any two organisations ? Give comments ?

Short NotesQ.1. Key attributes of strategic management.Q.2. Need of strategic management.Q.3. Limitations of strategic management.Q.4. Vision & mission with examples.Q.5. Business policy.

Bibliography1. Strategic Management, S.K. Sarangi, Everest

publishing House2. Strategic Management, Michael Vaz, Manan

Prakashan3. Globalization, liberalization and strategic

management, V.P. Michael

Websites :1. WWW.123management.net2. WWW.Citehr.com3. WWW.Managementparadise.com4. WWW.iveybusinessjournal.com5. WWW.Wikipedia.com

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