Basic Concepts of Strategy

8/14/2019 Basic Concepts of Strategy

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Understanding basicconceptsConceptual foundations of strategic management


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Fortune magazine has declared The most valuable product onthis planet is not the micro

chip, not the automobile, notthe television set. What hasproduced more wealth thanany other thing dreamed of by


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How was it made


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One


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Strate


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It is process of playing withyour strengths and coverin

your weakness to capitalizethe opportunities ward off the threats which areavailable in external


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In a more simple


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Creating a superior


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In other


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Creating

competitiveadvantage and


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OrganizationalCapacity

Enterprise Synergies

Structural

Position

Process

Execution

Competitiveadvantage

Financialperformance

The Architecture of


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Managers

Owners/StakeholdersTrade

Custome

The Public atEmployeGovernme

Suppli

Local community

Constituents of Strategic


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Environmental

Scanning

StrategicFormulation

StrategicImplementat

ion

Evaluation&

Control

ExternalSocietal EnvironmentGeneral forces

Task EnvironmentIndustry Analysis

InternalStructure----Chain of commandCulture--- Beliefs, Expectation, valuesResources----Assets, Skills, Competencies,

VisionMissionObjectivesStrategi

ProgramsBudgets

Performance

Process of Strategic


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Differentiation

Cost leadership

Quick Response

Competitive

Advantage

Economic

Valueadded

MarketValueadded

Competitive Advantage: The focal Point o


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Levels of Strategy3.Corporate Level

Strategy4.Business Level Strategy

5.Functional Level


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11

2

3

4

5

6

7

8

9

10

11

12

A typical Formal Strategic


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Phases of Process2. Evaluate performance in light of goals and identify ga3. Relate gaps to environmental conditions.4. Relate gaps to organizational capabilities.5. Identify future goals, given understanding of gaps.6. Describe broad action plans aimed at meeting goals.

7. Identify resources required by each functions to impleplans.8. Aggregate needs by function into overall needs of

business.9. Allocate resources across multiple business units.10.Reallocate resources across multiple functions.11.Deploy resources within functions12.Monitor use of resources within functions13.Monitor use of resources across businesses .


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The Different Forms of Strategy

Intend

Realized

Unrealized

Emergent

Deliberate


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Stability

Simplici

Industry Maturity

Capital

Tightly Coupled

External

Use of StrategicProgrammingapproach to

implementation

Necessary

Motivatingconditions

Conditions that encourage a strategic programming


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A comparison of Mechanistic and Organic

an


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E m p h

a s i s

o n e m

e r g e

n t s t r a

t e g y

a n

O r g a

n i z a t

i o n a l

l e a r n

i n g

E m p h a s i

s o n D

e l i b e

r a t e

s t r a t e

g y a n

d

S t r a t e

g y a n d s

t r a t e g

i c p r o

g r a m

m i n g

Complex

Dynamism

Relatively

Relativelystable

Relatively

Relatively

A Continuum of Approaches to strategy

Documents

Basic Concepts of Strategy